State banks give Rs. 230 b road construction loans

State banks have granted loans to the tune of Rs. 230 billion for 64 projects by the Road Development Authority, including for sub-contracts to construct highways and other roads.

For highways alone, the credit obtained by the RDA is Rs. 80

The People’s Bank, Bank of Ceylon, National Savings Bank, National Development Bank and DFCC Bank as well as the Commercial Bank and Sampath Bank have given the loans, on a cabinet decision taken on 21 February 2014.

The accepted procedure was not followed in awarding the contracts for these projects, with the ministers deciding the expenses at their will.