Dec 07, Colombo: The Sri Lankan government says that discussions on the terms and conditions to secure a loan for the Yan Oya Irrigation scheme is currently underway with China's Exim Bank.
Irrigation and Water Resources Minister Nimal Siripala de Silva has told parliament that the government was discussing the terms to secure a Rs. 800 million loan for the irrigation project as the project could not be postponed.
The Minister has made this comment in response to a question posed by United National Party (UNP) parliamentarian Rosy Senanayake on the irrigation project and how the monies would be raised.
The government has to provide alternate lands to about 248 families who would lose their homes and agriculture lands due to the project.
China CAMC Engineering Corporation last year signed a contract with Sri Lanka's Ministry of Irrigation and Water Resources Management to build the Yan Oya water reservoir which will solve the water problems in Sri Lanka's Eastern Province.
According to the Ministry, the project, estimated to cost US$ 176 million will boost agricultural production and inland fishery development in the Northeast.