India gives US$ 67.4 m to upgrade Southern railway line

Walter LIYANARACHCHI

The Indian Government will provide the credit balance of US $ 67.4 million to upgrade the Southern Railway Line from Colombo to Matara.

Finance and Planning Ministry, Secretary Dr. P.B. Jayasundera and Export-Import Bank of India Executive Director Prabhakar Dalal signed the credit agreement at the Finance and Planning Ministry yesterday. Picture on Page 3,

The total cost of the project is estimated at US $ 212.4 million of which US $ 167.4 million is expected from foreign sources. The balance US $ 45 million will be financed by the Sri Lankan Government.

Out of the total Indian aid package, US $ 100 million had been provided by the Indian Government under a credit line in 2008. With the signing of the agreement yesterday, the Indian Government completes the final quota of US $ 67.4 million.With the implementation of the project, the Railway Department will be able to upgrade the track from Colombo to Matara allowing a maximum speed up to 120 kmph.It will increase the average operating speed allowing a passenger express train to cover the Colombo-Galle distance within two hours.

It has also been decided to increase the train capacity as well as frequency of trains and to prolong the life of the existing fleet by reducing the pressure that caused presently.

The project's main activities are to supply material for rail track rehabilitation from Colombo to Matara, purchase 20 Diesel Multiple Units (DMUs), purchase three units of locomotives, provide spare parts for the existing M 8 class locomotives and supply plants and machinery to maintain existing DMUs.