The construction work on Medawachchiya-Madhu segment is expected to be completed on schedule by the middle of 2013. According to the Ministry of Transport, attention has been paid to complete its construction expeditiously.
Sri Lanka signed a commercial agreement with India last year for Indian assistance to reconstruct the Northern Railway Line from Medawachchiya to Thalaimannar, destroyed by the LTTE terrorists.
The reconstruction work is being carried out in two phases. In the first phase, the 43 kilometer track from Medawachchiya to Madhu is being reconstructed at a cost of US $ 81.3 million. Madhu to Thalaimannar segment will be built at a cost of US $ 149.74 million.
The reconstruction of the Medawachchiya-Thalaimannar railway line is being carried out by the Indian Railway Construction Company Limited (IRCON).This project has been funded as a part of the Line of Credit of US $800 million, which has been extended by the Indian Government at concessional terms.
The completion of the project, coupled with the restoration of the ferry service between Rameswaram (India) and Talaimannar, would greatly promote connectivity, bilateral trade and people-to-people exchanges between India and Sri Lanka.