India approves USD 318 million loan for Sri Lanka to upgrade its Railways

To upgrade Sri Lanka’s communications system India has approved a USD 318 million loan for it. The money will be used to improve the signal system from Maho to Anuradhapura in the north central province and from Anuradhapura to Omanthai in the north, said ayantha Karunathilake Sri Lankan government spokesman and minister.

The money will also be used to buy six power sets with air-conditioned carriages, 10 engines and 160 carriages, 30 wagons with oil tanks and 20 container carrying wagons.

The Cabinet had  approved a proposal by Prime Minister Ranil Wickremesinghe to enter into an agreement with Exim Bank of India for the loan. Earlier also India has given loans of about USD 996 million to develop Sri Lanka's railway service.