Yal Devi to run to Kankesanthurai by end 2013

• $ 150 m project to be financed by India

The famous Yal Devi will steam on once again to Kankesanthurai from Colombo by end of 2013 under a project kicked off yesterday by the Government with financing from India.

An agreement for the restoration of the Pallai-Kankesanthurai Railway Line in the Northern Province was signed yesterday and the US$ 150 million project is likely to be completed within two years from the date of commencement of the work.

The length of the Pallai-Kankesanthurai Railway Line is approximately 56 km.

This project would be funded as a part of the Line of Credit of US$ 800 million, which has been extended by the Government of India at concessional terms, at an interest rate of LIBOR plus 0.5% (with LIBOR capped at 3%) and a repayment period of 20 years (with a five-year moratorium).  The Southern Coastal Railway Line Project is also being funded under an additional line of credit of US$ 167.4 million provided by the Government of India.

An agreement in this connection was signed yesterday between B.A.P. Ariyarathna, General Manager, Sri Lanka Railways and Mohan Tiwari, Managing Director, IRCON (a Government of India Undertaking) in the presence of Kumara Welgama, Minister of Transport, Ashok K. Kantha, High Commissioner of India, Dhammika Perera, Secretary, Ministry of Transport and A.P. Mishra, Member (Engineering), Ministry of Railways, Government of India.

In his remarks at the signing ceremony, Minister Welgama noted the deep bonds of friendship between the two countries and expressed his appreciation for the assistance provided by the Government of India. He lauded IRCON for having built a reputation in Sri Lanka for completing projects efficiently and on schedule.

He recalled that, before the damage to the railway line connecting the Northern Province to the rest of Sri Lanka, the well-known Yala Devi Express used to ply on this route.

The completion of the project and the restoration of the railway line would enable Sri Lanka Railways to restart the services of Yala Devi Express, thus enhancing connectivity with northern Sri Lanka and boosting economic opportunities.

High Commissioner Kantha echoed the sentiments of the Minister and noted that the work on implementation of the three contracts signed earlier between IRCON and Sri Lanka Railways, involving construction of rail-links on the Omanthai-Pallai, Medawachchiya-Madu and Madu-Talaimannar segments, were progressing smoothly and were expected to be completed on schedule, by the middle of 2013.

He expressed hope that the work on reconstruction of the railway network in the north, including on the Pallai-Kankesanthurai segment, would be completed by the end of 2013, thereby giving a big boost to connectivity and economic development in Sri Lanka.

The completion of these projects, coupled with the implementation of the ongoing projects for rehabilitation of the Kankesanthurai Harbour and the restoration of the ferry service between Rameswaram (India) and Talaimannar would also greatly promote connectivity, bilateral trade and people-to-people exchanges between India and Sri Lanka.

The High Commissioner highlighted that these projects were in the nature of partnership projects between the two countries. In this context, he also expressed satisfaction about the fact that IRCON had successfully completed work on the Galle-Matara section of the coastal railway line in February this year and the ongoing work on the Galle-Kalutara segment was likely to be completed by March 2012, ahead of schedule.