The Parliamentary Committee on Public Finance (COPF) reviewed the expected loan funding for the Kadawatha–Meerigama section of the Central Expressway at its meeting on 30th of September chaired by Dr. Harsha de Silva.

Officials from the Ministry of Transport, Highways, Ports, and Civil Aviation stated that the 36.475-kilometer section is expected to be financed through a USD 500 million loan from the Export-Import Bank of China, with the remaining funds to be raised locally.

Committee members questioned the decision to accept a floating interest rate of up to 3.5% after China’s EXIM Bank rejected an earlier proposal for a fixed 2.5% rate. Officials said further negotiations are underway to adjust the terms, but Dr. de Silva cautioned that the current arrangement could be unfavorable for Sri Lanka.

The committee also reviewed supplementary estimates under the Ministry to cover part of the Road Development Authority’s domestic bank loans, which total more than Rs. 310 billion. Officials noted that Rs. 36 billion from the 2025 budget would be used for repayments, and the supplementary estimate was subsequently approved.

Separately, the State Debt Management Office reported that Sri Lanka’s outstanding debt includes USD 37 billion in foreign loans and Rs. 19.6 trillion in domestic loans. When asked about installment payments due this year, officials were unable to provide exact figures, prompting the Chairman to call for more skilled staff to manage loan processes.

MPs Ravi Karunanayake, Sunil Rajapaksa, and Nishantha Jayaweera also attended the meeting.