ANNOUNCEMENT 17 Jan 2012A new trade finance transaction was announced in January 2012.
NUMBER OF INTERVENTIONS
On 17 January 2012, the Government of India agreed to provide a loan of USD 382.37 million to the Government of Sri Lanka for financing machinery, equipment, goods and services to develop the following:
- track-laying on the Pallai-Kankesanthurai Railway Line (USD 149.34 million),
- setting up of signaling and telecommunications system for the Northern Railway Line (USD 86.52 million), and
- any other contracts that may be mutually approved by the Government of Sri Lanka and the Government of India in Sri Lanka (USD 146.51 million).
The credit is provided by the Export Import Bank of India (EXIM) and requires that at least 75% of the contract price for goods and services associated with the project is sourced from India.
The credit agreement came into force on 11 April 2012.