China happy with extension of Southern Expressway; says a big socioeconomic boost

China’s Embassy yesterday expressed its satisfaction over the commencement of work on the Matara-Hambantota segment of the Southern Expressway by the new Government. 

The inauguration ceremony was officiated by President Maithripala Sirisena and Chinese Ambassador YI Xianliang on Saturday.

“We appreciate both President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe and other Ministers’ efforts to make the launch of the construction work on the Matara-Hambantota segment of the Southern Expressway a success,” a spokesman for the Chinese Embassy told Daily FT.

He said that this 90-kilometre expressway was funded by China EXIM bank and would create 15,000 jobs for Sri Lankan youth and shorten the travel time from three hours to 40 minutes. 

It will be completed in three and half years. 

For this project China EXIM Bank has extended a $ 1.7 billion preferential loan with an interest rate of only 2%. Repayment is spread over 20 years with a five-year grace period as per the agreement signed in 2014.

“We appreciate the new Government’s decision to go ahead with the project and we are happy that the extension of the Southern Expressway will be a big boost for socioeconomic development in Sri Lanka,” the spokesman added.