Nine diesel power sets for railways

The Government has given approval to obtain a total of $ 93.8 million needed to purchase nine diesel power sets for the Railways Department. 

The proposal made by Prime Minister Ranil Wickremesinghe, in his capacity as the Minister of National Policies and Economic Affairs, to enter into loan agreements with the Hong Kong and Shanghai Bank Corporation (HSBC) and Hatton National Bank (HNB) for obtaining funds for the above project, was approved by the Cabinet this week.

A loan of $ 79,787,807 taken from HSBC will contribute to 85% of the total cost. The loan interest will be at a six-month London Inter-Bank Offered Rate (LIBOR) + 2% and is payable within 15 years which includes a two-year concessionary period. 

The rest of the funds will be sourced through a loan of $ 14,080,201 obtained in SriLankan rupees from HNB. The interest rate for the loan facility is set at a biannual Average Weighted Lending Rate (AWLR) + 2.25% and will be payable in 14 years and six months which includes a concessionary period of two years and six months.(CD)