India suspends new loan projects given current economic status in Sri Lanka

12 July 2024 08:04 am Views - {{hitsCtrl.values.hits}} 31 Bookmark

A A A

Colombo, July 12 (Daily Mirror) - India has suspended fresh loan or Line of Credit (LoC) projects in Sri Lanka given the current status of the economy, Daily Mirror learns.

Instead, Daily Mirror learns India will shift attention further on projects based on grant projects and investments similar to connectivity projects.

Main among such loan projects currently in progress is the design, installation, testing and commissioning of a signalling system for Sri Lankan Railways, spanning from Maho to Anuradhapura. The line of credit is US $ 14.90 million.

Such ongoing projects will not be affected by the new decision. Sri Lanka recently concluded its bilateral debt restructuring with India and other countries. India is one of the three main bilateral creditors to Sri Lanka.

India has also converted the development of the Kankesanthurai port to a grant project. India previously announced over US $ 60 million loan for it. Now it has been converted to a grant instead.

Earlier, Japan also announced that it will resume 11 projects stalled due to the economic crisis but will not approve any fresh yen loan until the situation improves in the country satisfactorily.

The Japanese projects to be resumed are Kandy City Wastewater Management Project, Bandaranaike International Airport Development Project (Phase 2), Habarana-Veyangoda Transmission Line Construction Project, Anuradhapura North Water Supply Project (Phase 1), New Bridge Construction Project over the Kelani River (Construction completed, only the payment to be done), Digitalization of Terrestrial Television Broadcasting Project, National Transmission and Distribution Network Development and Efficiency Improvement Project, Anuradhapura North Water Supply Project (Phase 2), Rural Infrastructure Development Project, Kalu Ganga Water Supply Expansion Project (I) and Health and Medical Service Improvement Project.