ANNOUNCEMENT 26 Nov 2010A new trade finance transaction was announced in November 2010.
NUMBER OF INTERVENTIONS
The credit for this transaction 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.
On 26 November 2010, the Government of India agreed to provide a loan of USD 416.39 million to the Government of the Federal Democratic Socialist Republic of Sri Lanka for financing goods and services to be used for the following railway track development projects.
(i) Track laying by Indian Railways Construction Company Ltd (IRCON) on the Omanthai- Pallai sector (USD 185.35 million),
(ii) Track laying by IRCON on the Madhu Church-Tallaimannar sector (USD 149.74 million), and
(iii) Track laying on the Medawachchiya- Madhu railway line (USD 81.30 million).
The credit is provided by the Export Import Bank of India (EXIM) and requires that at least 85% of the contract price for goods and services associated with the projects is sourced from India.
The credit agreement entered into force on 24 January 2011.