Cabinet decisions

Medical Ward Complex at Kandy Teaching Hospital

The Cabinet has approved a memorandum submitted by Healthcare and Nutrition Minister Nimal Siripala de Silva to construct a six-storey building to establish 12 wards, six male and six female, a medical intensive care unit, X-Ray room, scanning room, emergency laboratory, Endoscopy Room and rooms for Medical Officers on call in order to improve the quality of in-patient care provided by the hospital.

This ward complex is expected to provide high quality medical care to more than 30,000 patients annually. The estimated cost of the project is Rs. 400 million and the amount is to be obtained from the Consolidated Fund over a three year period.

Accident and Emergency Care Unit for Provincial General Hospital, Ratnapura

The Cabinet has approved a memorandum submitted by Healthcare and Nutrition Minister Nimal Siripala de Silva to establish an accident and emergency care unit at the General Hospital, Ratnapura, utilising Rs. 798.05 million from the Consolidated Fund and as recommended by the Department of National Planning.

Handicraft products to be exempted from VAT

The Cabinet has approved a memorandum submitted by Rural Industries and Self-Employment Promotion Minister S. B. Nawinna to exempt handicraft products from the Value Added Tax (VAT).

Revolving Fund for replanting in tea smallholdings to be revitalised

The Cabinet has approved a memorandum submitted by Plantation Industries Minister D. M. Jayaratne to use money obtained from accumulated loan recoveries from an initial allocation by the Asian Development Bank and the Central Bank to revitalise the Revolving Fund for replanting in tea smallholdings.

Dam safety and water resources planning project

The Cabinet has approved a memorandum submitted by President Mahinda Rajapaksa in his capacity as Finance and Planning Minister to enter into a financial agreement with the International Development Association for the implementation of a Dam Safety and Water Resource Planning Project.

The project seeks to improve water resources and asset management, reduce water-induced hazards, ensure public safety and enhance effectiveness of the investments in water resources management.

The project has three main components: a) improving dam safety and operation efficiency, 2) upgrading and modernising the existing hydro-metrological information systems, and 3) improving institutional capacity for integrated and multi-sector water resources planning for selected river basins.

These include remediation work on 32 dams, provision of basic safety and operational facilities of 80 major and medium dams, the establishment of 9 new and 41 upgraded hydrometric stations, modernising 30 agro-meteorological stations and establishment of relevant data banks.

Kelani right bank water treatment plant project

The Cabinet has approved to a memorandum submitted by Finance and Planning Acting Minister Ranjith Siyambalapitiya to enter into a loan agreement with Nordea Bank Danmark A/S of Denmark to borrow Euro 52,574,132.56 on interest free terms to finance the contract entered into by the National Water Supply and Drainage Board (NWS and DB) and M/s Per Aarsleff-Salcon J.V. of Denmark to implement the Kelani Right Bank Water Treatment Plant Project and to lend the proceeds of the loan to the NWS and DB on terms acceptable to the Treasury.

The repayment is to be done in 20 equal semi-annual installments commencing on March 31, 2011.

French Government assists tsunami recovery and reconstruction

The Cabinet has approved a memorandum submitted by Finance and Planning Acting Minister Ranjith Siyambalapitiya to enter into a credit facility agreement with Agence Francaise de Development of France to obtain Euro 15 million at a 1% interest rate per annum and payable over 20 years including a grace period of 10 years to finance additional funding requirements of the Road Component of the Trincomalee Integrated Infrastructure Project, a key component of the rehabilitation and reconstruction efforts in the tsunami-affected district.

The funds will be used to reconstruct damaged bridges and national highways, rehabilitate and extend water supply, rehabilitate and extend power transmission and effect community development including tertiary roads, public facilities and infrastructure-related to new settlements.

IFAD to fund Post-tsunami Coastal Rehabilitation and Resource Management Programme and Livelihood Support and Partnership Programme

The Cabinet has approved a memorandum submitted by President Mahinda Rajapaksa in his capacity as Finance and Planning Minister to enter into two loan agreements with the International Fund for Agriculture Development to borrow SDR 10.95 million for the post-tsunami coastal rehabilitation and resource management programme and SDR 1.65 million for the post-tsunami livelihood support and partnership programme.

The loans will be obtained at an interest rate of 0.75% per annum at a repayment period of 40 years including a 10-year grace period.

Buffalo imports to strengthen livestock development

The Cabinet has approved a memorandum submitted by Livestock Development Minister R. M. C. B. Ratnayake to import 200 Mura buffalos in order to strengthen the livestock sector of the country.

Oluvil Port Construction under Danish Mixed Credit Programme

The Cabinet approved a memorandum submitted by Finance and Planning Acting Minister Ranjith Siyambalapitiya to enter into a credit agreement with Nodea Bank Danmark A/S of Denmark to borrow Euro 46,095,369.45 at a 0.1% interest rate to be repaid in 20 equal semi-annual installments commencing on March 31, 2011.

The contract for this project has been awarded to M/S/ M.T. Hojgaard A/S of Denmark and the total cost has been estimated at Rs. 7,744 million.

The Port will have the capability to cater to large ships with in-built tanks exceeding the eight meter depth level mark.

The main harbour is expected to be spread over 16 hc and during State Two, the depth is to be increased to 11m enabling it to cater to larger vessels weighing over 16,000 tons.

The capacity in the main harbour is to be expanded to 24ha during this stage.

Cultural Heritage Exhibition in Japan

The Cabinet has approved a memorandum submitted by Mahinda Yapa Abeywardena, Acting Minister of National Heritage and Cultural Affairs, to organize an exhibition focusing on Sri Lanka's cultural heritage at the Tokyo National Museum.

There will be 194 items on display including archaeological artifacts, reproductions, paintings and photographs.