Sri Lanka’s infrastructure development, funded through foreign aid, has been marred by significant delays, financial mismanagement, and the abandonment of projects, according to a damning National Audit Report issued in the last week of December 2024.
The report highlights a string of unfinished projects that were supposed to drive economic growth but are instead draining the national coffers and undermining public trust in government agencies. From flyovers to tunnels, and highways to rural bridges, the Audit Report paints a grim picture of unfulfilled promises, missed deadlines, and poorly managed funds.
Among the most striking findings is the Kohuwala and Getambe flyovers project, which was expected to generate daily savings of Rs. 4.26 million for the national economy once completed. However, as of December 2023, construction remains incomplete, and 13 out of 19 invoices worth 6.3 million Euros remain unpaid. The delay risks incurring penalties, exacerbating the financial burden.
Another alarming project highlighted is the Kandy Multimodal Transport Terminal, which has failed to break ground since its scheduled start date of May 2021. The delay in procurement for civil and consultancy works has led to Rs. 712 million in compensation payments to 825 affected businesses, with further compensation expected as construction drags on.
Similarly, the Port Access Elevated Highway Project, initially slated for completion by September 2024, is now at risk of missing the deadline due to delays with the contractor. Despite the considerable setbacks, no penalties for delay have been imposed, and the cost of extending the project timeline has already exceeded Rs. 493 million. Meanwhile, the Marine Facilities Center, critical for the Sri Lanka Ports Authority, has faced delays that resulted in Rs. 221.53 million being spent on mobilizing existing staff.
Additionally, non-conformance issues, such as cracks, safety concerns, and structural defects, remain unaddressed. The National Audit Report also draws attention to a series of abandoned projects, including the Colombo-Ratnapura-Pelmadulla expressway and the Stage 04 of the Central Expressway. These projects were halted despite millions being spent, causing an enormous waste of public funds. Even rural infrastructure projects like bridge constructions have seen dismal progress, with 58% of contracts canceled and over Rs. 333 million paid to contractors for canceled agreements. The government’s inability to manage these projects effectively not only exacerbates the country’s infrastructure crisis but also jeopardizes its long-term economic recovery.
