Govt. to set up Expressway Investment Company

Proposed entity to earn new income leasing land parcels adjoining expressways

The Cabinet of Ministers has approved a proposal to set up an Expressway Investment Company, a fully State-owned entity under the Treasury to own and self-finance ongoing and future expressway projects with revenues generated from toll collections and possible revenue streams by leasing valuable land parcels adjoining the highways. The government estimates a funding requirement of 0.5 to 1 percent of gross domestic product (GDP) for expressways already under construction and scheduled to be constructed, according to the Department of Government Information.

Prime Minister Mahinda Rajapaksa this week presented the relevant proposal to the Cabinet of Ministers in his capacity as Minister of Finance. The government has prioritised completing the construction of the central expressway as well as the completion of construction activities of the expressway from Kelaniya to Athurugiriya while commencing construction of the proposed Ruwanpura expressway.

Further, the government is currently implementing a rural by-ways project covering 100,000 kilometers across the country.

Cabinet Co-spokesperson Minister Keheliya Rambukwella yesterday told reporters that the proposed company would be able to generate additional income by leasing valuable lands parcels surrounding highways, which will be given on 30-year lease period.

The move to set up a separate company to own and fund expressways is expected to reduce the burden on the Treasury and also to take off the Central Bank debt utilised for expressway projects from its balance sheets.

The new government has recognised an interconnected highway network as key to economic development in its policy framework. (NF)