After the Sri Lankan economy found itself amid massive debt owed to China, India displayed remarkable magnanimity by supporting its neighbor in their time of need. India stepped up its assistance to Sri Lanka’s ailing railway system with an investment exceeding $1 billion through five Lines of Credit (LoC) projects.
However, Sri Lanka continues to grant permission for China to dock its communication spy ship to monitor India’s missile tests in our eastern seaboard. Despite this, India remains the sole creditor providing vital financial and other assistance to Sri Lanka’s railway network.
Ambassador Gopal Baglay, the High Commissioner of India in Sri Lanka, emphasized the significance of this signaling project, calling it a game-changer. It promises to provide smoother transportation, turbocharge economic recovery, and strengthen cooperation between the two nations. This information was shared by the Indian High Commission in its recent announcement on Thursday, September 21.
Ambassador Baglay also added that in the current climate, this LoC project symbolizes India’s unwavering commitment to stand by Sri Lanka, according to a report in the Economic Times.
A contract was signed between the Ministry of Transport and Highways of Sri Lanka and Indian Railway Construction International Limited (IRCON Ltd), a wholly-owned entity of Indian Railways, for the design, installation, testing, and commissioning of a signaling system for Sri Lanka Railways (SLR) from Maho to Anuradhapura. India provided funding under a $318 million LoC, a substantial sum for Sri Lanka’s railway infrastructure.
IRCON Ltd has completed various projects in Sri Lanka, including significant modernization and repair work for Sri Lanka Railways. One of the key projects carried out by IRCON was the complete track rehabilitation work from Anuradhapura to Omanthai. Starting in January 2024, work will commence on the Anuradhapura to Maho section, further enhancing Sri Lanka’s railway connectivity.
Sri Lanka’s Transport Minister, Bandula Gunawardane, expressed gratitude to India and singled out the unwavering support of Prime Minister Narendra Modi and the Indian government during financially challenging times. Gunawardane further stated that India has been the lifeline for Sri Lanka Railways, providing crucial Lines of Credit when essential maintenance seemed impossible.
Sri Lankan Railways faced dire straits, and as the island nation’s financial troubles worsened, leading to its most severe economic crisis to date, they were in no position to carry out necessary maintenance work. This resulted in frequent signal failures and train derailments, with a total of 117 train derailments in 2022.
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