Sri Lanka’s cabinet has approved the award of a JICA-funded contract worth 628.10 million Japanese yen — about Rs. 2,660.70 million — to Maga Engineering (Pvt) Ltd for Phase II of the Anuradhapura North Water Supply Project.
The contract covers the laying of distribution mains and new service connections across three divisional secretariat divisions in the north-central dry zone: Kahatagas Digiliya, Horowpathana and Rambewa. Once operational, Phase II is expected to deliver safe drinking water to residents of 164 Grama Niladhari divisions across a wider footprint that also takes in Padaviya, Kebitigollewa and Medawachchiya — communities currently relying on unsafe groundwater.
Cabinet spokesperson Minister Vijitha Herath said the project selection was initiated in 2022 under the National Competitive Bidding Procedure. JICA had approved price adjustments recommended by the government’s High-Level Standing Procurement Committee before cabinet signed off on the award.
The approval follows an earlier cabinet decision on March 30 that cleared contracts for Padaviya and Kebitigollewa under the same Anuradhapura North programme, signalling a steady rollout of Japanese-financed rural water infrastructure in the region.
Maga Engineering is one of Sri Lanka’s largest domestic construction firms and a frequent contractor on donor-funded infrastructure projects. The award comes as the government uses foreign-financed public works to sustain activity in the construction sector, which has been squeezed by the dual shock of the Middle East energy crisis and the US tariff increase.
