The Sri Lankan government is reported to be hesitating over Japan's US $1 billion loan for the third phase of the Central Expressway project, stating the conditions attached are too severe.
Japan has reportedly said the project would be cancelled if there was bribery or corruption involved.
Speaking to the Sunday Times, Sri Lankan Treasury External Resources Department Director General, Priyantha Rathnayake said, "the government was not agreeable to such conditions as it was difficult to negotiate on these terms."
"The loan under negotiation had no link with the IMF facility and the government could not be held responsible if a third party got involved in a bribery issue."
"The loan under negotiation had no link with the IMF facility and the government could not be held responsible if a third party got involved in a bribery issue," he added.
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