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The Colombo-Matara Highway Development project has been awarded to Kumagaigumi Construction Company of Japan, a Ministry spokesman told the 'Sunday Observer'.

The spokesman while stating that a news item appearing in certain newspapers is totally false disclosed that when the Defence Minister Tilak Marapane who is also the Minister of Transport and Highways after tabling the proposal at last week's Cabinet meeting, pending investigations by the Committee On Public Enterprises (COPE), received the approval to award the tender to the Japanese company.

After perusing the document tabled by the Minister, Prime Minister Ranil Wickremesinghe and the Ministers endorsed the proposal.

The Colombo-Matara Highway Development project will cost around Rs. ten billion. The Asian Development Bank will provide 81 per cent and the balance amount will be borne by the Sri Lanka government.

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