By. Ashoka Peiris
The ‘good governance’ government in 2015 awarded a contract to the Metallurgical Corporation of China (MCC) to build the first section of the expressway to the central region. The funding for this was provided through a loan from China’s Exim Bank.
Former officials said that the then government had set the total cost at Rs. 145.8 billion, or Rs. 4.5 billion per kilometre, in negotiations with MCC for the 32.5 kilometres section from Kossinna to Mirigama.
The objective of this project was to construct the first phase of the Central Expressway, from Colombo to Kandy in the Central Highlands, and the second phase, from Kadawatha to Mirigama.
The third phase of the Outer Circular Expressway being constructed by MCC was expected to complete a 5 km section from Kadawatha to Kosinna with savings negotiated by the government in 2015.
The then government also approved the immediate release of Rs. 500 million from the treasury to pay compensation for land acquisition.
Sri Lanka signed a $989 million project loan with China again in 2019 to construct the Central Expressway.
Chinese Export-Import Bank officials are scheduled to arrive in three days to discuss funding for the stalled first phase of Sri Lanka’s Central Expressway, Ports and Transport Minister Bimal Ratnayake of the current National People’s Power (NPP) government told Parliament last Friday.
Sri Lanka built a section from Mirigama with local funding and local contractors.
“I believe you know why China abandoned the project. During President Anura Kumara Dissanayake’s visit to China he made efforts to resume the abandoned project, hence the Chinese delegates are expected to arrive the day after tomorrow to start the first phase.” Rathnayake said
Deputy Minister of Finance Anil Jayantha said that the current government will spend Rs. 122 billion on the expressway project due to various irregularities committed by previous governments.