Govt. to establish an expressway investment company

Wednesday, 14 October 2020 02:28 - - {{hitsCtrl.values.hits}}

The Cabinet this week approved a proposal by Prime Minister Mahinda Rajapaksa as the Minister of Finance to establish a fully Government-owned company to seek investment for expressway infrastructure projects.

The Government’s priority is to complete the Central Expressway and the expressway that will run from Kelaniya to Athurugiriya, Cabinet Spokesman Keheliya Rambukwella said yesterday. Responding to a question, Rambukwella stated that the Central Expressway will also benefit those in the North and North Central Provinces as the expressway will connect to the A9 highway leading to the Jaffna peninsula.

He said that having an interconnected highway network was important for economic development.

According to the Government, the need for 0.5%-1% of the gross domestic product should be allocated for the financing of the expressways already under construction and scheduled to be constructed. Under the approved proposal, the new investment company will be one solely owned by the Secretary to the Treasury. All expressways in the country will be brought under the new entity.

“Therefore, the cabinet approved to establish a fully State-owned enterprise (SOE) which will be empowered to raise the necessary revenue. Especially, through utilisation of valuable State land which will can be leased for a period of 30 years, we believe that necessary funds can be generated fulfil the need. We aim not to burden the Treasury with generating funds and by utilising State land on a 30-year lease to generate most of the required funds,” Rambukwella explained.

“The rural byways project, which will cover 100,000 km is also being implemented,” Rambukwella added.