India is funding a 150 million U.S. dollars railway line to connect the former war-torn north of Sri Lanka for the first time in decades, an official statement said here on Monday.
An agreement for the restoration of the Pallai-Kankesanthurai Railway Line in the Northern Province was signed between Sri Lanka and India, a statement by the Ministry of Transport said.
The project is likely to be completed in 2013, according to the ministry.
The length of the Pallai-Kankesanthurai railway line is approximately 56 km.
This project would be funded as a part of an 800 million U.S. dollars credit line extended by the Indian government at concessional rates with a repayment period of 20 years.
Another railway project in southern Sri Lanka is also being funded under an additional line of credit of 167.4 million U.S. dollars provided by the Indian government.