Top EXIM Bank delegation here to finalise revised agreement on Kadawatha-Mirigama stretch; work to resume within weeks By Damith Wickremasekera
Sri Lanka and China are set to finalise an amended agreement to fund the Central Expressway’s Kadawatha–Mirigama stretch, with work expected to resume within weeks, a senior government official said.
A high-level China Export-Import Bank (China EXIM Bank) delegation led by Vice President Yang Dongning was in Sri Lanka this week to discuss the new agreement and met with senior government figures, including Deputy Finance and Planning Minister Anil Jayantha Fernando and Foreign Affairs Minister Vijitha Herath.
The talks centred on, among other matters, the modalities of the revised financing agreement for the China EXIM Bank-funded project. They include concessionary terms on which to pay the penalty fee for the delay in the project as well as the increased costs due to the depreciation of the rupee over the years.
“Due to the delay in the projects, the costs have increased, and we have to pay a penalty fee as well. These are being negotiated so that we can pay back in a concessionary manner,” a government source said.
He said the talks with the EXIM Bank representatives were successful, and hence the government is hopeful of the work resuming shortly. Another delegation from the EXIM Bank will visit the country at the end of the month along with the revised agreement containing repayment modalities discussed and finalised this week, the source said.
The project will resume with USD 500 million from China EXIM Bank and USD 438 million from the government. The project is expected to be completed by September 2028. Metallurgical Corporation of China (MCC) will remain as the contractor.
Work on the 37-kilometre stretch of the Kadwatha-Mirigama stretch of the Central Expressway has remained stalled since 2022. Around 51% of the project is completed by now, with 65% expected to be completed by the end of the year after the work resumes. About 90-95% is expected to be completed by the end of 2027 and the rest in 2028. Government sources said they are determined to resume the project as soon as possible and said the delay in finalising a new agreement was because it had to be thoroughly negotiated so as to cover all necessary aspects.