Indian Railways engineering and construction firm IRCON International Limited has reached an agreement with the Sri Lankan government to upgrade around 130 km-long Maho-Omanthai rail line which is over 100 years old. The railway line is being upgraded under Indian concessional financing, and this is the first time that the track is being upgraded in 100 years. The contract agreement, worth $91.26 million, was signed in Colombo.

IRCON Chairman and Secretary, Ministry of Transport and Civil Aviation of Sri Lanka, signed the agreement in the presence of Minister of Transport and Civil Aviation of Sri Lanka. The upgradation will include modification of 12 crossing stations, seven halt stations and 78 level crossings. Addressing the gathering in Colombo, Ranatunga said that at present, trains are running with speed restrictions of 40 kmph on this section. The travel time too between Maho and Omanthai is about three hours with a maximum sanctioned speed of 60 kmph. After upgradation of this rail line, Jaffna bound trains will reportedly be able to travel at 120 kmph, providing safe, efficient and comfortable transportation to passengers in the Northern Province. It will also improve the travel comfort of passengers, and further contribute to the modernization Sri Lanka Railways, an official statement from the Indian High Commission in Colombo said.

So far, India has committed Lines of Credit worth around $1.3 billion for development of the railway sector in Sri Lanka. Under Indian concessional financing, the restoration of arterial railway lines, connecting the North and the South after decades of conflict, has been undertaken. The tsunami-affected Southern Railway line was also upgraded under Indian Line of Credit. India has so far upgraded around 300 km of railway track and provided modern signalling and telecommunication system for around 330 km in Sri Lanka.