Government Signs USD 82 Million Contract With India To Purchase 160 Passenger Coaches Under Concessional Financing

The Sri Lankan government has signed a contract agreement amounting to US$ 82.64 million with an Indian company for the supply of 160 passenger coaches from India under concessional financing.

The agreement was signed between RITES Limited and Government of Sri Lanka in Colombo last Friday. 

The contract agreement was signed by Mukesh Rathore, Director (Technical), RITES Ltd. and  G.S. Withanage, Secretary, Ministry of Transport and Civil Aviation of Sri Lanka.

The passenger coaches will be custom-made in India to suit the requirements of Sri Lanka Railways.

A Line of Credit (LoC) Agreement of US$ 318 million for procurement of railway rolling stock and upgradation of rail tracks was signed between EXIM Bank of India and Government of Sri Lanka in June 2017 in Colombo. The current contract agreement for supply of 160 passenger coaches will be covered under this LoC.

Procurements of rolling stock from India which are underway also include 6 DMUs, 10 locomotives, 20 container carrier wagons and 30 fuel tank wagons.

RITES Ltd. will be supplying the DMUs and locomotives, whereas Texmaco Rail & Engineering Ltd. will be supplying the wagons.

India has already completed projects close to USD 1 billion under concessional financing in the railway sector in Sri Lanka.

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