$67.4 mn Exim Bank credit to upgrade Lankan rail project

The Export-Import (Exim) Bank of India has signed an agreement with the Sri Lankan government to provide credit of $67.4 million for upgrading the island nation’s southern rail line. The agreement was signed by Sri Lankan finance ministry secretay P B Jayasundera and Export-Import Bank of India executive director Prabhakar Dalal in the presence of Ashok K Kantha,the High Commissioner of India in Colombo.

The line of credit will fund the second phase of the upgradation of Southern Railway Line from Colombo to Matara, Exim Bank said in a statement.

The Export-Import Bank of India had earlier provided a line of credit of $100 million under an agreement signed in July 2008. The implementation of the first phase of the upgradation of the Southern Railway Line is currently on.

The credit is also being used for supply of 20 sets of Diesel Multiple Units,three units of locomotives,spare parts for the existing M8 class locomotives,supply of plant and machinery for maintenance of existing DMUs and construction of maintenance sheds by RITES India Ltd.