The Sri Lanka Railways has been granted USD 168 million to upgrade the tsunami affected coastal railway and to strengthen the operating fleet of the Railways Department.

Accordingly, the existing rail track from Kalutara to Matara is to be replaced by an improved track made of concrete sleepers and new rails, while a new, advanced signal system will also be installed. The Indian Rail Construction Company has taken up the renovation project estimated to cost US $ 78 million.

Among the other benefits to be received under the ICL are 20 new diesel electrical power sets and three engines for the Railways Department, to be purchased from Rail India Technical and Economy (RITE). Three locomotives required for track maintenance and maintenance machinery worth US $ two million will also be provided under the scheme.

The agreement relating to the supply contract was signed between RITE representatives and Transport Ministry Secretary Thilak Kollure yesterday, in the presence of Transport Minister Dullas Alahapperuma.