Sri Lanka is set to extend a road rehabilitation project in the north of the country with an investment of $98m.

The project, which is being funded by Asian Development Bank (ADB), includes the restoration of 230km of national and provincial roads in war-torn Northern Province and North Central Province.

Of the total amount, ADB will provide an ordinary capital resources loan of $30m and a concessional Asian Development Fund loan of $68m.

Another $20m will come from surplus funds allocated for the original project, which was approved in 2010, while technical assistance of $1m will be given to support road oversight agencies.

The improvements follow the previous restoration of over 300km of roads in the two provinces, which were severely affected by conflicts for several years.

"ADB will provide an ordinary capital resources loan of $30m and a concessional Asian Development Fund loan of $68m."

The overall expanded road is expected to provide 1.86 million people living in these areas with better access to social services and economic opportunities.

Asian Development Bank South Asia department transport specialist Chen Chen said that the additional road upgrades will give distant communities easier access to services, including schools, health clinics and markets.

"Faster connectivity to the south, including the capital Colombo, will cut travel costs and open up new economic and employment opportunities," Chen added.

The project, expected to be completed by the end of 2017, aims to lessen travel time on the targeted roads in the two provinces by an average of 20% from the 2010 level.

Infrastructure upgrades in the provinces is an important part of the country’s national strategy for inclusive growth.