French help for construction industry development

COLOMBO: The French Government has agreed to provide a concessionary loan upto Euro 10 million for development of Sri Lanka's construction industry.

The project's objective is to strengthen the capacity and improve the ability of the construction industry to facilitate its participation in rehabilitation of tsunami damaged infrastructure expeditiously.

Out of Euro 10 million, Euro 9 million (Rs. 1170 million) will be provided as credit to the domestic construction industry through the Central Bank of Sri Lanka. This credit facility can be used for purchase of construction equipment and also for working capital requirements of the small and medium entrepreneurs in the sector.

The Central Bank of Sri Lanka will channel the credit funds through commercial banks and leasing companies registered with it.

The balance Euro 1 million will be provided to strengthen the management competence and technical capacity of the employees in the construction sector by contributing to the establishment Advanced Construction Trading Academy (ACTA) by the National Construction Association.

The signing of the agreement for the credit facility took place at the Ministry of Finance and Planning. Jean Bernard Maucor, Resident Representative of Agency Francaise de Development (AFD) signed the agreement on behalf of the French Government and Dr. P.B. Jayasundera, Secretary to the Ministry of Finance and Planning on behalf of the Government of Sri Lanka. The Ambassador for France in Sri Lanka Michel Lummaux also participated.