The Export-Import Bank of India on Wednesday signed an agreement with the Sri Lankan government to provide credit of USD 67.4 million for upgrading the Island nation's southern rail line.
The agreement was signed by PB Jayasundera, Secretary, Ministry of Finance and Planning, and Export-Import Bank of India Executive Director Prabhakar Dalal in the presence of Ashok K Kantha, the High Commissioner of India in Colombo.
The line of credit will fund the second phase of the upgradation of Southern Railway Line from Colombo to Matara.
India, through the Export-Import Bank of India, had earlier provided a line of credit of USD 100 million under an agreement signed in July 2008.
The implementation of the first phase of the upgradation of the Southern Railway Line is currently on.
The upgradation project includes supply of materials for rail track rehabilitation from Colombo to Matara and execution of work for rail track rehabilitation from Kalutara to Matara which is being implemented by IRCON (I) Ltd.
In addition, the Line of Credit is also being used for supply of 20 sets of Diesel Multiple Units, three units of locomotives, spare parts for the existing M8 class locomotives, supply of plant and machinery for maintenance of existing DMUs and construction of maintenance sheds at Aluthgama, Galle and Colombo by RITES India Ltd.
The upgradation project would allow the trains to travel on the Colombo Matara sector at speeds up to 100 kmph.