Colombo, Oct 5 — Chairman of the Committee on Public Finance (CoPF), Dr. Harsha de Silva, has voiced serious concern over a proposal to alter the interest rate structure of the Central Expressway’s financing, warning that it could increase Sri Lanka’s long-term borrowing costs.

The LKR 226 billion Kadawatha–Mirigama stretch, funded by a USD 500 million loan from China EXIM Bank, is currently under review due to unresolved financial and contractual issues. The Ministry of Highways has proposed shifting from a fixed 2.5% interest rate to a variable rate ranging between 2.5% and 3.5%.

“This move could expose Sri Lanka to higher costs if Chinese lending rates rise,” Dr. de Silva posted on X, urging the government to reconsider the proposal.

The CoPF noted that the project—already delayed and burdened by growing interest payments—remains in limbo, with negotiations between the main contractor MCC and China EXIM Bank still incomplete.

Dr. de Silva emphasized the need for a “fair and balanced agreement” that protects Sri Lanka’s financial interests, especially amid ongoing economic recovery efforts.