The World Bank said yesterday that it approved a credit of US$ 98 million from its concessionary lending arm, International Development Association (IDA) in additional finance to support the Sri Lankan government's efforts to improve its national highways, designed to lower transportation costs and travel times. The additional finance will be mostly used to cover cost-overruns mainly due to the unprecedented oil price increase in the world market that has led to the escalation of prices in oil-based materials, a press release from WB said. The additional financing to the Road Sector Assistance Project, an IDA credit of US$100 million approved by the Bank in December 2005, will continue to support rehabilitation of national roads. Ms. Naoko Ishii, World Bank Country Director for Sri Lanka said, "An efficient national road system is crucially important to boost economic growth and reduce regional inequality in Sri Lanka.' So far the project has improved 150 km of national roads, and it is on track to meet the goal of reducing highways in poor condition from 52 percent in 2005 to 35 percent by 2010. Sri Lanka's national roads carry over 70 percent of the traffic in the country and are vital for the movement of people and goods. However, the roads are in poor condition due to uncontrolled roadside development, years of neglect and poor road maintenance.