The main coastal and inland road from Matara to Wellawaya, which spans 158 km, was heavily damaged by the 2004 tsunami. It was rehabilitated in accordance with the highest international standards in keeping with the national requirements which includes road widening, road elevation, improvement of side drains and culverts, reconstruction of damaged bridges, construction of new bridges as well as the provision of other road amenities.

The European Union has assisted the Tsunami Affected Areas Rebuilding Project (TAARP) initiated by the Government and helped connect Tsunami affected districts to the national and provincial road networks, thereby significantly increasing economic benefits while strengthening the social and cultural ties between communities.

The road was officially handed over by Ambassador, Head of delegation of the European Commission to Sri Lanka and the Maldives, Bernard Savage to President Mahinda Rajapaksa in the presence of Minister of Highways and Road Development and other dignitaries at a ceremony at the Temple Trees, yesterday.

Prior to the handing over, Ambassador Savage was quoted as saying that "the newly reconstructed 158 km of road is a gift to Sri Lanka demonstrating friendship and solidarity from the people of Europe. The road will now serve as a link promoting economic, social and cultural exchanges and friendship between the people of the South and the East of the country".

The Matara-Wellawaya road was rehabilitated in collaboration with the Asian Development Bank and the Road Development Authority.

In addition to the rebuilding of the Matara-Wellaways Road, which was totally funded by the European Union, a stretch of 78 km of Siyambalanduwa to Akkaraipattu Road via Pottuvil was undertaken to be rehabilitated by the European Union costing Rs. 3.8 billion) with additional co-financing from the Asian Development Bank. The road is now nearing completion.