The government's Foreign Resource Mobilisation Strategy(FRMS) for the period 2020–2025 was marked with realigning its projectpipeline of almost USD 9 billion to be disbursed in the next 5–7 years, intohigh impact sectors, Finance Ministry sources revealed.
It is also ensuringthat wherever possible if the technology is available in the country and if theimport content is minimal such activities are to be executed through localfunds and local contractors.
This will reduce the dependency on foreign currency debtand thereby the currency risks, to finance development projects especially inthe context of alternatives being available.The Government’s financing strategy is more domesticcurrency tilted - it is nevertheless not envisaged to result in the crowding outof resources in the market.
The capital budget is to be implemented through domesticcontractors such that the funds will be circulated to the private sector viathe Government.
To support domestic industries given that the Governmentis the single largest procurer of goods and services, procedures wereintroduced to provide preference to domestic producers of construction,software and hardware, furniture and allied appliances.
However, at the same time, the Government has approvedthe construction of the elevated expressway of 16 kilometres, connecting theNew Kelani Bridge and Athurugiriya, which will in reality seamlessly connectthe Southern Port to the Colombo Port and also the Port City.
The contractor will Build, Operate and Transfer the elevated expressway to the Government at the end of 15 years after theconstruction.
Such modalities will enable the country to create assetsthat has the potential to generate significant value in the economy without thefiscal space being imposed at the outset itself.