The Road Development Authority (RDA) of Sri Lanka is facing significant difficulties in accessing the necessary Chinese funds to complete Phase I of the Central Expressway, causing major delays in one of the country’s most crucial infrastructure projects. Despite the approval and release of funds for this project, complications surrounding financial mobilization have held back construction progress, threatening the timely completion of this key transportation artery.
In October 2023, the Ministry of Transport and Highways submitted a cabinet paper seeking approval to secure Rs. 7.5 billion to restart Phase I of the Central Expressway. However, as of now, the RDA has yet to receive the allocated funds to continue work, leaving the completion of this major infrastructure project uncertain.
The Central Expressway project, which spans 136.9 kilometers from Kadawatha to Dambulla, is split into four phases. The first phase, a 36.5-kilometer stretch from Kadawatha to Mirigama, was awarded to the China Metallurgical Corporation in 2015 under a loan from the Export-Import Bank of China. Initially, the cost of the project was estimated at $158 million, but delays in finalizing the terms of the loan, coupled with Sri Lanka’s failure to meet its obligation to fund 15% of the total loan, have led to significant cost overruns. By 2020, the cost of Phase I had ballooned to $194 million.
In 2018, Chinese Ambassador Cheng Xueyuan announced that the Chinese government had approved $1 billion in funding for the first phase of the expressway. However, despite this approval, ongoing economic challenges and the country’s financial instability have delayed the release of these crucial funds, which are necessary to complete the expressway.
Further complicating matters, the Sri Lankan government has already had to repay an advance of Rs. 8 billion paid to contractors in 2020, further exacerbating financial strain.
While Phase I has faced substantial delays, progress has been made on other sections of the expressway. To date, Section II, which spans from Mirigama to Kurunegala, is the only section that has been completed. Work on Section III, from Pothuhera to Galagedara, is ongoing but is being funded directly by the Sri Lankan government, as funding from China has been stalled. The remaining sections, from Kurunegala to Dambulla, still require significant financial backing and development.
Director General of the RDA, S.M.P. Suriyabandara, stressed the importance of completing all four sections of the expressway, noting that despite financial setbacks, there are no plans to abandon the project. The RDA continues to explore various avenues to secure the necessary funds and ensure the project’s timely completion.
The Sri Lankan government has expressed its commitment to the Central Expressway and its importance for national economic growth and development. President Anura Kumara Dissanayake recently met with Qin Boyong, Vice Chairman of the National Committee of the Chinese People’s Political Consultative Conference, to discuss the Central Expressway project. During this meeting, President Dissanayake urged for the expediting of work on the expressway under Chinese management, emphasizing the potential long-term benefits the completed project would bring to Sri Lanka’s infrastructure.
Qin Boyong reaffirmed China’s ongoing support for Sri Lanka and its willingness to collaborate on large-scale infrastructure projects, including the completion of the Central Expressway. Despite the challenges, both sides expressed optimism that the project would continue and that necessary steps would be taken to resolve the funding issues.
Beyond the Central Expressway, the RDA is involved in numerous other infrastructure projects, including the Southern Expressway, the Outer Circular Expressway Phase III, and the Port Access Elevated Expressway. The RDA is also working on the World Bank-funded Transport Connectivity and Asset Management Project. These ongoing initiatives are vital for enhancing Sri Lanka’s transportation network but are also facing challenges due to the current economic climate.
The Ruwanpura Expressway project, another key development initiative, has been temporarily halted, with funds diverted to more urgent projects. However, the RDA remains focused on completing existing projects before launching new ones, as these projects will provide vital connectivity for Sri Lanka’s growing population and economy.
The delay in accessing the Chinese funds for Phase I of the Central Expressway is a critical setback for Sri Lanka’s infrastructure development. The project is vital for improving transportation links across the island, boosting trade, and promoting economic development. While the government and the RDA continue to push for a resolution to the financial difficulties, the successful completion of the Central Expressway will require overcoming significant funding and logistical challenges. The international support from China, coupled with Sri Lanka’s ongoing efforts to secure alternative funding sources, remains crucial for the successful and timely completion of this essential infrastructure project.
