Sri Lanka and India today signed an agreement to provide Indian assistance of US$ 318 million credit line for the development of Sri Lanka’s railway sector.
Secretary, Ministry of Finance and Mass media Dr. R H S. Samaratunga on behalf of Sri Lanka and Managing Director of the Export- Import Bank of India Mr. David Rasquinha signed the loan agreement today, at the Ministry of Finance and Mass Media in Colombo.
Secretary to the Ministry of Transport & Civil Aviation Mr. Nihal Somaweera, Deputy High Commissioner of India Mr. Arindam Bagchi, Director General, Department of External Resources Mr. Priyantha Rathnayake, and distinguish officials of both governments were also present at the occasion.
The Prime Minister of India Mr. Narendra Modi, at his first visit to Sri Lanka in March 2015 had declared a fresh Line of Credit (LOC) of US$ 318 million for the development of railway sector in Sri Lanka. 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 US$ 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 Sri Lanka Railways under the supervision of Ministry of Transport and Civil Aviation will implement the projects.
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 congestions in railways by improving rail tracks and signaling systems is also a key requirement to promote passenger and freight transportation.
The Government of India is the major development partner of Sri Lanka in South Asian region over 40 years since 1973. During the last few years Indian foreign direct investment in Sri Lanka has expanded exponentially.
Presently Indian development assistance mainly focusing on improvement of economic infrastructural facilities, livelihood development, education, healthcare, capacity building and economic renewal of Sri Lanka.
