A Light Railway Transport (LRT) network will be launched this year as a measure to ease the traffic congestion in and around Colombo city.
Japan has agreed to grant a credit line of 1,850 million US dollars to meet its cost, the Ministry of Finance and mass Media said in a statement issued yesterday.
The statement added that the proposed railway line from Colombo Fort to Malabe with 16 Railway stations will be 17 kilometres in extent and the Japan International Cooperation Agency (JAICA) has volunteered to assist the project with Funding and Technological advice. The Cabinet Paper regarding this programme submitted by Finance and Mass Media Minister Mangala Samaraweera has gained approval.
The JAICA loan carrying a very low interest of 0.1 percent has to be rapid within 40 years with a grace period of 12 years.
The Megapolis and Western Development Ministry which handles this project is expected to commence work on the project within this year.
JAICA will provide the funding between 2018 and 2024 in 6 stages and 260 million US dollars would be provided under the first stage. The recommendation made by Minister Samaraweera to enter into an agreement with JAICA in this regard has also gained Cabinet approval.