President to decide on time frame to reactivate LRT talks with Japan

The Cabinet of Ministers this week approved a resolution allowing President Ranil Wickremesinghe to prepare an appropriate time frame to reactivate talks pertaining to the Light Railway Transit (LRT) project, which was suspended in 2020. 

Ranil Wickremesinghe

“Concurrence of the Cabinet of Ministers was granted regarding the resolution furnished by the president to prepare an appropriate time frame for entering into the agreement applicable, activating the discussions with the Japanese diplomatic mission in Colombo,” the Government Information Department said.Citing financial difficulties, the Gotabaya Rajapaksa administration cancelled the US $ 2.2 billion LRT project in 2020, which was started under Japanese loan assistance, with the aim of reducing traffic congestion in Colombo and providing a better transport service to the passengers.

The previous Yahapalana government in March 2019 entered into an agreement with the Japan International Cooperation Agency (JICA) for a Japanese soft loan of US $ 1.86 billion for the construction work of the LRT project.