July 11, Colombo: Sri Lanka Minister of Transport Kumar Welgama says that about 40 percent of the funds allocated for development of rural roads are wasted.
Addressing the coordinating committee of his electorate, Matugama, the Minister explained how the wastage occurs.
According to the Minister, when a contract of a rural development project is given to a committee 5 percent of the contract goes to that organization as commission. Then the organization gives the project to a sub-contractor, who earns a profit of at least 10 percent.
He said that eventually only about 60 percent is actually utilized for the development project and stressed that 100 percent of the allocations are needed to be utilized in these rural area projects.