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The first section of the Central Expressway to restart in September with revived Chinese funding
Construction on the long-awaited first section of the Central Expressway (E04), from Kadawatha to Mirigama, is set to resume by September or October with the return of Chinese funding, marking a significant step forward for the nation’s infrastructure development after years of costly delays.
The confirmation came from Duminda Hulangamuwa, a Senior Economic Adviser to the President, during his keynote address at the 171st Annual General Meeting of the Planters’ Association.
Hulangamuwa announced that the government has finalized financial assistance from China to launch the crucial 37-km stretch.
“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,” he said.
The resumption breathes new life into a project which was stalled for over three years amid the country’s severe economic crisis. Construction on this vital artery, awarded to the Metallurgical Corporation of China (MCC), originally commenced on September 15, 2020, with a four-year completion target.
However, work came to an abrupt halt in April 2022 when loan disbursements from the China EXIM Bank were suspended due to the nation’s financial turmoil. At the time of the suspension, only 36.38 percent of the physical construction had been completed.
The breakthrough follows sustained high-level diplomatic efforts by two administrations. The groundwork was laid during former President Ranil Wickremesinghe’s visit to China in October 2023, where broad discussions on debt restructuring opened the door for re-engagement on stalled projects.
Building on this, the revival of the expressway became a crucial agenda item during President Anura Kumara Dissanayake’s state visit to China in January 2025. News reports from that period confirmed that specific discussions were held to finalize the disbursement of funds from the China EXIM Bank for the Kadawatha-Mirigama section, ultimately securing the project’s path to resumption.
A significant outcome of these negotiations was the restructuring of the loan’s financial terms. The repayment will now be made in Chinese Yuan (RMB) instead of US Dollars, a key adjustment aimed at mitigating Sri Lanka’s foreign exchange risk.
The commencement of this and other planned infrastructure projects is expected to inject between US$24 billion into the market. This capital infusion is expected to provide a major stimulus to the domestic construction industry, creating jobs and driving demand for materials and services.
The Central Expressway is a key project designed to link the Western Province with the Central and Northern regions. While Section 2 (Mirigama to Kurunegala) is already operational, the completion of Section 1 is critical for creating a seamless high-speed corridor from Colombo. Based on the remaining work, authorities estimate a new completion timeline of approximately two and a half years from the full-scale resumption of construction.
This infrastructure push is a core component of the government’s broader strategy to spur economic activity. Hulangamuwa highlighted that the project’s launch coincides with a major legislative agenda, including the planned enactment of the Port City Amendment Act, a new Public-Private Partnership (PPP) Act, and an SOE Restructuring Act this month.
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