Sri Lankan officials are set to meet representatives from China’s Export-Import Bank (Exim Bank) today to discuss the resumption of the Central Expressway construction, Transport and Highways Minister Bimal Rathnayake said on Friday. The discussions aim to restart the much-anticipated first phase of the Expressway project, which has faced significant delays in recent years.
Speaking during the committee stage debate on the Budget, Minister Rathnayake said that a section of the Expressway from Mirigama was constructed with local funding and contractors. However, the project stalled when the original construction companies abandoned the work. The Government has since worked to revive the initiative, with President Anura Kumara Dissanayake raising the issue during his visit to China.
Rathnayake said that during the President’s visit to China, as well as through subsequent efforts, officials of the Exim Bank of China will arrive today with hopes of revitalising the project. The Central Expressway is estimated to cost approximately Rs. 122 billion. The loan agreement for the first phase of the project, valued at US$ 989 million, was signed in March 2019 between the China Exim Bank and Sri Lanka, with construction commencing in September 2020. However, the project faced setbacks after Sri Lanka defaulted on its debt, causing a temporary cessation of work on the Kadawatha to Mirigama section.
This delay had resulted in financial repercussions for Sri Lanka. President Dissanayake addressed the issue during a public rally earlier this year, adding that the country had to pay significant damages for the halted project. He said that negotiations are ongoing with the Chinese Government to reduce the compensation costs.
“The country had to pay damages. The loan is given by one agency and the contract is carried out by another. Their equipment is deteriorating, and what has already been built is also crumbling. We are talking to the Chinese Government to at least halve that compensation,” the President said.
Minister Rathnayake also highlighted the ongoing efforts to resume several other stalled infrastructure projects in Sri Lanka, many of which had been delayed due to corruption or mismanagement. These include key initiatives such as the Port Access Elevated Highway, Kandy Multimodal Transport Terminal, East Container Terminal, Mattala Airport, and the Bandaranaike International Airport. He expressed optimism that these projects would soon move forward with the support from Japan.
In an additional update, Rathnayake said that the authorities are working to introduce card payment facilities for drivers on the Southern Expressway, with plans to roll out the system by April. The Road Development Authority has pledged to implement the system, which is expected to enhance convenience for motorists.
