Maga Engineering, Access, ICC and others secure contracts for Rs. 122 b expressway project

• Cabinet clears Rs. 112.4 b in Treasury funds for Central Expressway Phase II contracts for local firms
• Contracts awarded: Maga Engineering

Rs. 34 b, Access Engineering 

Rs. 18.7 b, NEM Construction 

Rs. 16.9 b, K.D.A. Weerasinghe and 

Co. Rs. 14.7 b, Edward and Christie 

Rs. 14.5 b, and ICC Rs. 14.1 b

In a major boost for the construction sector, The Government has awarded over Rs. 112 billion worth of contracts for the long-delayed Central Expressway Project Phase II, marking a major step toward accelerating one of the country’s flagship road infrastructure projects.

The Cabinet approved the awarding of seven construction packages covering the Rambukkana–Galagedara stretch of the expressway, spanning 18.65 kilometres from km 13+800 to km 32+450, under the supervision of the Transport, Highways and Urban Development Ministry.

The project will be funded entirely through Government financing and implemented through competitive bidding among qualified local contractors.

Under the approved contracts, Maga Engineering secured Package 2A for Rs. 14.90 billion and Package 2G for Rs. 19.10 billion, giving it the largest share of the project.

K.D.A. Weerasinghe and Company was awarded Package 2B valued at Rs. 14.71 billion, while International Construction Consortium secured Package 2C for Rs. 14.12 billion.

NEM Construction won Package 2D worth Rs. 16.39 billion, while Access Engineering was awarded Package 2E valued at Rs. 18.70 billion. Meanwhile, Edward and Christie secured Package 2F for Rs. 14.52 billion.

The total contract value approved by Cabinet amounts to approximately Rs. 112.44 billion, excluding VAT.

Bids were called under the National Competitive Procurement Methodology, with between three and six bidders competing across the seven packages. The final awards were made based on recommendations by the High-Level Standing Procurement Committee.

The Central Expressway is expected to improve connectivity between Colombo and the central province, reduce travel times, and support trade, tourism and regional economic activity once completed.

The construction sector is expected to enter an expansion phase in 2026, supported by reconstruction demand, public infrastructure spending and a gradual recovery in private sector activity. 

CT Smith Securities in April said the sector, which historically grows at around 2.8 times the pace of GDP, contributed Rs. 1.9 trillion to the economy in 2025 and is positioned to benefit disproportionately from the broader macroeconomic recovery. 

Reconstruction following Cyclone Ditwah is expected to be a major near-term catalyst, with estimated damage equivalent to around 4% of GDP and rebuilding costs projected at approximately Rs. 878 billion as at January 2026. 

Over the medium term, the Government’s 2026–2028 public investment program allocates around Rs. 2 trillion to construction-linked sectors, representing nearly 70% of planned capital expenditure, with highways accounting for 48%, irrigation 17.5%, and housing 9.3% of the allocation. 

Private sector activity is also showing signs of improvement, with outstanding credit to the construction sector rising 15.5% year-on-year in 2025 amid expectations of a broader capex recovery. However, the sector faces risks from rising material and energy costs linked to Middle East tensions, tighter financing conditions, labour shortages, and execution pressures, particularly among smaller contractors (see: https://www.ft.lk/propertyconstruction/Construction-sector-enters-expansion-phase-with-Rs-2-t-pipeline-CT-Smith-Securities/10516-790395).