Maga Engineering gets revised contract for Rs. 25.6 b Sethsiripaya Phase III

Wednesday, 19 August 2026 05:21 - - {{hitsCtrl.values.hits}}

The Cabinet of Ministers on Monday approved entering into a revised agreement with M/s Maga Engineering Ltd., for Rs. 25.58 billion (including value of completed work and payable amounts, but excluding contingencies, taxes, and daywork) for the completion of remaining construction work of Sethsiripaya Stage III.

The Urban Development Authority (UDA) initiated the Sethsiripaya Stage III project to meet the growing demand for administrative office space in the Government and semi-Government sectors.

“Originally, the total estimated capital expenditure was Rs. 16.7 billion. Approval of the Cabinet of Ministers was previously received for piling and superstructure. Accordingly, the construction work of the project commenced in the year 2021 and progressed up to the completion of three floors. However, the project was temporarily suspended by mutual agreement due to economic instability, material shortages, import restrictions, and rising costs in the construction sector,”

Cabinet Spokesperson and Health Minister Dr. Nalinda Jayatissa told the weekly post-Cabinet meeting media briefing yesterday.

He said the Government has since identified the need to expedite the completion of the project to address the office space requirements of State institutions.

Under the proposed financing arrangement, office space in the building is expected to be allocated to the Energy Ministry, Inland Revenue Department (IRD), State Pharmaceuticals Corporation (SPC) and the UDA, with the institutions contributing financially in proportion to the space allocated to them.

It has been calculated that the overall cost of the project, including the cost incurred so far, the cost that should be incurred to complete the project, other expenses, and the relevant tax, will be Rs. 38.48 billion. The original building contractor M/s Maga Engineering Ltd., has submitted a technical and financial proposal without altering the original scope.

“After evaluation by the variation review committee, the contractor agreed to complete the remaining works for Rs. 22.76 billion; excluding completed work value, payable amounts, contingencies, taxes, and daywork,” he added.

The proposal to this effect was submitted by Transport, Highways, and Urban Development Minister Bimal Rathnayake.