Cabinet decisions

Hungarian aid for two projects

The Cabinet has granted its approval to a Memorandum submitted by President Mahinda Rajapaksa on an agreement between Sri Lanka and Hungary on the establishment of a framework programme for financial cooperation.

Hungary has offered a tied aid credit programme to finance supply of Hungarian goods and related services for projects implemented by Sri Lanka.

The credit is offered under the Organization for Economic Cooperation and Development (OECD).

Based on the requests made by Sri Lanka, Hungary has allocated Euro 51 million for two projects. Labugama and Kalatuwawa Water Treatment facilities will be rehabilitated at a cost of Euro 35 million.

Hungary will provide Fisheries Harbour Operational Equipment worth of Euro 16 million.

The interest rate will be 1 to 2 percent per annum with a maximum grace period of 3 years commencing 6 months after completion of the project.

Additional postmen to be appointed

The Cabinet has granted its approval to a Memorandum submitted by Posts and Telecommunication Minister D.M. Jayaratne on the recruitment of additional postmen to regularize delivery of mail.

Taking into consideration the population increase and expansion of economic and development activities in rural areas delivery beats are revised every 5 years, aiming to provide letter delivery facilities to the people in those areas. The last letter delivery beat was done 1994.

Accordingly 1507 additional postmen posts were identified for all over the country to provide letter delivery services to people who are settled in new colonized areas. The Cabinet has granted its approval to allocate financial provisions from the General Treasury for the recruitment of 1507 postmen.

Hydro-power potential to be increased

The Cabinet has granted its approval to a Memorandum submitted by Power and Energy Minister W.D.J. Seneviratne on the implementation Broadland, Gin Ganga, Moragolla and Uma Oya hydro-power projects.

The hydro-power potential of Kelani and Mahaweli river basins has already been developed to a great extent.

However, some hydro-power potential remains to be developed. The Ceylon Electricity Board has identified Broadland, Gin Ganga, Moragolla and Uma Oya.

The Cabinet granted its approval to implement the Broadland Power Project by the CEB and for it to invite detailed technical, commercial and credit facility proposals from Exim Bank of China. Moragolla and Gin Ganga projects will be implemented by Join Venture Companies.

Japan will undertake the construction of Uma Oya project. Torrington

Plant Nursery to be transferred

The Cabinet has granted its approval to a Memorandum submitted by Samurdhi and Poverty Alleviation Minister Pavithra Wanniarachchi on the transfer of Torrington Plant Nursery to the Ministry of Promotion of Botanical and Zoological Gardens.

On a Cabinet decision this plant nursery earlier owned by the Water Resources Board has been taken over by the Samurdhi Authority. The Cabinet granted approval to re-attach the staff of the nursery to thee Ministry of Promotion of Botanical and Zoological Garden and to reimburse the expenditure occurred for the development of the nursery to Samurdhi Authority.

Fisheries Harbour at Dikowita

The Cabinet has granted its approval to a Memorandum submitted by Fisheries and Aquatic Resources Minister Felix Perera on the construction of a fisheries harbour at Dikowita.

Interbeton MV of the Netherlands has submitted for an ORET grant for part funding. The total cost of this project is Euro 53 million.

Euro 45 million will be spent for marine structures and Euro 8 million for shore facilities. This project is to be completed in 3 years.

Animal Feed Act to be amended

The Cabinet has granted its approval to a Memorandum submitted by Estate Infrastructure and Livestock Development Minister Hon. R.M.C.B. Ranayake on the amendment to the Animal Feed Act. This Animal Feed Act was enacted in 1986.

The amendment would also ensure the safeguarding the rights of animal feed buyers, increase the penalty for violation of provisions and the new trends appearing in animal feed production and distribution.

Resettlement of displaced

The Cabinet has granted its approval to a Memorandum submitted by Irrigation Minister M.I. Anver Ismail to obtain Crown lands released for the resettlement of people displaced as a result of construction of Deduru Oya Reservoir in Kurunegala District.

Twenty acres of land from Peter Valley Estate in Hiripitiya, 26 acres of land from Polgammana Estate, Wariyapola and 100 acres from Thelahera Farm in Kobaigane.

Negotiations are being held to obtain funds from the Netherlands and it is necessary to resettle the affected families before the commencement of construction work.

Access road to Rajarata University

The Cabinet has granted its approval to a Memorandum submitted by Education Minister Hon. Susil Premajayantha on the construction of n access road for the Faculty of Agriculture of the Rajarata University at Puliyankulama.

The faculty is at the end of the Mechanical Farm of the Department of Agriculture. Since there is no short-cut access road, the students have to travel about 2 km around the Farm. Therefore, the Cabinet has granted its approval to provide an access road of 20 feet width.