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India spent over USD one bn to upgrade railway sector here – Indian HC Colombo
The Indian High Commission on Sunday (07) declared that in spite of the debt repayment suspension announced by Sri Lanka in April 2022, the Modi government continued to extend assistance to the southern neighbour under various Lines of Credit (LOCs).
In September 2023, the Ministry of Transport and Highways of Sri Lanka and IRCON International signed a new Contract for design, installation, testing, and commissioning of a Signalling system for Sri Lanka Railways, from Maho to Anuradhapura, at a cost of USD 14.90 million under an Indian LOC, the HC stated.
The following is the text of a statement issued by the HC after Transport and Highways Minister Bandula Gunawardena and High Commissioner of India to Sri Lanka Santosh Jha on Sunday ceremonially launched track rehabilitation work at Galgamuwa Railway Station commencing upgrading of the Railway Line including ancillary works from Maho to Anuradhapura, the second phase of a Line of Credit project for track rehabilitation from Maho- Omanthai (128Km) being undertaken by an Indian Public Sector company, IRCON, under an Indian Line of Credit (LOC) of USD 318 million.
The cost of the entire project is USD 91.27 million of which the 2nd phase of rehabilitation from Maho-Anuradhapura is scheduled to be completed in a period of six months. Hon. State Minister of Mass Media Shantha Bandara and senior officials from the Sri Lankan Ministry of Transport were also present at the event.”
The statement quoted the Minister of Transport as having thanked India for the support extended to Sri Lanka, especially in the transport sector. Appreciating the work carried out by IRCON in Sri Lanka in the past few years, he called for greater Railway cooperation between the two countries.
The High Commissioner expressed happiness that as a long-standing development partner of Sri Lanka, India had executed projects for development and rehabilitation of Sri Lanka’s Northern and Southern Railway line over the past several years, in line with the priorities and requirements of the Government of Sri Lanka. He underscored the importance of modernization of Railways in enhancing mobility of goods and services in Sri Lanka thereby boosting economic activity.
“Railways has been one of the priority sectors for Government of India’s assistance to Sri Lanka. Till date, India has executed projects of over USD 1 billion in the Railways sector under 5 Indian LOCs. India’s public sector company, IRCON, started its operations in Sri Lanka in March 2009 and has contributed towards modernization of Sri Lanka Railways by reconstructing the entire railway line network in Northern Province (253 Km) and upgradation of Southern line (115 km). It has also contributed to ensuring safety and reliability through a modern signaling & telecommunication system on 330 km stretch of Railway line.”
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India’s External Affairs Minister meets Sri Lanka PM
India’s External Affairs Minister, Dr. Subramaniam Jaishankar, met with the Prime Minister of Sri Lanka, Dr. Harini Amarasuriya, on 23 December at Temple Trees, during his visit to Sri Lanka as the Special Envoy of Indian Prime Minister Shri Narendra Modi.
The meeting took place as part of the official visit aimed at holding discussions with Sri Lanka’s top leadership, at a time when the nation commenced reconstruction efforts following the devastation caused by Cyclone Ditwah.
During the discussions, the Minister of External Affairs of India reaffirmed readiness to extend support for Sri Lanka, including assistance in rebuilding railways, bridges, and strengthening of the agricultural sector in the country. He also highlighted the importance of having effective systems in place to respond to disaster situations, supported by strong legislative, administrative, and institutional frameworks. Both sides reviewed ongoing relief efforts and explored avenues to further strengthen bilateral cooperation in disaster response and recovery.
The Prime Minister commended the Government of India for the continued support, noting that the recovery process following the devastation caused by Cyclone Ditwah include beyond immediate relief efforts to long-term measures such as resettlement, and reconstruction of habilitation and infrastructure.
The Prime Minister further stated that steps have been taken to reopen schools as part of the process of restoring normalcy, with close monitoring in place. The Prime Minister emphasized the need to ensure stability, reduce vulnerability, and strengthen protection mechanisms highlighting the solidarity of the people, their strong spirit of volunteerism, and collective action demonstrated during the emergency situation.
