The Japan International Cooperation Agency (JICA) has agreed to lend US $ 1.85 billion to Sri Lanka to build a light rail transit (LRT) service between Colombo Fort and Malambe to ease the congestion in the countryâs capital city.
The Finance and Mass Media Ministry in a statement yesterday said the funds will be borrowed at the concessionary interest rate of 0.1 percent, to be repaid within a 40-year period with a 12-year grace period.
The loan will be given in 6 instalments between the period 2019 and 2024. Sri Lanka will get US $ 260 million as the first instalment. Technical assistance for the 17km long rail project with 16 stops will also be provided by JICA.
The Cabinet of Ministers this week approved a proposal by the Finance and Mass Media Minister Mangala Samaraweera to hold negotiations and enter into an agreement with JICA in this regard.
The project will operate under the Megapolis and Western Development Ministry, and the work is expected to begin shortly.
The traffic in Colombo and the suburban areas has worsened in recent years with more and more people gathering to cities looking for better economic prospects.
It was estimated that 18.38 percent of Sri Lankaâs total population in 2017 lived in urban areas and cities.
The quality of Sri Lankaâs public transport has hardly improved during the last decade, and as a result the number of personal vehicles on the road has risen exponentially.
Due to the existing poor public transport system, purchasing a personal vehicle of some kindâa motorbike or a small car has become the dream of every youngster joining the countryâs workforce.
Sri Lankaâs vehicle import tax policy is manipulated by politicians during election times to sway public opinion in the hope of getting re-elected.
Although a light railway system may address the congestion on the roads of Colombo to a certain extent, the financial viability of such a project, if it is to be run by the State, is yet to be determined.
The overall rate of inflation, as measured by the National Consumer Price Index (NCPI), has…
The Public Health Inspectors (PHIs) Association has announced the establishment of 200 cigarette-free zones across…
Global rating agency, Moody’s yesterday upgraded the Government of Sri Lanka’s Long-Term Foreign Currency Issuer…
Despite Elon Musk's Starlink, the satellite unit of SpaceX, being granted licence to operate in…
The Western Province North Crime Division has arrested two individuals involved in an incident of…
The All Share Price Index (ASPI) of the Colombo Stock Exchange recorded a new all-time…