Sri Lanka to buy more Indian trains with US$318mn loan
ECONOMYNEXT – India has approved a fresh loan of US$318 million to Sri Lanka’s railway department to upgrade its communications system and rolling stock, a government spokesman said.
The money will be used to improve the signal system from Maho to Anuradhapura and Anuradhapura to Omanthai, Mass Media Minister Gayantha Karunathilake told a news conference.
It will also be used to buy six power sets with air-conditioned carriages, 10 engines and 160 carriages, 30 wagons with oil tanks and 20 container carrying wagons.
Cabinet of Ministers approved a proposal by Prime Minister Ranil Wickremesinghe as minister of national policies and economic affairs to enter into an agreement with Exim Bank of India for the loan.
India already given loans of about US$996 million to develop Sri Lanka’s railway service which were used to improve northern and southern railway lines and buy engines and power sets.
(COLOMBO, July 27, 2016)