An agreement to provide Indian assistance of USD 318 million credit line for the development of the Sri Lankan railway sector was signed at the Ministry of Finance today in Colombo.
According to the Ministry, Indian Prime Minister Narendra Modi, at his first visit to Sri Lanka in March 2015 had declared a fresh line of credit (LOC) of USD 318 million for the development of railway sector.
Government of India has already provided four lines of credit for the development of railway sector in Sri Lanka through its EXIM bank amounting to approximately USD 966 million. These credit facilities have been utilized to improve the Southern and Northern railway lines and for the procurement of rolling stocks for the Sri Lanka Railways.
“The Ministry of Transport and Civil Aviation has identified that the improving passenger transportation facilities is an urgent requirement to attract more passengers towards railway transportation which is efficient and cost effective. Further, reducing congestion in railways by improving rail tracks and signaling systems is also a key requirement to promote passenger and freight transportation,” the Ministry said in a statement.
