India wins railway line, telecommunication system development contracts from Sri Lanka

Indian Railway Construction International Limited or IRCON, an Indian government owned company, has won the contract to reconstruct Northern Railway Line and telecommunication.

The northern railway line was destroyed during the decades-long ethnic conflict in the island nation which ended last year in May with the defeat of the LTTE. Sri Lanka has also decided to sign a contract with China National Machinery Import and Export Corporation to develop the Matara-Beliatta railway line for $290 million.

The contract will also include signaling, telecommunication and ticketing systems and the maintenance of these systems. Negotiations are also in progress for IRCON to construct the line from Omanthai to Pallai while the Peoples Republic of China is proposed to be awarded the contract for construction of the rail line from Pallai to Kankesanthurai in Jaffna peninsula.