COLOMBO — The Kingdom's embassy in Colombo has refuted allegations that Saudi Arabia is providing loans for Muslims through some local banks at the interest rate of 1 percent.

The Embassy of Saudi Arabia referred to a statement made by former Western Province Governor Dr. Hemakumara Nanayakkara on June 13 in their media release refuting the allegations.

The embassy has asserted that “the soft loans provided by Saudi Arabia for the development projects in Sri Lanka are intended to be contributions to provide a quality life for the friendly people of Sri Lanka.”

The list of projects financed by the government of Saudi Arabia in Sri Lanka, as revealed by the Embassy of Saudi Arabia, is as follows:

• Colombo Water Supply and Sewerage, $26.64m

• Electric Power Transmission, $12.83m

• Mahaweli Ganga Downstream Development System "B" Left Bank, $22.66m

• Medical Services Development in Colombo, $14.93m

• Batticaloa-Tricomalee Road Development, $10.66m

• Epilepsy Hospital and Health Center, $32 Million

• Kaluganga Development, $46m

• Road Network Development, $60m

• Improvement of Peradeniya-Badulla Chenkaladi Road, $60m

• Development of Left Bank of Kaluganga, $45m

• Development of Wayamba University, $28m

• Medical Faculty of Sabragamuwa University, $50m

The total: $408.72 m