The government has obtained Rs.33,730 million as loans from local banks to construct roads. These loans have been obtained as long term loans. Economists say that obtaining loans from local banks to construct roads is a serious matter. They point out that constructing roads is not a direct economic investment and obtaining as long term loans the funds that are reserved to be invested for local investments would deny local entrepreneurs opportunities to obtain bank loans for their projects.
Meanwhile, the Road Development Authority (RDA) that is under the President has received a profit of Rs.9,768,169.00 in 2012. However, by 2013 it has recorded a loss of Rs. 1,059,761,549.00!
In such an environment obtaining bank loans for road construction is a threat for local banks point out economists.