COLOMBO: India agreed to supply 160 railway passenger coaches to Sri Lanka valued at around 82 million US dollars under concessional financing.
India has agreed to supply 160 railway passenger coaches to Sri Lanka valued at around 82 million US dollars under concessional financing. The agreement to supply coaches custom-made in India, was signed between RITES Limited of India and Sri Lankan government in Colombo last evening.
The current contract is part of a line of credit agreement for procurement of railway rolling stock and upgradation of rail tracks worth 318 million US dollars, which was signed between EXIM Bank of India and Government of Sri Lanka in June 2017.
Procurements of rolling stock from India which underway include 6 DMUs, 10 locomotives, 20 container carrier wagons and 30 fuel tank wagons.
India has already completed projects close to 1 billion US dollars under concessional financing in the railway sector in Sri Lanka including railway lines to Jaffna and Thalai Mannar.
An official from the Ministry of Transport Sri Lanka said that with the growth of tourism and road congestion, more passengers are traveling in trains and these train compartments would be used to meet this demand. The other objective is to retire aging rail carriages.