Sri Lanka and China have reportedly agreed to finalize, in the near future, a revised agreement to resume Chinese financial assistance for the Kadawatha–Mirigama section of the Central Expressway.Accordingly, construction work on the project is expected to recommence within the next few weeks.

In this regard, a high-level delegation led by Mr Yang Dongning, Vice President of the China Export-Import Bank (China EXIM Bank), visited Sri Lanka this week and held discussions with government representatives, including Deputy Minister of Finance and Planning Mr Anil Jayantha Fernando and Minister of Foreign Affairs Mr Vijitha Herath.During the discussions, attention was focused on the terms of the revised financing agreement for the project, which is funded by the China EXIM Bank. The parties also discussed the settlement, under concessionary terms, of penalties arising from project delays and the increased costs resulting from the depreciation of the Sri Lankan rupee.The talks are said to have concluded successfully, and another delegation from the China EXIM Bank is expected to visit Sri Lanka later this month with the revised agreement.

Under the project, the China EXIM Bank will provide US$500 million, while the Government of Sri Lanka will contribute US$438 million. The project is scheduled to be completed by September 2028.Construction work will continue to be carried out by Metallurgical Corporation of China (MCC).Construction on the 37-kilometre Kadawatha–Mirigama section has been suspended since 2022, with approximately 51 per cent of the project completed to date.

Following the resumption of construction, the Government expects to complete 65 per cent of the project by the end of this year and between 90 and 95 per cent by the end of 2027, with the remaining work to be completed in 2028.