India to finance Colombo-Matara rail and a coal power plant

India to finance the Colombo-Matara rail network and a coal power plant in Trincomalee. India to finance the Colombo-Matara rail network and a coal power plant in Trincomalee. “It was noted that India has made an initial allocation of a Credit Line of US$ 100 million for the integrated development of the Colombo – Matara rail network,” said a joint press statement on Friday, on President Mahinda Rajapaksa’s Indian visit from December 27 – 30.

“It was agreed at the request of the Sri Lanka side, that India would take this process forward by the extension of concessionary terms to be mutually agreed upon, for the allocated credit of US$ 100 million, and for any additional credit to be made available for the said project,” said the statement.

Officials from the Ministry of Finance and the Ministry of Railways will visit India to agree on the technical and engineering aspects of the project, and the terms and conditions of the credit line.

A coal power plant in Trincomalee, as a joint venture between the Indian government owned National Thermal Power Company Ltd and the Ceylon