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Sri Lanka’s long-delayed Central Expressway (E04) project is set to make a major comeback this year, with construction on Section 1 — from Kadawatha to Mirigama — scheduled to restart by September or October, following renewed Chinese financial support.
The announcement was made by Duminda Hulangamuwa, Senior Economic Adviser to the President, during his keynote address at the 171st Annual General Meeting of the Planters’ Association.
Hulangamuwa confirmed that the government has finalized funding from China EXIM Bank for the 37-kilometre 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 project, awarded to the Metallurgical Corporation of China (MCC), originally commenced in September 2020 with a four-year completion target. However, construction came to a halt in April 2022 when loan disbursements were suspended amid the country’s economic crisis. By then, only 36.38% of the physical work was complete.
Diplomatic efforts played a key role in reviving the project. Discussions during former President Ranil Wickremesinghe’s 2023 visit to China, followed by President Anura Kumara Dissanayake’s state visit in January 2025, secured the final agreement. A crucial outcome was restructuring the loan to be repaid in Chinese Yuan (RMB) instead of US Dollars, reducing Sri Lanka’s foreign exchange risk.
The recommencement of Section 1 — alongside other infrastructure initiatives — is expected to inject over US$24 billion into the economy, creating jobs, stimulating the construction sector, and accelerating growth.
While Section 2 (Mirigama–Kurunegala) is already operational, Section 1 remains vital for ensuring a continuous high-speed link between Colombo, the Central Province, and the Northern regions. Authorities estimate completion within two and a half years from full-scale resumption.
This infrastructure revival aligns with the government’s broader economic reforms, including the upcoming Port City Amendment Act, a new Public-Private Partnership (PPP) Act, and an SOE Restructuring Act, all aimed at strengthening investor confidence and boosting national development.
