Sri Lanka will need an additional Rs. 1.4 trillion to complete its delayed mega development projects by 2027, according to a government report. With over 200 large-scale projects at stake, delays tied to contractors, procurement, and funding processes are threatening national progress. Can the government meet its new deadline?
The Sri Lankan Cabinet has approved a sweeping new proposal by President Anura Kumara Dissanayake to complete all delayed mega development projects by their revised deadlines. However, the effort will come at a steep cost an additional Rs. 1.4 trillion will be needed before the end of 2027.
According to the Department of Project Management and Monitoring under the Ministry of Finance, this additional funding is essential to prevent further overruns and finish 226 large-scale projects initiated before the end of 2024. The estimate is based on the department’s latest quarterly review, presented at the Cabinet meeting held last Monday.
Under the newly enacted Public Finance Management Act of 2024, the department is legally mandated to produce quarterly assessments on the financial and physical status of all major development projects. The most recent report analyzed progress up to the end of March 2025 and highlighted significant implementation challenges across sectors.
The findings indicate that out of 205 currently active projects, 145 including 74 that were supposed to be completed by the first quarter of 2025 are now scheduled for completion this year. An additional 24 projects are due for completion in 2026, while another 19 are targeted for completion in 2027. Only five projects have timelines that extend beyond that year.
According to the ‘Fourth Quarter Progress of Large-Scale Development Projects 2024’ report, the cumulative estimated cost of the 226 ongoing projects stands at Rs. 3.6 trillion. Of this, Rs. 1.4 trillion still remains unfunded and must be secured to bring all but five projects to completion by the end of 2027.
The report cited three persistent causes for delays: poor contractor performance, insufficient disbursement of required funds, and prolonged procurement processes. Interestingly, it clarified that while the Treasury had not delayed fund releases, actual spending was impeded because project bills were not submitted on time, mainly due to the slow pace of physical work on the ground.
Furthermore, procurement setbacks, scope revisions, and decisions made by international funding agencies have compounded delays. Sectors hit hardest by overdue work include education, water supply, energy, health, and irrigation core public service areas crucial for economic and social development.
Despite the mounting challenges, the government remains committed to ensuring the timely delivery of these infrastructure projects. With an unprecedented Rs. 1.4 trillion gap to bridge, the clock is ticking fast toward 2027.
