The cabinet has green-lit a revised agreement worth 25.58 billion rupees with Maga Engineering to complete the stalled Sethsiripaya Phase III administrative office complex, with the total project cost rising significantly from initial estimates.

Sri Lanka's cabinet has approved a revised contract valued at 25.58 billion rupees with Maga Engineering (Pvt) Ltd to finish construction of the Sethsiripaya Phase III office complex. The project, initially launched by the Urban Development Authority to address government office space demand, began in 2021 but was halted after three floors were completed due to economic difficulties and supply chain disruptions.

The total estimated cost has ballooned to 38.48 billion rupees, up from an initial capital estimate of 16.7 billion rupees. This increase reflects the accumulated impact of past expenditures, additional project costs, economic instability, material shortages, import restrictions, and rising construction sector prices. The government has opted for a joint financing model whereby participating state institutions will contribute proportionally based on allocated office space.

Maga Engineering, the original contractor, submitted a revised proposal to complete remaining works for 22.76 billion rupees without altering the project scope. Following evaluation by the Variation Review Committee, the revised 25.58 billion rupee contract was approved by the Cabinet of Ministers on the recommendation of the Minister of Transport, Highways and Urban Development. This figure covers completed work and pending payments while excluding contingent funds, taxes, and daily labour costs.

The Ministry of Power, Department of Inland Revenue, State Pharmaceuticals Corporation, and the UDA have been identified as the primary occupant institutions for the completed facility.