• Bandula says Rs. 87 bn to be settled prior to New Year
• 40% to be paid in January, 30% in March, rest in April

The Government will settle over Rs. 87 billion of payments due to suppliers and contractors of road development projects before the Sinhala and Tamil New Year in April through the issuance of a Treasury Bond, Cabinet Spokesman and Minister of Mass Media, Transport and Highways Bandula Gunawardana said. 

Speaking at the Cabinet briefing held yesterday (7), he said that following a lengthy discussion with the Treasury, the Ministry obtained a Treasury Bond to settle over Rs. 87 billion of remaining payments to suppliers and contractors of road development projects with a payback period of three years.

He added that 40% of the Rs. 87 billion would be paid in February, while 30% would be settled in March and the rest before the Sinhala and Tamil New year. 

By August 2022, the total arrears to suppliers and contractors of road development projects stood at Rs. 100 billion.

The Minister said that this decision is in accordance with the zero-based budgeting methodology which received Cabinet approval on Monday (6), where expenses due in a particular year by a ministry or state institution should be settled within that same year. 

Through a zero-based budgeting methodology, the Government expects to recognise the double counting of programme expenditure wastage, low-priority activities and efficient and productive methodologies of utilising the allocation of existing provisions through a systematic review.