News
Railway project with US$ 1b loan from China
The Government will seek a loan of one billion US dollars from the Exim Bank of China for what could easily be the costliest project in Sri Lanka – the building of an 88 kilometre rail track from Kurunegala to Habarana.
The construction work is to be awarded to the China State Construction Engineering Corporation Limited (CSEC) and will be part of President Maithripala Sirisena’s “Let’s Awaken Polonnaruwa” programme.
Ministers were to discuss a memorandum by Transport and Civil Aviation Minister Nimal Siripala de Silva at their meeting last Tuesday. However, it has been delayed until the observations of the Finance Ministry are received.
In an earlier Cabinet memorandum recommending the project, President Sirisena noted that the construction of railways “linking the principal commercial towns” was being recommended as major and priority requirements.
However, experts in the transport sector hold a different view. One of them pointed out that a railway line from Kurunegala to Maho junction now exists. The distance from this junction to Palugaswewa just near Habarana is only is ten kilometres. The track is designed to pass through jungle. Moreover, they point out that according to Sri Lanka Railways, the routes from Maho Junction to Trincomalee and Batticaloa have the least passenger revenue and freight income.
The Central Environmental Authority has already given approval for the project. Transport Minister de Silva has said: “According to the design, the total length of the track from Kurunegala to Habarana via Dambulla is 88 kilometres with an additional four kilometres double track to the Dambulla Economic Centre. There are six main stations located at Ibbagamuwa, Melsiripura, Galewala, Dambulla, Sigiriya (Inamaluwa) and Habarana with sub-stations to be constructed at Thorayaya, Gokarella.
halkiriyagma and Digampathana.” The Transport Minister added: “Three tunnels are to be constructed at Ibbagamuwa, Polgolla and Omaragolla and several bridges, viaducts, overpasses and underpasses are also designed to be constructed at several locations, one underpass for providing an ‘elephant crossing.’…..”
Minister de Silva has called upon the Cabinet to “declare this as a special project and allow exemption from payment of VAT, NBT, Customs duties and other taxes…”