Rail Deal

Nov 04, 2010 (LBO) – Sri Lanka is to enter into a credit agreement with India’s Export – Import Bank for an Indian government soft loan of 416 million US dollars to rebuild railways destroyed by war, a spokesman said. Media minister Keheliya Rambukwelle said the funds will be used to rebuild three sections of rail track in the north that was destroyed in the 30-year ethnic war that ended in May 2009.

Ircon International Company, owned by India’s ministry of railways, has been given the deal to build the railway network.

India will provide 185.3 million dollars to build the track from the northern town of Omanthai to Pallai, further north.

It will also give 81.3 million dollars for the track from Medawachchiya to Madhu and 149.7 million dollars for the sections between Madhu and Talaimannar on the north-west.