Funding from China’s Export-Import (Exim) Bank could resume by September or October to continue the construction of the long-delayed Central Expressway Project (CEP), the Road Development Authority (RDA) announced.
RDA Chairman T. Paskaran confirmed that negotiations with the bank were ongoing, in the aftermath of disbursements being suspended due to Sri Lanka’s economic crisis.
“Negotiations with the donor are currently ongoing and there is a strong likelihood that funding could resume by September or October,” stated Paskaran.
The suspension of these disbursements was the primary reason for the significant delays that have plagued the ambitious infrastructure project.
In the event of continued delays in foreign funds, the Government was prepared to utilise local funds as a contingency, Paskaran revealed.
Discussions are already underway with the existing contractor for Section I (Kadawatha to Mirigama) on revised terms. Should an agreement not be reached, the RDA is considering re-tendering the project to new local contractors, with the option of terminating the current project agreement remaining on the table.
Paskaran clarified that, to date, no compensation claims had been submitted or paid in relation to potential contract termination.
Regarding the progress of construction, Paskaran provided an updated timeline for Phase 3 (Pothuhera to Galagedara), stating that it was now expected to be completed by mid-2026.
However, the commencement of Phase 4 (Kurunegala to Dambulla) remains undecided.
“No final decision has been taken on its commencement,” Paskaran asserted, adding that this section would only proceed once Phase 3 was fully completed.
This contrasts with recent Cabinet approval in June to resume land acquisition and suspended construction activities for Section IV.
Addressing concerns about land acquisition and compensation for affected landowners, Paskaran maintained that the RDA was diligently following the Land Acquisition Act. He acknowledged that the process was inherently time-consuming due to procedural requirements, but strongly denied any funding issues for land payments.
“The Government is committed to paying compensation and proceeding with the necessary acquisitions,” he reiterated, dismissing reports of financial difficulties in securing funds for these payments.