Sri Lanka’s Central Expressway project is set to resume under the same Chinese company and financing bank that initially started the stalled development. Despite earlier proposals to engage local contractors, President Anura Kumara Dissanayake’s administration has chosen to proceed with the state-owned Metallurgical Corporation of China (MCC) and China Exim Bank, citing practical and financial reasons. The government now expects to restart the long-delayed Kadawatha–Mirigama segment next month, hoping to salvage rusting infrastructure and recoup lost time and costs.
President Anura Kumara Dissanayake has advised that local companies interested in bidding for large-scale development projects such as expressways must secure financing from foreign institutions rather than relying on domestic banks. His reasoning is that borrowing from state banks for major projects could delay funding for smaller, yet crucial, rural infrastructure efforts.
This directive coincides with the government’s decision to recommence the Central Expressway’s first phase, from Kadawatha to Mirigama, with China’s state-owned Metallurgical Corporation of China Limited (MCC) the same company initially awarded the contract. Funding will once again be sourced through China Exim Bank.
Although the Road Development Authority (RDA) had proposed handing the stalled project over to local bidders, the government opted to continue with MCC for logistical and financial efficiency. Deputy Highways Minister Prasanna Gunasena explained that since MCC was already the designated party under the original loan agreement with China Exim Bank, it made practical sense to retain them. A revised interest rate and repayment structure,now in Chinese currency instead of U.S. dollars were also negotiated.
According to Gunasena, continuing with MCC allows for reuse of existing designs and machinery, reducing startup costs. However, he acknowledged that delays since April 2022, when China Exim Bank suspended disbursements following Sri Lanka’s debt default have caused significant damage to unfinished infrastructure, with parts already corroded or collapsed. The government has incurred around Rs. 20 million in late fees so far.
The 37-kilometre Kadawatha–Mirigama stretch, signed under a $989 million loan agreement in March 2019 to cover 85% of the project cost, represents the first phase of the broader Central Expressway initiative. Officials now anticipate the project will restart by next month.
well done Hon ministers Presanna Gunasena and Bimal Ratnayaka and HE the President. Commuters to/from Panadura will be beholden to HE the president and Hon ministers if the Marine drive is started to Panadura From Dehiwala., Many commuters who are undergoing immense difficulties will contribute [large and small ]donations if requested via a web page of RDA to ease the burden of the Government