India has bagged a USD 86.5 million contract to build a railway line and telecommunication system in Sri Lanka.
The contract for reconstruction of Northern Railway Line and telecommunication system has been awarded to Indian Railway Construction International Ltd or IRCON at a total amount of USD 86.5 million, an official statement said.
The northern railway line was destroyed during the decades long ethnic conflict in the island nation which ended last year in May with the defeat of the LTTE.
The Sri Lankan government has also decided to ink a contract with China National Machinery Import and Export Corp to develop the Matara-Beliatta railway line at a cost of USD 290 million.
The contract will also include signalling, telecommunication and ticketing systems and the maintenance of these systems.
It was not immediately known when the projects would be completed.
Talks are also underway for IRCON to construct the line from Omanthai to Pallai while the Peoples Republic of China is proposed to be awarded the contract for construction of the rail line from Pallai to Kankesanthurai in Jaffna peninsula.