Sri Lanka signs deal with India to purchase 160 passenger coaches under Indian line of credit

Sri Lanka signs deal with India to purchase 160 passenger coaches under Indian line of credit

The Indian High Commission in Colombo has announced that the state owned Sri Lanka Railways has inked a US$ 82.64 million deal to buy 160 passenger coaches from India’s RITES Ltd.
RITES Ltd, an Indian state firm will be paid from a US$ 318 million through the line of credit given by the Exim Bank of India in June 2017 to upgrade Sri Lanka’s rail tracks and rolling stock.
Accordingly, RITES Ltd. will also supply 6 diesel multiple units (DMUs) and 10 locomotives to Sri Lanka. Texmaco Rail & Engineering Ltd, a private firm will supply 20 container carrier wagons and 30 fuel tank wagons.
The Indian High Commission has also stated that the rolling stock will also be paid from the credit line.
The High Commission has further noted that the passenger coaches will be custom made to suit the requirement of Sri Lanka railways.
Mukesh Rathore, Director (Technical), RITES Ltd. and G S Withanage, Secretary, Ministry of Transport and Civil Aviation of Sri Lanka, had signed the deal.

OSL take:

The deal signed between Sri Lanka India to purchase 160 passenger coaches for Sri Lanka Railways through an Indian Line of Credit while indicating the strong ties between the two countries, also shows a business opportunity for foreign businesses. Apart from India’s state owned RITES Ltd., container carriers are being purchased from a private sector company as well. Therefore, private sector businesses engaged in rail transport could explore similar opportunities and also look at assisting Sri Lanka Railways upgrade its fleet.

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Article Code : VBS/AT/11092018/Z_3

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