Cabinet Decisions

Subsidiary agreement for second community development and livelihood improvement project

The Cabinet has approved a memorandum submitted by President Mahinda Rajapaksa as Finance and Planning Minister to enter into a Subsidiary Agreement for the Second Community Development and Livelihood Improvement Project to provide US$ 60 million equivalent in rupees to Gemi Diriya Foundation and the Treasury Secretary to sign the Agreement on behalf of the Government.

The project will cover seven Districts, Badulla, Moneragala, Hambantota, Polonnaruwa, Ratnapura, Nuwara Eliya and Kegalle.

The Nation Building and Estate Infrastructure Development Ministry will act as the Coordinating and Monitoring Ministry and Gemi Diriya Foundation will be the implementing agency for the project.

Proposed agreement between Russia and Sri Lanka to suppress Illicit Traffic in, and abuse of, Narcotic Drugs

The Cabinet has approved a memorandum submitted by President Mahinda Rajapaksa as Defence, Public Security, Law and Order Minister to propose agreement between the Government of the Russian Federation and the Government on Cooperation to suppress Illicit Traffic in, and abuse of, Narcotic Drugs and Psychotropic Sustenance and enter into this Convention proposed for collaborative mechanism with the Russian Federation to combat trafficking and use of drugs and psychotropic substances.

In terms of the National Policy for the prevention and control of Drug abuse published on June 26, 2006, formulation and implementation of regional and international programs to combat drug menace have been accepted as a policy.

Puttalam Coal Power Project- Phase II

The Cabinet has approved a memorandum submitted by President Mahinda Rajapaksa as Finance and Planning Minister to enter into a loan agreement with the Export- Import Bank of China to borrow of US$ 891 million for the financing of Puttalam Coal Power Project - Phase II and on lend the proceeds of the Credit Facility to the Ceylon Electricity Board on terms be determined by the Treasury.

The Chinese Government has agreed to extend a Preferential Buyer's Credit Facility through the Export Import (Exim) Bank of China for the implementation of Phase II of the Puttalam Coal Power Project.

The cost of the project is US$ 891 million and the full cost will be financed by the Exim Bank of China under the Preferential Buyer's Credit Facility.

Infrastructure provision facilities for the University of Wayamba

The Cabinet has approved a memorandum submitted by the Higher Education Minister Wiswa Warnapala to uplift the infrastructure facilities for the University of Wayamba.

It will facilitate the university to maintain a peaceful environment.

It is expected to construct a part of the proposed four storied building with a gross floor area of 2800 sq.m, at a cost of Rs, 165 million for the Faculty of Business Studies and Finance, at Kuliyapitiya premises at first stage of this project at a cost of Rs.30 million.

It hopes to award the consultancy of this Project to the State Engineering Corporation in order to expedite the commencement of work.

Establishment of an Art Gallery for the University of Peradeniya

The Cabinet has approved a memorandum submitted by Higher Education Minister Wiswa Warnapala to establish an Art Gallery for the University of Peradeniya at a cost of Rs.6 million on self finance base and to award the construction to Central Engineering Consultancy Bureau on "Design and Build basis.

Construction of a clinical building for the Faculty of Medicine and Allied Sciences of the Rajarata University

The Cabinet has approved a memorandum submitted by Higher Education Minister Wiswa Warnapala to award the construction of the six storied clinical building with a gross floor area of 10989 sqm.

At a revised cost of Rs. 673 million (including 12 percent VAT) for the Faculty of Medicine and Allied Sciences of the University of Rajarata , to the State Engineering Corporation (SEC) on design and build (Measure and Pay) basis and to make payments on the rates approved by the Construction and Engineering Services.

It is expected to commence the project in 2009 with the allocation provided amounting to Rs.125 million.

Construction of a building for the Faculty of Graduate Studies, University of Jaffna

The Cabinet has approved a memorandum submitted by Higher Education Minister Wiswa Warnapala to construct a three storied building for the Faculty of Graduate Studies of the Jaffna University with a gross floor area of 600sqm at a cost of Rs. 42.35 million and to award the construction of building to the Central Engineering Consultancy Bureau on 'Design and Build' ( Measure and Pay) basis and to make payments on the rates approved by the Standing Technical Committee of the Ministry of Construction and Engineering Services and to implement the project in year 2010, phasing out within a period of 2 years.

The University Grants Commission has also recommended implementing this project in the year 2010.

The entire cost of this project is expected to be financed from the consolidated fund.