COLOMBO (News 1st) – The third phase of the Central Expressway project is to be halted as the cabinet prepares to withdraw the contract from the Japanese Taisei Company.

According to the sources, the cabinet is preparing to withdraw the contract as a result of delays in constructing an interchange in the third phase of the project.

A spokesperson of the Ministry of Highways noted that despite the withdrawal of the project the government would not have to pay the company as no agreement was made between the country and the government.

Taisei has informed the Sri Lankan government that if the government is to withdraw the project of the interchange in question, they would refuse to construct the rest of the expressway.

The third phase of the Central Expressway is being carried out using money loaned at a high-interest rate, and a number of conditions from the Tokyo Mitsubishi Bank.

The value of the loan is US$ 1bn.

The distance of the third phase of the project from Pothuhera to Galagedra is 32km.

• 129 Vaccination Centers Open on Monday (18)
• ICC T20 World Cup: Scotland stun Bangladesh to register a 6-run win
• 578 COVID cases reported on Sunday (18) & Over 24,000 being treated in hopital
• FUTA condemns government approach to teachers issue
• Brutal attack in Bandaragama, two men seriously injured