While addressing a Cabinet briefing in Colombo, he said the project is being studied by the Ministry of Finance and Planning to build the tunnel from Bogambara to Buwelikada in Kandy going under the Kandy Lake (the main body of water located in the heart of the hill city).
"This will definitely reduce the traffic in the town and the officials said that they have already finished the feasibility study," he said.
The Strategic Cities Development Project plans for Galle and Kandy cities on major developments in the country.
He said, together with a transport improvement, plans to overcome traffic issues in the Kandy city were identified as priority needs under this project.
The proposal was made by President Mahinda Rajapaksa in his capacity as the Minister of Defence and Urban Development.
The plans for Environmental Assessments by the University of Moratuwa and Social Assessments by the University of Peradeniya have been approved by the Cabinet, he said.
