Colombo, July 19 (BAN/ AD): On Thursday India and Sri Lanka have signed USD 91.26 million contract to upgrade 130 kilometer railway track from Maho to Omanthai. This project will be under concessional financing.
During the agreement signing between IRCON International Limited and Government of Sri Lanka in Colombo, Arjuna Ranatunga, Minister of Transport and Civil Aviation was present. The project will include 130 km track, 12 crossing stations, 7 halt stations and 78 level crossings.
The track is being upgraded first time in 100 years. Post upgradation speed of railway will double from the current around 60 km to 120 km per hour, also reduce the maintenance costs. US$ 1.3 billion line of credit has been committed by India for development of railway sector in Sri Lanka.
The tsunami-affected Southern Railway line was also upgraded under Indian Line of Credit. India has so far upgraded around 300 km of railway track and provided modern signaling & telecommunication system for around 330 km in Sri Lanka.
Line of Credit Agreement for US $ 318 million for the development of railway sector was signed in June 2017.