In a move aiming at boosting mobility and increasing economic activity in the cash-strapped island nation, the reconstruction work of a century-old railway track in northern Sri Lanka was inaugurated on Monday, which will be completed under India’s assistance.
The 43-km long reconstructed railway track, which falls between Medawachchiya and Madhu Road, represents the first phase of the project to reconstruct the Northern Railway Line that covers 252 km.
An Indian company that has contributed to several railway reconstruction projects in Sri Lanka, IRCON International is handling this project. Additionally, IRCON has also undertaken ancillary works from Maho to Omanthai, 128 km, under an existing line of credit (LoC) of USD 318 million, at a cost of USD 91.27 million.
The Indian High Commission said in a statement, “As a long-standing development partner of Sri Lanka, the Government of India executed several projects in Sri Lanka under its concessional loans and grant schemes. Of the different sectors of cooperation under these facilities, the upgradation and modernisation of Sri Lankan Railways has been one of the priority areas.”
Gopal Baglay, Indian High Commissioner, said the move underlined the significance of modernisation of Railways in boosting mobility of goods and services in Sri Lanka which would increase economic activity, and added that India has executed projects of over USD 1 billion in the Railways sector in Sri Lanka under five Indian LoCs.
Baglay said that projects of about USD 180 million are either ongoing or in pipeline under existing LoCs.
The High Commissioner underscored the importance of buttressing connectivity internally in Sri Lanka. He also underlined the connectivity with India for enhancing pilgrimages, tourism, trade and economic benefits for people from both countries.
“A glorious new chapter of India-Sri Lanka railway cooperation begins today with the ceremonial inauguration of railway track reconstruction work at Madavachi,” the Indian High Commission tweeted.
Following ‘Neighbourhood First’ policy, India has given several assistance to Sri Lanka to help the country fend off its worst economic and humanitarian crisis since its independence from Great Britain in 1948
Meanwhile, 125 SUVs were handed to the Sri Lanka Police by India under a line of credit in December last year to help the island nation address the serious mobility restriction issues faced by the police. India also supported Sri Lanka by giving 75 passenger buses as part of its assistance towards strengthening public transport infrastructure in the country.
Extending support to a neighbour in need, India gave financial assistance of nearly USD 4 billion to Colombo this year. In January 2022, India gave a USD 900 million loan to Sri Lanka in order to build up its depleted foreign reserves. Also, India offered a USD 500 million credit line to Sri Lanka to fund the country’s fuel purchases.
(With inputs from PTI)