Sri Lanka resumes key highway project with US$500 million new Chinese funding


COLOMBO: Sri Lanka resumed construction of a stalled highway project with a new US$500 million Chinese loan on Wednesday (Sept 17), the first funding from its largest bilateral creditor since the island nation defaulted on its foreign debt three years ago.

The construction of the 38-km (24-mile) highway stretch of the Central Expressway that links the hub of Colombo with Kandy city in the central highlands was launched in 2016 but suspended in 2023 when the project ran out of funds and building materials in the aftermath of the country's worst financial crisis.

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