A stalled expressway, a single tree, and a ballooning compensation claim now expose how administrative delays can spiral into billion-rupee liabilities for Sri Lanka’s infrastructure ambitions.
A prolonged construction halt on Sri Lanka’s Central Expressway has escalated into a major compensation demand, underlining how unresolved administrative decisions can trigger serious financial consequences for nationally significant development projects.
Sri Lanka is now facing a compensation claim nearing Rs. 1 billion from a Chinese construction company involved in the Central Expressway project. The demand stems from a multi-year delay reportedly caused by the failure to remove a Padukaran tree located near the Daraluwa railway station in Gampaha. What began as a procedural and environmental issue has since evolved into a costly dispute, drawing renewed attention to how infrastructure timelines can unravel when approvals and clearances stall.
Director Engineer R.M.J.N. Ratnayake, speaking to a local newspaper, confirmed that the Chinese contractor has formally requested Rs. 980 million as compensation for losses incurred during the extended construction stoppage. He noted that the final compensation figure has not yet been officially finalized, as calculations are still ongoing. However, he acknowledged that the amount currently under assessment is significant and could increase once all indirect and associated costs are fully accounted for.
According to officials familiar with the project, construction work on this specific section of the Central Expressway was effectively suspended from April 2022 until September 2025. The delay occurred because the Padukaran tree situated near the railway line was not removed within the required timeframe. As a result, the contractor was unable to proceed with scheduled construction activities, bringing progress to a complete standstill for more than three years. This prolonged inactivity directly contributed to escalating project costs and contractual claims.
During the suspension period, heavy machinery, construction vehicles, and other specialized equipment belonging to the Chinese company remained idle. Engineers involved in the project revealed that this equipment had to be parked and stored across multiple warehouses throughout Sri Lanka, adding to maintenance and logistical expenses. Once approval was finally granted to resume work, the contractor reportedly required an additional three months to recommission machinery, reorganize logistics, and prepare equipment that had been dormant for an extended period.
Officials estimate that Sri Lanka’s losses linked to the delayed tree removal and construction suspension now approach Rs. 1,000 million. The situation has become a striking case study in how relatively small unresolved administrative issues can snowball into major financial liabilities. It also highlights the vulnerabilities within large-scale infrastructure projects, particularly those involving foreign contractors, complex environmental approvals, and rigid contractual obligations.
As Sri Lanka continues to pursue ambitious infrastructure development, the Central Expressway episode serves as a cautionary reminder that timely decision-making and coordinated governance are critical to preventing avoidable economic fallout.
