Saudi Fund for Development Extends USD 425 Million in Development Support to Sri Lanka
July 13, 2025 –
Since the beginning of its partnership with Sri Lanka, the Saudi Fund for Development (SFD) has provided 15 development loans totaling approximately USD 425 million. These contributions have supported 13 major projects across vital sectors such as water, energy, health, road infrastructure, and education, reinforcing the SFD’s commitment to promoting sustainable development and economic resilience in Sri Lanka.
Among the most significant projects funded through this collaboration:
1 Water and Sewage Treatment Plant in Colombo (1981): USD 29.7 million
2 Power Transmission Project in Colombo (1981): USD 19.8 million
3 Mahaweli and Kalu Ganga Rivers Development Project – Phase B (1983): USD 24.7 million
4 Colombo Hospital Improvement (2002): USD 12 million
5 Batticaloa–Trincomalee Road Project (2004): USD 10.7 million
6 Epilepsy Hospital and Health Centers (2008): USD 20 million
7 Supplementary Financing for Health Projects (Colombo): USD 2.94 million
8 Kalu Ganga Development Project (2010): USD 46.1 million
9 National Road Network Enhancement (2012): USD 59.9 million
10 Peradeniya–Badulla–Chenkaladi Road Improvement (2015): USD 60 million
11 Additional Health Sector Financing: USD 12 million
12 Northern Kalu Ganga Development Project (2017): USD 44.8 million
13 Wayamba University Township Development (2017): USD 28 million
14 Further Kalu Ganga Project Financing (2018): USD 15.8 million
15 Faculty of Medicine, Sabaragamuwa University: USD 50 million
A notable example of this enduring cooperation is the Wayamba University Township Development Project, for which a loan agreement was signed on October 24, 2017, allocating USD 28 million (approximately SAR 105 million). This initiative aims to expand and modernize the university’s infrastructure to accommodate over 5,000 students.
The project’s objectives include enhancing academic facilities, upgrading research and learning infrastructure, and positioning the university as a regional educational hub in Kuliyapitiya and Makandura. The improvements are expected to significantly boost the quality of higher education and contribute to the long-term economic and social development of the surrounding communities.
This multi-decade collaboration between the SFD and the Government of Sri Lanka reflects a shared commitment to advancing sustainable development goals and fostering prosperity through strategic investments in infrastructure and human capital.
