Sri Lanka highway assets for sale to Chinese firm?

The Sri Lankan Government is setting out plans to build three elevated highways to reduce traffic congestion in capital Colombo. The highways will be built in the Metropolitan Area and will provide access to the new Southern Expressway, the Outer Circular Highway and the Colombo -Katunayake Expressway under construction.

A key financing package has been secured for the first phase of Sri Lanka’s Central Expressway project. Funding worth US$1 billion is being provided by China’s Exim Bank for the highway. Construction of this route will improve transport between the port of Colombo and the port of Hambantota.

Construction of a new expressway connecting Hambantota with Matara is now underway in Sri Lanka. This new expressway will link with the existing southern expressway that runs between Matara and Colombo through the southern town of Galle. The new Hambantota-Matara expressway is cost US$180 million to construct. Funding for the project has been provided by the Exim Bank of China.

China Merchants Holdings (International) Company and China Merchants Hua Jian Highway Investment Company have Sri Lankan government approval to build and operate an expressway from the capital, Colombo, to the central part of the country. With the recently won approval, both companies would plan, design, finance, build and operate the first section of the US$4.5 billion Northern Expressway system. The $1.5 billion first section of the expressway will be built in four stages, namely from Ambepussa to Kandy