Govt Considers New Deal for Kadawatha-Mirigama Expressway Stretch

• CNL Reporter
• May 28, 2025
• News
• Govt
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The government is considering terminating the existing contract for the Kadawatha-Mirigama section of the Central Expressway, potentially paying over US$ 40 million in compensation to the project company.

A new agreement may be negotiated under revised terms, according to Deputy Transport and Highways Minister Dr. Prasanna Gunasena.

The current project, backed by a US$ 989 million loan from China EXIM Bank, has seen its estimated costs more than double since initial agreements were signed in 2015 and 2016. However, successive administrations have failed to execute it over the past decade.

Authorities are currently calculating the compensation due, and a final decision is expected within two weeks. Dr. Gunasena affirmed that the expressway stretch will be built, potentially as a new project.

The completed Mirigama-Kurunegala phase is operational, while construction on the Kurunegala-Kandy stretch is ongoing.