Unique Compelling Description: After three years of stagnation, Sri Lanka’s Central Expressway project is finally back on track with Chinese funding, promising jobs, growth, and a long-awaited link from Colombo to the central provinces.
Construction on the long-delayed first section of the Central Expressway (E04), stretching from Kadawatha to Mirigama, is set to restart by September or October following the revival of Chinese funding. The move marks a major breakthrough in Sri Lanka’s infrastructure development after years of setbacks caused by the financial crisis.
Duminda Hulangamuwa, Senior Economic Adviser to the President, confirmed the restart during his keynote at the 171st Annual General Meeting of the Planters’ Association. He stated that the government had secured renewed financial assistance from China to complete the crucial 37-kilometre stretch. “We have once again gone back to China for financial assistance… if everything goes well, the first phase… should start by about September or October this year,” he said.
The project, awarded to the Metallurgical Corporation of China (MCC), began on September 15, 2020 with a four-year completion target. However, construction stalled in April 2022 when the China EXIM Bank suspended loan disbursements during Sri Lanka’s economic collapse. At that point, only 36.38 percent of the physical work had been completed.
The revival follows years of diplomatic negotiations. Former President Ranil Wickremesinghe’s visit to Beijing in October 2023 paved the way for debt restructuring discussions, and President Anura Kumara Dissanayake’s state visit in January 2025 finalized the disbursement of funds. A significant change in the loan terms means repayments will now be made in Chinese Yuan (RMB) instead of US Dollars, reducing foreign exchange pressure on Sri Lanka.
Officials estimate that restarting the Central Expressway and other planned infrastructure projects will inject as much as US$24 billion into the domestic economy. This will stimulate the construction sector, create jobs, and boost demand for building materials and services.
The expressway is a critical part of Sri Lanka’s transport network, connecting the Western Province to the central and northern regions. While Section 2 (Mirigama to Kurunegala) is already operational, completing Section 1 is essential to creating a seamless high-speed link from Colombo. Authorities now expect the project to take around two and a half years to finish once work resumes.
The restart coincides with the government’s legislative reforms, including the Port City Amendment Act, a new Public-Private Partnership (PPP) Act, and the SOE Restructuring Act, all aimed at spurring investment and economic activity.
