The Gin-Nilwala Diversion Project commenced in 2014 with the Cabinet approval. Accordingly the contract was awarded to Chinese Company at a cost of USD 696 million. However, the project has not been implemented as the activities of the loan agreement with China EXIM Bank have not been finalized.
This week, Ravi Karunanayake, Minister of Finance presented the cabinet paper to appoint a Cabinet Subcommittee to investigate the following matters and to appoint a Committee of Officials to assist the process.
The committee will look into whether the contract agreement can be implemented without any additional cost to the government, Assess the negative impact and costs if one party wants to terminate the agreement, unilaterally, whether those officials involved have violated any financial regulations, government procedures and circular instructions, and how to recover the advance payment without any adverse implications.
Minister of Finance Ravi Karunanayake, Minister of Megapolis and Western Development Champika Ranawake, Minister of Health Rajitha Senarathne, and Minister of Special Assignment Sarath Amunugama are included in the committee.
