Press briefing of Cabinet Decision taken on 2016-07-26

A Dollar Credit Line of US$ 318 million from the Government of India for the Development of Sri Lanka Railway Sector

- The Government of India has already provided a credit facility amounting to US$ 966 million, for the development of the railway sector in Sri Lanka and that credit facility has been utilized to improve the Southern and Northern railway lines and for the procurement of rolling stock for the Sri Lanka Railways. During the official visit made to Sri Lanka in the year 2015, the Prime Minister of India, has expressed his consent to provide a further Line of Credit amounting to US$ 318 million for the improvement of the railway service in the country. This loan facility is intended to be utilized to rehabilitate the railway tracks from Maho to Anuradhapura and from Anuradhapura to Omanthai, also improving the signalling system; to procure 06 Diesel Multiple Units with air conditioned passenger compartments, 10 locomotives, 30 oil tank wagons, 20 container carrier wagons and 160 passenger coaches, with a view to encouraging economic activities, while ensuring efficient transportation of goods and passengers between Northern and Southern areas of the country. Accordingly, the proposal made by the Prime Minister, Hon. Ranil Wickremasinghe, in his capacity as the Minister of National Policies and Economic Affairs, to enter into an Agreement with the EXIM Bank of India to borrow the said loan, was approved by the Cabinet.