Colombo, Mar 21 (IANS): To meet the sharp rise in the cost of construction in Sri Lanka due to the ongoing financial crisis, India would provide up to 50 per cent additional funds to grant projects in the island nation.

High Commissioner of India, Santosh Jha, and Secretary, Ministry of Urban Development and Housing W.S. Sathyananda on Thursday signed and exchanged diplomatic letters to formalise the Indian government's decision to provide an additional grant of SLR (Sri Lankan Rupee) 150 million for the construction of Houses and Infrastructure Facilities in Sobitha Thero Village in Anuradhapura, one of the nine grant projects of India.

"With this, India's total commitment to the project currently stands at SLR 450 million," the Indian High Commission in Colombo said.

With the formalisation of the additional grant amount, 90 houses shall be constructed in the village with the Indian grant.

The project is currently underway and the proposed houses are at various stages of construction.

The project is being executed in collaboration with Ven. Maduluwawe Sobhitha Thero Commemoration Foundation, the High Commission stated.

The High Commission noted that responding to the drastic changes in the economic landscape of Sri Lanka, the Indian government decided to infuse additional funds into the 9 ongoing grant projects in order to expeditiously complete them, while also minimising the impact of the sharp rise in the cost of construction materials on the original scope of projects.

"The extent of additional funds is up to 50 per cent of the original commitment by India in each of the nine projects," the High Commission said.