The event was attended by the High Commissioner of India Santosh Jha, Additional Secretary (IOR), MEA Puneet Agrawal, Joint Secretary (EAMO), MEA Sandeep Kumar Bayyapu, Deputy High Commissioner Dr. Satyanjal Pandey, and representing Sri Lankan delegation, Secretary to the Prime Minister Pradeep Saputhanthri, Additional Secretary to the Prime minister Ms.Sagarika Bogahawatta, Director General (South Asia), Ministry of Foreign Affairs Samantha Pathirana, Deputy Director, South Asia Division, Ministry of Foreign Affairs Ms.Diana Perera.
[Prime minister’s media division]
News
Sri Lanka’s coastline faces unfolding catastrophe: Expert
Sri Lanka is standing on the edge of a coastal catastrophe, with the nation’s lifeline rapidly eroding under the combined assault of climate change, reckless development and weak compliance, Director General of the Department of Coast Conservation and Coastal Resource Management (DCC&CRM) Dr. Terney Pradeep Kumara has warned.
“This is no longer an environmental warning we can afford to ignore. The crisis is already unfolding before our eyes,” Dr. Kumara told The Island, cautioning that the degradation of Sri Lanka’s 1,620-kilometre coastline has reached a point where delayed action could trigger irreversible damage to ecosystems, livelihoods and national security.
He said accelerating coastal erosion, rising sea levels, saltwater intrusion and the collapse of natural barriers, such as coral reefs and mangroves, are placing entire coastal communities at risk. “When mangroves disappear and reefs are destroyed, villages lose their first line of defence. What follows are floods, loss of homes, declining fisheries and forced displacement,” he said.
Dr. Kumara stressed that the coastline is not merely a development frontier but the backbone of Sri Lanka’s economy and cultural identity. “More than half of our tourism assets, fisheries and key infrastructure are concentrated along the coast.
If the coast fails, the economy will feel the shock immediately,” he warned.
Condemning unregulated construction, illegal sand mining and environmentally blind infrastructure projects, he said short-term economic interests are pushing the coastline towards collapse. “We cannot keep fixing one eroding beach while creating three new erosion sites elsewhere. That is not management—it is destruction,” he said, calling for science-driven, ecosystem-based solutions instead of politically convenient quick fixes.
The Director General said the Department is intensifying enforcement and shifting towards integrated coastal zone management, but warned that laws alone will not save the coast. “This is a shared responsibility. Policymakers, developers, local authorities and the public must understand that every illegal structure, every destroyed mangrove, weakens the island’s natural shield,” he added.
With climate change intensifying storms and sea surges, Dr. Kumara warned that Sri Lanka’s vulnerability will only worsen without urgent, coordinated national action. “The sea has shaped this nation’s history and protected it for centuries. If we fail to protect the coast today, we will be remembered as the generation that allowed the island itself to be slowly eaten away,” he went on to say.
By Ifham Nizam
News
SOC examines proposed amendments to the Microfinance and Credit Regulatory Authority Bill
The Sectoral Oversight Committee (SoC)on Economic Development and International Relations recently examined the Microfinance and Credit Regulatory Authority Bill and the proposed amendments thereto.
The SoC met in Parliament under the chairmanship of Member of Parliament Ms. Lakmali Hemachandra, (Attorney at Law). A group of officials representing the Central Bank of Sri Lanka, the Department of Development Finance of the Ministry of Finance, Planning and Economic Development, and the Legal Draftsman’s Department participated in the meeting.
The Microfinance and Credit Regulatory Authority Bill was presented to Parliament for its First Reading on 26.11.2025. Accordingly, the Committee held an extensive discussion on the amendments that have been proposed to the Bill. The Chair of the Committee, Hon. Member of Parliament Ms. Lakmali Hemachandra, (Attorney at Law) stated that it is important to give careful and further consideration to this Bill and that discussions on the proposed amendments will be held again on a future date.
Members of Parliament Lakshman Nipuna Arachchi, Thilina Samarakoon, Nilanthi Kottahachchi, Attorney at Law, Sagarika Athauda, Attorney at Law, Suranga Ratnayaka, and Wijesiri Basnayake also participated in this Committee meeting.
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