• RDA’s key focus is on completing Central Expressway

Sri Lanka’s once-rapid expressway expansion has hit a dead end with every major highway project, except for the Central Expressway Project (CEP), having been put on hold indefinitely, with no clear roadmap for resumption. 

Amid a deep financial crisis and strict fiscal controls backed by the International Monetary Fund (IMF), infrastructure spending has taken a backseat, leaving commuters, businesses, and investors wondering when – or if – these expressway dreams will ever be realised.

No new expressway projects have been introduced since 2019, leaving Sri Lanka’s transport infrastructure stagnant while regional counterparts race ahead with ambitious development. With each passing year of inaction, the country’s road network falls further behind and what was once a bold push for progress now feels like a distant and unfinished promise. 

Despite growing concerns over Sri Lanka’s stalled expressway network, authorities remain uncertain about the resumption of these critical projects. 

Indefinite timeline

Speaking to The Sunday Morning, Road Development Authority (RDA) Chairman T. Paskaran stated that both the Ruwanpura Expressway Project (REP) and the Elevated Highway Project (EHP) were currently under “temporary suspension,” but offered no clear timeline for their revival. 

According to RDA Expressway Management and Projects Additional Director General (ADG) Anuradha Hettiarachchi, the Government is currently awaiting approval from the IMF before seeking new funding for infrastructure projects. As things stand, the country lacks the financial capacity to take on further expressway development.

When asked about potential investor interest, he confirmed that the Government’s current focus remained solely on completing the CEP. 

Construction on CEP Section I, spanning from Kadawatha to Mirigama, will continue with ongoing negotiations between the Government and the Export-Import Bank of China (China Exim Bank). A delegation of Chinese officials is currently in Sri Lanka conducting road construction inspections, signalling some progress on this long-delayed project.

Meanwhile, land acquisition for the REP is still underway, with no clear indication of when actual construction will resume. 

“We are planning to develop alternative roads to enhance connectivity in the region since the project will not commence soon,” Hettiarachchi added, suggesting that authorities were shifting their focus to smaller-scale improvements instead of large expressway projects.

The fate of the EHP remains equally uncertain, entangled in an ongoing legal battle. The Central Environmental Authority (CEA) has yet to grant approval, with its decision depending on the outcome of court proceedings. Although discussions regarding potential alternative routes for the highway have taken place, no concrete plans have been finalised.

Challenges facing expressway projects  

Sri Lanka’s major expressway projects have been on hold for the past few years as a result of the country’s ongoing economic crisis and the need for debt restructuring. The RDA is awaiting approval from the External Resources Department (ERD) to resume construction on key infrastructure projects, including the REP, the CEP, and the EHP.

The REP, which is expected to connect the Western Province with the Sabaragamuwa Province, was halted midway. The project is divided into three phases, with Phase I being awarded to Maga Engineering following the removal of a Chinese contractor due to financial concerns. Construction is expected to resume once approval is received.

In relation to the CEP, which spans four sections, Section I (Kadawatha to Mirigama) is being constructed by a Chinese company with funding from the China Exim Bank, while Section II has been completed by local contractors. Sections III (Pothuhera to Galagedara) and IV (Kurunegala to Dambulla) are still pending, with interest from Japanese investors and discussions about the involvement of a UK-based contractor for Section IV.

The EHP, connecting the New Kelani Bridge to Athurugiriya, is facing challenges, including five pending court cases, concerns over land acquisition, and the impact on surrounding settlements and farmland. The RDA is exploring alternative options including the possibility of a Build-Operate-Transfer (BOT) investment model.

Additionally, several other road projects including the Transport Connectivity and Asset Management Project (TCAMP), the Southern Road Connectivity Project (SRCP), and the Northern Road Connectivity Project (NRCP) have also been delayed. 

Many of these projects were initially set to be completed by 2019 and 2020, but are now facing significant setbacks, partly due to financial constraints and the complex approval processes related to international funding.

‘On hold indefinitely’ 

While the RDA plans to restart these crucial expressway projects as soon as possible, the economic situation and ongoing restructuring negotiations with international creditors have created considerable uncertainty regarding their timeline and funding sources.

Responding to a question posed by The Sunday Morning, Paskaran acknowledged that he had no clarity on the IMF’s restrictions regarding seeking additional funding, but confirmed that the expressway projects were currently on hold without a definitive timeline. 

“The projects are on hold indefinitely,” he stated, reflecting the uncertainty surrounding their future.

In relation to cost escalations, he explained that the cost adjustments would be determined according to the formula introduced by the Construction Industry Development Authority (CIDA). 

“Negotiations will be held this week with Chinese officials,” Paskaran said regarding CEP Section I, adding that the final decision on who would bear the cost escalations would be made following these discussions. 

Infrastructure plans dependent on IMF

Sri Lanka’s ability to secure funding for large-scale infrastructure projects, including expressways, is closely tied to the country’s adherence to the IMF’s economic reform programme. The IMF has emphasised fiscal consolidation and prudent capital spending as essential measures to restore fiscal stability and manage debt sustainability.

In December 2023, the Asian Development Bank (ADB) announced plans to provide Sri Lanka with approximately $ 600 million in budget support, contingent upon the IMF’s approval of the next tranche of funding. This underlines the interconnectedness between Sri Lanka’s international financial assistance and the IMF’s backing of the country’s economic policies. 

Therefore, the RDA’s efforts to secure further funding for expressway development have remained on hold, awaiting IMF approval, which continues to play a central role in Sri Lanka’s infrastructure ambitions.