South Sri Lanka is set for new roads and flyovers in a LKR40bn ($303m) investment. The construction contract has been awarded to China State Construction Engineering, which will build roads and flyovers in Hambantota, a city in the Southern Province.

Of the $303m, the Chinese government is providing 85% ($240m) in loans through Exim Bank of China, while the rest is being met by the Sri Lankan government.

Sri Lanka Media and Information Minister Keheliya Rambukwelle said that the project will turn Hambantota into a transport hub.

The new road and flyover contract has been awarded as a part of Hambantota Hub Development Project, Rambukwelle noted.

The infrastructure project involves the construction of 64km of roads and flyovers, including a 23.34km stretch from Mirijjewila to Sooriyawewa, an 18.28km road from Sooriyawewa, Moraketiya to Embilipitiya, and a 16.18km road from Ranna to Wetiya.

In addition, the Chinese firm will build a 6.64km outer circular road in Hambantota and an 18.53km road from Sooriyawewa to Wetiya, along with other flyovers at Wetiya-Narnadagaswewa.

The Chinese government is also financing a $361m port, a $209m airport and various other infrastructure projects in the city.

Exim Bank had previously provided funds for similar road projects in Sri Lanka – 126km Southern Expressway running from Colombo to Matara on the south coast, which was inaugurated in November 2011, was constructed with investment of over $700m; and A9 Expressway, a 321km-stretch connecting Kandy with Jaffna, was reconstructed with $520m.