ECONOMYNEXT – Sri Lanka’s Cabinet of Ministers has approved the first stage of the delayed Central Express Highway’s third phase after competitive bidding, Cabinet Spokesman and Media Minister Nalinda Jayatissa said.
The delayed third phase is now being built from state funds after Japan withdrew from the funding.
The stage 1 of the third part of the Central Expressway Project from Pothuhara to Galagedara has been divided into 19 packages, Minister Jayatissa said.
The first 13.8 km of expressway requires the completion of aggregate base course, asphalt concrete, road marking, installation of signboards, construction of buildings for the operation of the expressway, and installation of toll collection systems in order to complete the first phase.
The government called for national competitive bids under 3 construction packages for the construction work.
The Cabinet of Ministers has approved the proposal to award the contract to the lowest responsive bidder, Maga Engineering (Pvt) Ltd., for all the packages after appraisal of all the bids received under the recommendations submitted by the high-level standing procurement committee, the Minister said.
The Phase 1, spanning approximately 37 km from Kadawatha to Mirigama, has also faced significant delay with the estimated cost has more than doubled to Rs. 350 billion by early 2025 due to delays, currency depreciation, and compensation claims from the Chinese contractor, Metallurgical Corporation of China (MCC), officials say.
Phase 3 initially had Japanese backing—through the Bank of Tokyo‑Mitsubishi and contractors like Taisei Corp. and Penta Ocean.
However, bid procurement stalled: only one bid was submitted, and it lacked a bid bond, delaying the process.
As a result, the Japanese withdrew, citing procedural irregularities and lack of firm commitments from Sri Lanka, leading to an indefinite pause in Japanese participation. (Colombo/August 19/2025)
