Indian Assistance for Northern Railway Reconstruction in Sri Lanka

The commercial agreement for the construction of the Northern Railway Line between Omanthai and Pallai was signed today at the Ministry of Transport in the presence of the Hon. Minister of Transport, Mr. Dullas Alahapperuma and the High Commissioner of India, Mr. Ashok K. Kantha. The agreement was signed on behalf of IRCON International (a Government of India Undertaking which will construct the railway line) by Mr. S.L. Gupta and on behalf of Sri Lanka Railways by Mr. P.P. Wijesekara.

          The agreement is backed by a Government of India line of credit for USD 185 million.  It is part of a larger package of assistance directed at the  rehabilitation of railway infrastructure in the Northern Province of Sri Lanka, for which Government of India has committed a total amount of USD 425 million in lines of credit.  The agreement signed today follows similar agreements that have been signed earlier for the rehabilitation of the Southern Railway corridor, which had been extensively damaged in the 2004 tsunami.  Under that agreement, India is assisting in the rehabilitation of the Colombo-Matara rail link through a line of credit of USD 167.4 million.  Work on the Colombo-Kalutara sector of this line is already at an advanced stage.

          Speaking on the occasion, High Commissioner Kantha noted that the reconstruction of transport-related infrastructure was an essential requirement for the restoration of normal economic life in the Northern Province as it would both generate and support livelihood-related activities.  India remains committed to continuing its assistance to Sri Lanka as it undertakes the important and challenging task of reconstructing the Northern Province.