• Previous regime’s Sahasya Investments never formally incorporated
• Maga Neguma companies and transport arm to be wound up
• RDA balance sheet restructuring to proceed under different approach

The proposal under the previous regime to restructure the Road Development Authority’s (RDA) project-related assets and liabilities under the proposed Sahasya Investments Ltd. (SIL), a 100% Treasury-owned company, has been abandoned, the authority reveals.

Speaking to The Sunday Morning Business, RDA Chairman T. Paskaran revealed that, despite announcing its intention to restructure the project-related assets and liabilities of the RDA under SIL, the previous regime had failed to incorporate the company. 

“SIL was never properly formed,” he stated.

He further revealed that the incumbent Government did not intend to proceed with the previous regime’s proposal and had abandoned the approach that had been preferred by the former administration for restructuring the RDA’s balance sheet.

However, commenting on the restructuring of the RDA balance sheet, he revealed that they would be liquidating several small subsidiary companies operating under the RDA. 

These include the Maga Neguma Road Construction Equipment Company Ltd., Maga Neguma Emulsion Production Company Ltd., and Maga Neguma Consultancy and Project Management Services Company Ltd., in addition to a transport company that operated under the RDA.

SIL was originally proposed in October 2020 for the purpose of managing highways. Thereafter, on or around 2021, it was speculated that the Government was considering listing the highways and related assets on the Colombo Stock Exchange (CSE) through SIL.

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.

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

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