Colombo: The Export-Import Bank of India
today signed an agreement with the Sri Lankan government to
provide credit of USD 67.4 million for upgrading the Island
nation's southern rail line.
The agreement was signed by P B Jayasundera, Secretary,
Ministry of Finance and Planning, and Export-Import Bank of
India Executive Director Prabhakar Dalal in the presence of
Ashok K Kantha, the High Commissioner of India in Colombo.
The line of credit will fund the second phase of the
upgradation of Southern Railway Line from Colombo to Matara.
India, through the Export-Import Bank of India, had
earlier provided a line of credit of USD 100 million under an
agreement signed in July 2008.
The implementation of the first phase of the upgradation
of the Southern Railway Line is currently on.
The upgradation project includes supply of materials for
rail track rehabilitation from Colombo to Matara and execution
of work for rail track rehabilitation from Kalutara to Matara
which is being implemented by IRCON (I) Ltd.
In addition, the Line of Credit is also being used for
supply of 20 sets of Diesel Multiple Units, three units of
locomotives, spare parts for the existing M8 class
locomotives, supply of plant and machinery for maintenance of
existing DMUs and construction of maintenance sheds at
Aluthgama, Galle and Colombo by RITES India Ltd.
The upgradation project would allow the trains to travel
on the Colombo Matara sector at speeds up to 100 kmph.
-PTI