Loans worth $ 278 million from China has been approved by the Cabinet for the Matara-Beliatta section of the Matara-Kataragama Railway Line extension project to boost the transport system in the south.
The project is planned to be implemented in three stages. Stage 1 includes the construction of the railway line from Matara to Beliatta, Stage 11 from Beliatta to Weerawila and Stage 111 from Weerawila to Kataragama.
Accordingly, the Exim Bank of China will provide a loan of US$ 200 million and a Chinese Government Concessional Loan of Renminbi Yuan 508 million to cover the total cost of US$ 278.2 million of the Matara-Beliatta section.
As per a proposal submitted by the President, the Cabinet at its meeting held on 22 August has granted approval to enter into the relevant loan agreements.