Sri Lanka will enter into an agreement with EXIM Bank of India to obtain a loan of US$ 318 million for the improvement of the railway system in Sri Lanka.

Indian Prime Minister Narendra Modi  who was here in Sri Lanka in 2015 has agreed to grant this loan for Sri Lanka for the improvement of the railway sector.

This loan amount is expected to be utilized in improving the signal system from Maho to Anuradhapura and Anuradhapura to Omanthai. And also it will be utilized to purchase six power sets with AC carriages, 10 engines, 30 wagons with oil tanks, 20 container carrying wagons, and 160 carriages.

The proposal made by Prime Minister Ranil Wickremesinghe , in his capacity as the Minister of National Policies and Economic Affairs in this regard has been approved by the Cabinet of Ministers.