The Cabinet of Ministers has awarded a Rs. 356.22 million consultancy contract for the feasibility study and detailed planning of extending the Kelani Valley Railway Line from Avissawella to Ratnapura.
The contract, exclusive of taxes, has been awarded to M/s. Resources Development Consultants (Pvt) Ltd on the recommendation of the Consultant Procurement Committee, the government said on Wednesday.
The consultancy award follows Cabinet approval granted on 21 October 2025 to initiate the study. Expressions of interest were called under the national competitive procurement procedure, with eight bidders responding. Technical proposals were evaluated first, followed by review of financial bids from four eligible institutions before the final selection.
The existing narrow-gauge Kelani Valley Line currently terminates at Avissawella. Extending it to Ratnapura — the administrative centre of Sabaragamuwa Province — has been a long-pending infrastructure proposal intended to improve freight and passenger connectivity from the gem-mining district to Colombo. The Rs. 356.22 million figure covers design work only; a separate construction budget and build contract will follow once the feasibility study concludes.
The decision forms part of a broader Cabinet session on Wednesday that also covered drug rehabilitation centres and Cyclone Ditwah reconstruction reviews.