India commits US$ 1.3 billion line of credit to Sri Lanka for development of country’s railway sector
The Indian High Commission in Colombo has announced that India has so far committed Lines of Credit worth around US$ 1.3 billion for the development of railway sector in Sri Lanka.
The High Commission issuing a statement has noted that the restoration of arterial railway lines, connecting the North and the South after decades of conflict, was undertaken under Indian concessional financing.
The tsunami-affected Southern Railway line was also upgraded under Indian Line of Credit. India has also supplied rolling stock to Sri Lanka and contributed to capacity building of Sri Lankan railway personnel.
India remains ready to assist Sri Lanka to meet its developmental aspirations as per Sri Lanka’s own requirements, the High Commission has added.
According to the High Commission, in June 2017, India signed a fresh Line of Credit Agreement for US$ 318 million for the development of railway sector in Sri Lanka.
Under this Line of Credit, various projects are underway including procurement of 160 passenger coaches; up-gradation of railway track from Maho-Omanthai; up-gradation of signal and telecommunication system from Maho to Anuradhapura; and setting up of a Railway Workshop in Ratmalana, the Indian High Commission statement has further noted.
OSL take:
The commitment of approximately US$ 1.3 billion line of credit by India to Sri Lanka indicates the close bi-lateral ties enjoyed by the two nations. Sri Lanka and India has an active free trade agreement as well. India has played an active role as Sri Lanka’s development partner. Therefore, business opportunities between the two countries are very high. Foreign businesses/investors interested in doing business with India could look at setting up base in Sri Lanka in order to get the trade benefits enjoyed by Sri Lankan businesses in India. On the other hand, given Sri Lanka’s continuous efforts to develop its railway sector, foreign businesses engaged in rail transport could explore business opportunities in Sri Lanka’s railway sector as well as help build supplementary facilities.
| Article Code : | VBS/AT/28012019/Z_7 |