Govt. rejects privatising Southern Expressway

Saturday, 23 February 2019 00:00 - - {{hitsCtrl.values.hits}}

Says not an option even though private companies have expressed interest

The Government this week shot down Opposition claims that it was preparing to privatise the Southern Expressway, which was a development program initiated during the former Government.

Public Enterprise, Kandyan Heritage and Kandy Development Minister and Leader of the House of Parliament Lakshman Kiriella, responding to a supplementary question, held that although several expressions of interest were received from foreign entities but the Government is not interested.

“Based on the capital requirements of the country, several international companies have offered to assist us in lieu of the Southern Expressway. But we have not taken a decision to privatise,” said Minister Kiriella.

The Road Development Authority is in charge of the Southern Expressway, which generates a monthly revenue of Rs.323 million issuing tickets to vehicles using it. Even though the total income generated stood at Rs.488.66 million as at 31 July 2018, the Treasury has released Rs.4 billion to the RDA for road development activities with Cabinet approval.

The Southern Expressway Project was introduced by the Road Development Authority and the Ministry of Highways as far back as the late 1980s. Construction of the Expressway began in 2003, and completed up to Galle by November 2011. March 2014 saw the section from Galle to Matara being declared open to the public.

The construction of the Expressway was partly funded by the Japan Bank for International Cooperation, who was responsible for the 65 km section between Kurundugahahetekma and Kokmaduwa, and the Asian Development Bank, responsible for the 161 km section between Kurundugahahetekma and Pinnaduwa.

The Expressway reduces the time taken to travel from Colombo to Galle to one hour from three hours, and Colombo to Matara to one and a half hours from four hours taken by the regular A2 highway. The extension of the Expressway to Hambantota was inaugurated on 4 July 2015. The extension will be at a cost of $180 million funded by the Exim Bank of China.