Having identified the need for developing the infrastructure such as rural roads, medium and small size irrigation and rural and urban water supply, the Government of Sri Lanka has decided to implement rural infrastructure development projects in emerging regions and the Kalu Ganga water supply expansion project.The Government of Japan has agreed to provide two concessional loans amounting to Japanese Yen 44,767 million (Approximately Rs. 60,407 million) through the Japan International Cooperation Agency (JICA) for the implementation of the rural infrastructure development and water supply projects. As highlighted by the Economic Policy Statement of Prime Minister Ranil Wickremesinghe in November 2015, the Government is in the process of rebuilding of conflict affected areas through the improvementation of basic infrastructure to promote regional economies. The signing of Loan Agreements pertaining to the above loans took place today, at the Ministry of Finance and Mass Media. Dr. R.H.S Samaratunga, Secretary, Ministry of Finance and Mass Media on behalf of the Government of Sri Lanka and Fusato Tanaka, Chief Representative of JICA Sri Lanka Office on behalf of JICA signed the above Loan Agreements. (Colombo Gazette) Rural infrastructure development projects in emerging regions are aligned with the development policy of the Government by aiming at improving the living standards of the people through developing the basic infrastructure in the emerging regions in Sri Lanka. Accordingly, the Government of Japan has agreed to provide a concessional loan of Japanese Yen 12,957 million (17,431 million) for the project to improve living standards and to develop livelihoods through the improvement of basic infrastructure, such as rural roads, medium and small size irrigation and rural water supply facilities in the Northern, Eastern, North Central and Uva Provinces, thereby contributing to development of rural economies and reducing regional disparities in the country.Japan has also agreed to provide a concessional loan of Japanese Yen 31,810 million (Approximately Rs. 42,976 million) to implement the Kalu Ganga Water Supply Expansion Project (I) to provide safe water and increase water supply efficiency in the southern area of the Western Province by expanding the Kalu Ganage water supply facilities and restructuring water distribution networks, thereby contributing to the improvement of the living conditions of the people. Accordingly, it is expected to expand Kalu Ganga Water Supply System and to reduce Non Revenue Water by restructuring water distribution networks in Dehiwala and Moratuwa areas.