Highway fast tracked

25 April 2008

Sri Lanka: The Sri Lankan Government is to fast track construction of the LKR 30 billion (US$ 294 million) Southern Highway, which it predicts will boost GDP by +10% in the south of the country.

Both the Asian Development Bank (ADB) and the Japan Business Corporation (JBC) are to provide finance. The 128 km road will cut journey times between Colombo and Matara from 4 hours to 90 minutes.

The 67 km Kottawa-Dodangoda section, funded by the Japan Bank for International Cooperation (JBIC), is already underway. Main contractor China Harbour Engineering Company started work in September last year.

JBIC is also funding the Southern Highway.

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