Austria has granted a 100 million U.S.Dollars financial assistance package for economic development in Sri Lanka. The package is in the form of a grant and a soft loan.
The 65 million U.S.Dollars soft loan portion will carry a 2% interest and have to be repaid over a period of 30 years. The balance 35 million U.S.Dollars will be a grant
This has been disclosed at a meeting held between the Minister of Economic Development Basil Rajapaksa and the Austrian Ambassador to Sri Lanka, Dr. Ferdinand Maultaschi to discuss trade and economic relation between the two countries. The Austrian Ambassador to Colombo Dr. Ferdinand Maultaschi has pledged to help Sri Lanka to rebuild its economy and provide necessary assistance for further development works.
Officials of the Ministry of Economic Development commenting on this aids package said that under first phase of the aid programme drinking water projects, hospital modernization projects, railway and highway bridge construction projects will be carried out.
The envoy has assured Austria's help for Sri Lanka to initiate wind power generation projects starting with small scale wind power plants which could be used for agriculture and rural development.
The officials said that more discussions will be held prior to the start of the second phase of the program, which will include rehabilitation and upgrading and strengthening of advanced technological projects, integrated landslide mitigation project for soil stabilization and slope securing, rehabilitation and upgrading of sewerage infrastructure and sanitation projects.
Austria will help Sri Lanka to initiate wind power generation projects. Austria is one of the European countries which use wind power as a major power source ambassador said. Minister requested the ambassador to help Sri Lanka to start small scale wind power plants thereby enabling country to use them for agriculture and rural development. (niz+)