Chinese Ambassador to Sri Lanka Cheng Xueyuan (L, center) and R.H.S. Samarathunga (R, center), Secretary to Treasury and the Ministry of Finance and Mass Media of Sri Lanka sign a concessional loan agreement in Colombo, Sri Lanka on March 22, 2019. Sri Lankan Finance Ministry on Friday signed a concessional loan agreement with the Export-Import Bank of China (China Exim Bank) on a mega expressway project. (Xinhua/Tang Lu)

COLOMBO, March 22 (Xinhua) -- Sri Lankan Finance Ministry on Friday signed a concessional loan agreement with the Export-Import Bank of China (China Exim Bank) on a mega expressway project.

The agreement, valued at 989 million U.S. dollars, was inked by Chinese Ambassador to Sri Lanka Cheng Xueyuan and R.H.S. Samarathunga, Secretary to Treasury and the Ministry of Finance and Mass Media of Sri Lanka.

The loan from China Exim Bank will cover 85 percent of the project cost for section one of the Central Expressway project.

The Central Expressway runs through the central part of Sri Lanka connecting the Western, North Western, Sabaragamuwa and Central Provinces with other densely populated and economically developed provinces.

It also connects capital Colombo to the central hills of Kandy, the two major cities and economic centers.

The government of Sri Lanka attaches great importance to the expressway project, hoping it will boost the development of the country's infrastructure.