• Funding proposal submitted for Rs. 7.5 b
• 85% of project funded by Chinese loan

The resumption of the Central Expressway’s Section I from Kadawatha to Mirigama remains in limbo as the Ministry of Transport and Highways awaits Cabinet approval for the necessary funding.

Ministry Secretary K.D.S. Ruwanchandra confirmed to The Sunday Morning that a proposal requesting Rs. 7.5 billion had been submitted and the project would move forward once the Cabinet gave the green light.

“It has to be approved by the Cabinet. Once it is approved, we will proceed,” he stated.

The project has faced significant setbacks since its inception. 

The 36.5 km stretch from Kadawatha to Mirigama, initially contracted to China’s Metallurgical Corporation in 2015, was expected to cost approximately Rs. 158 million, funded primarily through a loan from the Export-Import (Exim) Bank of China.

As reliably learnt by The Sunday Morning, prolonged delays in finalising loan conditions and the Government’s inability to meet its share of 15% of the total loan amount resulted in substantial cost overruns. 

As a result of the delays, the projected expenditure for Section I has escalated from $ 158 million to $ 194 million by 2020. 

Due to this the Government had paid an additional Rs. 8 billion advance in 2020 to activate the Chinese loan. 

The planned four-year project began in 2020 but was quickly suspended due to Sri Lanka’s economic crisis.

The 37 km stretch includes interchanges in Gampaha, Mirigama, and Veyangoda, which will play a critical role in connecting Colombo to the central regions.

Meanwhile, local funding is sustaining the construction of Section III from Pothuhera to Rambukkana, according to Ruwanchandra.

However, no timeline has been set for Section IV, as the ministry is yet to secure funds for this final leg of the Central Expressway Project.

“The work on Section IV has been stopped. We won’t be proceeding with the construction of Section IV yet, as we currently don’t have the funds to start it,” he added.