India has suspended fresh loan or Line of Credit (LoC) projects in Sri Lanka given the current economic situation, the Daily Mirror reports.
Instead, India will focus on grant projects and investments, particularly those related to connectivity projects.
Among the ongoing loan projects is the design, installation, testing, and commissioning of a signalling system for Sri Lankan Railways, spanning from Maho to Anuradhapura. The line of credit for this project is US $14.90 million.
These ongoing projects will not be affected by the new decision. Recently, Sri Lanka concluded its bilateral debt restructuring with India and other countries, with India being one of the three main bilateral creditors to Sri Lanka.
Additionally, India has converted the development of the Kankesanthurai port into a grant project. Previously, India had announced over US $60 million in loans for this project, which has now been converted into a grant.
Earlier, Japan announced the resumption of 11 projects that had been stalled due to the economic crisis but stated it would not approve any fresh yen loans until the country’s situation improves satisfactorily.
The Japanese projects to be resumed include the 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 payment remaining), 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.
Source – dailymirror.lk
