• Court-appointed liquidator already overseeing winding-up process of one entity
• Expressway Transport Company buses to be transferred to SLTB
• Liquidation of Maga Neguma entities and RDA’s luxury bus company approved

The Road Development Authority (RDA) has commenced the liquidation of several of its long-criticised subsidiaries, with a court-appointed liquidator already overseeing the winding-up process of one entity.

Speaking to The Sunday Morning Business, RDA Chairman T. Paskaran stated that the Cabinet of Ministers had approved the liquidation of the three Maga Neguma companies – Maga Neguma Road Construction Equipment Company Ltd., Maga Neguma Emulsion Production Company Ltd., and Maga Neguma Consultancy and Project Management Services Company Ltd. – along with the RDA’s luxury bus subsidiary, Expressway Transport Company Ltd. 

“There is a Cabinet decision to liquidate them and we have commenced the process,” he said.

Paskaran further revealed that the liquidation process was already underway, with a liquidator appointed by court to oversee the winding up of one of the companies.

With regard to the buses operated by the Expressway Transport Company, he noted that the Cabinet had decided to transfer them to the Sri Lanka Transport Board (SLTB).

The Cabinet decision, bearing No.23/0394/608/033 dated 23 March 2023, approved the liquidation of the three Maga Neguma entities and the RDA’s luxury bus company.

The Expressway Transport Company, incorporated on 6 May 2014 under the Companies Act No.7 of 2007, was a wholly owned subsidiary of the RDA established to operate passenger transport services on expressways. 

However, according to the Auditor General, the company had failed to present financial statements or supporting documentation for audit verification over an eight-year period from 2016 to 2023.

The former Road Planning and Development Company, which at one time existed under the RDA, was terminated to establish the Maga Neguma Construction Equipment Company, Maga Neguma Emulsion Production Company, and Maga Neguma Consultancy and Project Management Services Company in 2014.

The Maga Neguma Construction Equipment Company provided construction equipment and machinery to those engaged in road sector development, on recovery of hire charges, and undertook road construction works not exceeding Rs. 100 million awarded by the RDA.

Maga Neguma Emulsion Production Company was involved in the manufacture of emulsion, pre-mix, etc. and supplied the same for road sector development works.

Maga Neguma Consultancy and Project Management Services Company provided consultancy services for the preparation of bills of quantities, project proposals, etc.