A prolonged construction halt on the Central Expressway has led to a massive compensation claim, highlighting how administrative delays can trigger costly consequences for a major national infrastructure project.
Sri Lanka is facing a compensation demand of nearly Rs. 1 billion from a Chinese construction company following a multi-year delay in the Central Expressway project, reportedly caused by the failure to remove a Padukaran tree near the Daraluwa railway station in Gampaha. The claim has drawn attention to the scale of financial exposure the country faces when infrastructure timelines are disrupted by unresolved procedural and environmental issues.
Director Engineer R.M.J.N. Ratnayake, speaking to a local newspaper, said the Chinese company has formally sought Rs. 980 million in compensation for losses incurred during the stalled construction period. He noted that the total compensation payable has not yet been fully finalized, as calculations are still underway, but acknowledged that the figure currently being assessed is substantial and could rise once all associated costs are accounted for.
According to project officials, construction work on this section of the expressway was effectively suspended from April 2022 until September 2025 because the Padukaran tree located near the railway line was not removed in time. The delay prevented the contractor from proceeding with planned work, bringing progress on the project to a standstill for more than three years and contributing directly to escalating costs.
During this period of inactivity, heavy machinery, vehicles, and other specialized equipment belonging to the Chinese company remained parked and stored in multiple warehouses across Sri Lanka. Engineers involved in the project said that once construction was cleared to resume, the contractor required an additional three months to recommission machinery, reorganize logistics, and prepare equipment that had remained idle for an extended period.
Officials estimate that the country has suffered losses approaching Rs. 1,000 million due to the delayed removal of the tree and the resulting suspension of construction. The episode has become a striking example of how relatively small unresolved issues can snowball into major financial liabilities, particularly in large-scale infrastructure projects involving foreign contractors and complex contractual obligations.
