• Rambukkana-Galagedara stretch to commence this year
• Pothuhera-Rambukkana stretch scheduled for completion by 2027
• Kadawatha-Mirigama works resume under Maga and China MCC
• China Exim Bank resumes funding on revised $ 500 m in RMB terms
• Govt. to borrow $ 438 m to cover remaining project costs

The Government has revealed plans to commence the construction of the Rambukkana-Galagedara section of the Central Expressway within this year.

Speaking to The Sunday Morning Business, Deputy Minister of Transport and Highways Dr. Prasanna Kumara Gunasena revealed that the construction of the Pothuhera-Rambukkana section of the expressway was scheduled for completion by September 2027, while work on the remaining Rambukkana-Galagedara section was expected to commence within the year.

Responding to a question on the expected investment for the Rambukkana-Galagedara section of the Central Expressway, he stated: “We will have to issue a tender and finalise it.”

The Deputy Minister further revealed that the construction of the Kadawatha-Mirigama section of the expressway, which resumed last month, would be undertaken in two phases.

“The Kadawatha-Mirigama section has two parts. One is the 500 m length of road up to the starting point (of the expressway), which is under construction by Maga Engineering. The remaining part, which is around 37 km, is under construction by Metallurgical Corporation of China Ltd. (MCC),” he stated.

The original credit facility for the Kadawatha-Mirigama section signed in 2019 with the China Export-Import (Exim) Bank was for $ 989 million, of which only $ 51.5 million was disbursed. 

With the country’s sovereign default in 2022, disbursements were suspended, halting construction when just 36.38% of the physical work had been completed.

After protracted negotiations, China Exim Bank had agreed to resume funding, but on new terms: instead of the remaining $ 938 million, Sri Lanka will now receive only $ 500 million, and that too in RMB rather than in US Dollars.

The remaining $ 438 million will be provided by the Government of Sri Lanka. The ‘Government share,’ originally meant to be financed domestically as 15% of the project’s cost, is now also expected to be covered through new borrowings.