Harsha Warns About New Interest Proposal for Central Expressway Project

07-Oct-2025

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Kalani Harsha D. Silva, leader of the Government Finance Committee and Member of Parliament, has expressed concern over a proposal to change the interest rate structure for financial assistance for the Central Expressway Project. He warned that this could increase the country’s debt burden.

In an official post on his platform, Harsha D. Silva noted that the 226 billion rupee project, already delayed and affected by rising interest costs, had been subjected to reconsideration due to ongoing uncertainties in financing and contracts. 

Although the project was relaunched with great fanfare under President Anura Kumara Dissanayake, negotiations with China EXIM Bank regarding the claims of major contractors and a revised 500 million dollar loan facility have not yet been completed.

Harsha pointed out that the Ministry of Highways’ proposal to shift from the existing fixed 2.5% interest rate over 15 years to a variable rate between 2.5% and 3.5% has confused the Government Finance Committee.