Sri Lanka’s 2026 budget paves the way for a nationwide expressway expansion, reviving stalled mega projects and launching new highways to reshape connectivity and regional trade.
Sri Lanka’s 2026 budget has earmarked a record Rs. 342,000 million for road and expressway development, outlining an ambitious plan to restart halted construction and expand the national road network. The proposals, presented by President and Finance Minister Anura Kumara Dissanayake, aim to complete key expressway segments and accelerate regional infrastructure growth.
Among the top priorities is the Central Expressway, which will see renewed work on its Kadawatha to Mirigama section. Construction had previously stalled due to financial constraints and the discovery of the rare ‘Pandu Karanda’ tree in Gampaha. The government has now allocated Rs. 66,150 million to resume the project, ensuring the long-delayed route finally moves forward.
The third phase of the Central Expressway, stretching from Pothuhera to Galagedara, will also progress under the new budget. The Pothuhera–Rambukkana section is expected to be completed by early 2027, supported by a Rs. 10,500 million allocation. The Rambukkana–Galagedara segment will commence under domestic funding, with a further Rs. 20,000 million provision, leveraging unspent loan repayments and additional financing from the Road Development Authority.
In addition, Rs. 1,000 million has been set aside for land acquisition for the Kurunegala–Dambulla Expressway, a new corridor that will enhance connectivity across the Central and North-Central Provinces.
The Ruwanpura Expressway project, connecting Kahathuduwa to Ingiriya, has also received attention. Construction of the 25-kilometer stretch was halted amid the economic crisis, but a new feasibility review will be conducted to reassess its impact and viability. To continue land acquisition, the budget allocates Rs. 1,500 million, reaffirming the government’s intent to complete the long-delayed route.
Two additional road initiatives have been proposed to ease traffic congestion in Colombo and Kandy. The Port Access Expressway Phase II, which will extend from the Port City to Marine Drive, has been granted Rs. 330 million for a feasibility study. This elevated road aims to reduce gridlock around the Lotus Roundabout and Galle Face area, improving urban traffic flow.
Meanwhile, preliminary studies will begin to widen the Katugastota–Galagedara Road, complementing the planned Kandy Multimodal Transport Hub. This development is expected to ease traffic congestion in Kandy city and improve access from surrounding regions.
The 2026 budget reflects the government’s renewed commitment to infrastructure-led growth, seeking to modernize transport, stimulate employment, and reconnect rural economies through efficient road networks.
