Sri Lanka gets $318mn Indian loan to modernise railways
Jun 06, 2017 14:59 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT – Sri Lanka’s finance ministry Tuesday signed an agreement with India’s Export- Import Bank for a loan of 318 million US dollars to develop the railway sector and promote passenger and freight transportation.
The Government of India has already provided US$966 million in four Lines of Credit for the development of Sri Lanka’s railway sector in through its Exim bank, a Ministry of Finance and Mass Media statement said.
These loans were used to improve the Southern and Northern railway lines and for the procurement of rolling stocks for the Sri Lanka Railways.
The latest loan of 318 million US dollars for the railway sector was announced by Prime Minister of India Narendra Modi on his first visit to Sri Lanka in March 2015.
“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,” the statement said.
“Reducing congestions in railways by improving rail tracks and signaling systems is also a key requirement to promote passenger and freight transportation.”
(COLOMBO, June 06, 2017)