Cabinet Awards Rs.2.89 Billion Baseline Road Extension Contract to Maga Engineering
COLOMBO, September 30, 2026 — The Government has awarded a Rs.2.89 billion contract to Maga Engineering Ltd. for the third phase of the Baseline Road Extension Project, marking another major public investment in Colombo’s urban transport infrastructure.
Cabinet Spokesperson and Minister Dr. Nalinda Jayatissa said the contract was approved at Monday’s Cabinet meeting following a competitive procurement process conducted under the National Competitive Bidding procedure.
The project will upgrade a 0.86-kilometre section of the Colombo–Horana Road, extending from Kirulapone Junction to Dutugemunu Street, into a six-lane road.
The development is expected to improve traffic capacity along the corridor while strengthening connectivity within Colombo’s wider road network.
Major Infrastructure Components
The third phase will involve more than simply widening the existing road.
The planned works include the construction of an underpass, signal-controlled intersections, improved pedestrian facilities and upgrades to the existing drainage system.
The combination of road capacity improvements and supporting infrastructure is aimed at addressing traffic congestion while improving road safety and movement for motorists and pedestrians.
The project is part of the Government’s broader effort to upgrade urban transport infrastructure and improve connectivity along key corridors in the Western Province.
Maga Engineering Selected Through Competitive Tender
According to Minister Jayatissa, seven bids were submitted for the project and subsequently evaluated.
The High-Level Procurement Committee recommended Maga Engineering Ltd. after determining that its proposal was the lowest substantially responsive bid.
A substantially responsive bid is one that meets the essential technical and commercial requirements specified in the tender while offering the lowest evaluated cost.
The Rs.2.89 billion contract value excludes Value Added Tax (VAT).
The contract award was approved following a proposal submitted by the Ministry of Transport, Highways and Urban Development.
Economic Significance
The project represents a significant allocation of public investment toward transport infrastructure at a time when improving connectivity remains important to Sri Lanka’s economic recovery and urban development.
Better road infrastructure can reduce travel times, improve the movement of goods and services and increase the efficiency of businesses operating across Colombo and surrounding areas.
The planned drainage improvements could also strengthen the resilience of the road corridor against flooding and heavy rainfall, while upgraded pedestrian infrastructure is expected to improve accessibility and safety.
The project will also generate activity across the construction and related services sectors during its implementation.
With the latest contract award, the Government is moving forward with another major stage of the Baseline Road development, with the upgraded corridor expected to contribute to improved urban mobility and economic connectivity once completed.
