Netherlands boosts rural bridges in Sri Lanka with extra grant

Thursday September 11, 2025 7:13 pm

ECONOMYNEXT – The Netherlands has approved an additional grant of 730,000 euro to support Sri Lanka’s rural bridges project, a major initiative to improve connectivity and mobility in rural parts of the island, the island nation’s Finance Ministry said.

The project, launched under a partnership between the Sri Lankan government and the Netherlands, aims to build 162 rural bridges across the country.

As of September 2025, 151 bridges have been completed, with physical progress reaching 96 percent. Officials expect the remaining bridges to be finished by February 2026, marking the successful conclusion of the program.

Sri Lanka initially entered into a 41.8 million euro loan agreement with Coöperatieve Rabobank U.A. of the Netherlands, covering 75 percent of the total project cost.

The remaining 25 percent (13.9 million euro) came through a grant from Invest International, a Dutch state-owned financing institution.

However, in recognition of Sri Lanka’s ongoing economic crisis, the Netherlands increased its grant contribution in 2024 by 5.3 million euro, raising its share to 35% and easing Colombo’s debt burden.

With the latest injection, the Netherlands’ total grant assistance now amounts to 18.9 million, representing about 37 percent of the overall project cost.

“These bridges connect farmers to markets, children to schools, and families to healthcare,” Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning and Economic Development said after meeting Acting Dutch Ambassador Iwan Rutjens in Colombo.

Rutjens reaffirmed the Netherlands’ commitment to Sri Lanka’s development journey.

“We are pleased to support this project, which directly improves the daily lives of rural citizens. The Netherlands remains open to exploring concessional financing and cooperation in future development priorities,” he said.

Development experts say the project is crucial for reducing isolation in rural districts, particularly in the Northern, Eastern, and Uva Provinces, where poor infrastructure has long hindered economic opportunities.

Analysts also point out that by partially replacing loans with grants, the Netherlands has helped Sri Lanka ease pressure on its already strained external debt.

The Rural Bridges Project is now considered a model of international cooperation, combining concessional loans with increasing grant support to ensure that Sri Lanka’s most vulnerable communities are not left behind. (Colombo/September 11/2025)