Loans for mega projects on hold

15 March 2017 09:08 am

The extension of the Central Expressway up to Dambulla had been put on hold because of a decision by the Government to stop external borrowings for any project hereafter, it is learnt.

The Cabinet Committee on Economic Management has taken this decision a week ago.

Accordingly, the Government has also shelved the implementation of the Ruwanpura Expressway project. A government source told the Daily Mirror that the Government would opt for projects on the Build, Operate and Transfer (BOT) model only.

The source said this was a temporary move taken to tide over the crisis involving debt servicing at the moment.

“Once we come out of it, we can opt for development loans,” the source said.

However, the source said that the Government would proceed with the construction of the Central Expressway linking Colombo with Kandy via Kurunegala. (Kelum Bandara)