Colombo, September 6: Sri Lanka’s long-delayed Central Expressway project is finally set to restart, with work on the crucial Kadawatha–Mirigama section (E04) expected to resume by September or October 2025, following renewed Chinese funding commitments.
The announcement came from Duminda Hulangamuwa, Senior Economic Adviser to the President, during the 171st Annual General Meeting of the Planters’ Association.
“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,” Hulangamuwa said.
Construction on the 37-km expressway section was initially launched on September 15, 2020, awarded to the Metallurgical Corporation of China (MCC), with a four-year completion goal.
However, work stalled in April 2022 when the China EXIM Bank suspended loan disbursements amid Sri Lanka’s severe economic crisis. At that point, only 36.38% of construction had been completed.
The project’s revival follows high-level diplomatic negotiations under two successive administrations:
-
Former President Ranil Wickremesinghe’s visit to China in October 2023 paved the way for renewed discussions on debt restructuring.
-
President Anura Kumara Dissanayake’s state visit in January 2025 finalized the funding arrangement, including a shift to repayment in Chinese Yuan (RMB) instead of US Dollars to reduce foreign exchange risks.
Authorities expect the resumption of this and other infrastructure projects to inject US$24 billion into the local economy, creating jobs and driving demand in the construction and services sectors.
The Central Expressway, linking the Western Province with Central and Northern regions, is a vital transport corridor. While Section 2 (Mirigama–Kurunegala) is already operational, completion of Section 1 is essential for a seamless high-speed route from Colombo. Officials now project a two-and-a-half-year timeline for completion once work resumes in full.
The restart also coincides with Sri Lanka’s legislative reforms, including the Port City Amendment Act, Public-Private Partnership (PPP) Act, and the SOE Restructuring Act, aimed at strengthening economic governance and attracting investment.