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Sri Lanka state company to own, finance expressways

ECONOMYNEXT – Sri Lanka will set up a state-run company to own and self-finance expressways which may require financing of around 0.5 to 1 percent of gross domestic product, the state information office said.

The Cabinet had approved a proposal by Finance Minister Mahinda Rajapaksa to set upa 100 percent Treasury owned company be set up to own all expressway.

Roads under construction and proposed roads including Ruwanpura and Kelaniya to Athurugiriya elevated expressway is expected to require outlays of 0.5 to 1.0 percent of gross domestic product.

The expressway investment company would own all expressways, collect tolls and raise its own funds.

The firm will also look at other income generating means, the proposal said.

By incorporating a separate company, debt can be taken off-balance sheet of the central government.

Sri Lanka is now collecting tolls from both Southern Expressway and the Katunayake Expressway to the airport. (Colombo/Oct13/2020)