Chinese companies get $1.5 bln highway deal in Sri Lanka

Two Chinese companies have been given the first phase of a 1.5 billion US dollar highway deal that will connect Sri Lanka's former war-torn north with the southern part of the country, a top official said on Thursday.

China Merchant Holdings and China Merchants Huajian Investment Company have been accepted by the Sri Lankan cabinet to construct 100 km of the proposed northern expressway under the recommendation made by President Mahinda Rajapaksa.

"The project is also fully funded by these two companies," Cabinet spokesman and Media Minister Keheliya Rambukwella told media but insisted that he was unable to divulge the cost for the first stage of the highway.

"A cabinet-appointed negotiating committee and a project committee will be appointed to evaluate the project proposals for the planning, designing, financing, construction and operation of stage one and two," he added.

According to Finance Ministry Secretary Dr. P.B. Jayasundara, the entire highway will cost 1.5 billion US dollars and will be completed in 2016.

Several Chinese companies have been engaged in large infrastructure projects in Sri Lanka, contributing to the post-war development of the country which witnessed the end of civil war in 2009.