Feb 02, Colombo: The Sri Lankan Cabinet of Ministers has given permission for the government to conduct negotiations with the International Bank for Reconstruction & Development (IBRB) of the World Bank to obtain US $213 million loan for the implementation of the Metro Colombo Urban Development Project.

The President, as the Minister of Finance and Planning, has submitted the proposal seeking the financial assistance.

The Metro Colombo Integrated Urban Development Project is aimed at the urban regeneration and resettlement of informal dwellings located in flood-prone and hazardous areas and the management of floods and drainage in the city.

It will reduce the occurrence of floods affecting the people and assets in the region, implement medium and small scale infrastructure projects benefiting the residents of the metro area and enhance the institutional capacity of local authorities.

In addition, the project will also focus on strengthening of municipalities, including the Metro Colombo area.

With the implementation of the project, the government hopes to reduce adverse physical and socio- economic impact of flooding in the Colombo Metropolitan Area and to improve the overall capacity of land use and economic activities in the area.

The Ministry of Defence and Urban Development expects to begin project activities in April 2012 and the project is expected to be completed within three years.