The Minister has informed the Malaysian investors that the government's intention is to minimize as far as possible in securing long term loans and requested them to undertake the project as an investment, not as a loan.

The Minister recalled that the project was initially mooted in 2002 by the then United National Party (UNP) government and an agreement was signed with Malaysian investors. At the time it could have been completed at a cost of US$ 100 million but now the cost has risen ten times to US$ 1 billion, the Minister said. The Minister pointed out the project would be carried out under the Bill Operate and Transfer Scheme.

The previous government under President Mahinda Rajapaksa launched the project to construct the Colombo-Kandy Expressway as part of Northern Expressway construction in November with loan assistance from China.

The current government is exploring ways to reduce the debt burden due to the high-interest loans from China with alternate low-interest funding sources.