The agreement was signed between the Ministry of Megapolis and Western Development and China Petroleum Engineering Company Limited.
Heavy rains in Colombo often result in parts of the capital being affected by floods.
Under the agreement two tunnels are to be constructed to prevent Colombo from being flooded in future.
China Petroleum Engineering Company Limited will design and construct the two tunnels, one which will be 1,100 meters long and 3 meters in diameter while the other will be 760 meters long and 3 meters in diameter.
Minister of Megapolis and Western Development Patali Champika Ranawaka said that Colombo is often affected by floods and the recent heavy rains saw parts of the city being inundated.
He said that to prevent flooding in future there needs to be a proper system in place, especially since Colombo is a key city in Sri Lanka.
The Minister said that flooding in some areas had already been addressed with the construction of canals but there was a need for new underground tunnels to divert water out of the city and into the sea.
He said the new tunnels to be constructed by the Chinese company is expected to address the long-standing flood issue in Colombo. (Colombo Gazette)