A report by the National Audit Office has highlighted major delays and financial concerns in several large-scale infrastructure projects.
According to the report, construction of the Kurunegala-Dambulla section of the Central Expressway, estimated at Rs. 23.4 billion, has been abandoned. Additionally, Rs. 102.5 billion allocated for the Colombo-Ratnapura-Pelmadulla Expressway and Rs. 1.34 billion for the elevated expressway from the New Kelani Bridge to Athurugiriya have been spent without progress in construction.
The report also revealed that delays in the Kandy Multimodal Transport Terminal project have led to compensation payments of over Rs. 720 million to 825 affected individuals. Compensation payments, which are expected to continue until the project’s completion, have already increased by another Rs. 200 million for 1,000 individuals. Despite plans to start the project in May 2021, procurement delays have stalled work.
Furthermore, a contractor involved in one phase of the Central Expressway has not been paid Rs. 403 billion as of December 31, 2023. This could result in additional penalties under the contract terms.