Sri Lanka Resumes Highway Project with $500 Million Chinese Loan

Sri Lanka has resumed a major highway project after securing a $500 million loan from China, the first financial aid from its largest creditor since the nation defaulted on its debt three years ago. The highway, which links Colombo to Kandy, was initially launched in 2016 but faced a halt last year due to financial constraints.

The Central Expressway aims to enhance connectivity between Colombo and Kandy, accelerating economic activities. Initially begun in 2016, the project stalled due to financial challenges amid the country's worst economic crisis, with only one-third of the stretch completed. The government's focus is now on completion by April 2028, as stated by transport minister Bimal Rathnayake.

During a ceremony to relaunch the project, President Anura Kumara Dissanayake expressed optimism about the country's economic recovery. Benefiting from a $2.9 billion IMF bailout and a recent rework of $10 billion bilateral debt, Sri Lanka anticipates a 5% growth. The Chinese Ambassador termed the highway a symbol of strong bilateral ties.