India’s Ircon seeks more contracts in Sri Lanka’s rail network

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Ircon International Ltd, which completed a 265 km reconstructed rail network in northern Sri Lanka, says it is looking to expand its footprint in Sri Lanka.In a media statement issued this week, it has assured the Government of Sri Lanka of its continued support to uplift the transport sector and develop further the rail infrastructure of the country. These comments come on the back of railway experts and specialists including a former general manager and Transport Ministry Secretary urging the government to hire local firms and available expertise from Sri Lanka Railways for future projects, which is much cheaper.

Ircon said the Government’s actively considering the utilisation of the available Indian Line of Credit for financing these projects. “Furthermore a new line of credit amounting to US$318 million was also announced during the visit of the Indian Premier to Sri Lanka in March 2015. The Line of Credit is being extended by India as a soft loan having very attractive terms and very low interest rates. The issue of the upgrading of the railway track using Indian expertise and financial assistance was also discussed extensively during the visit of Prime Minister Ranil Wickremesinghe to India in September this year,” the release said. In the release, Project Director, IRCON, S.L. Gupta commenting on defects reported in the newly constructed railway lines in the North, said Ircon is committed to rectify the defects during the defect liability period and substantial steps are being taken in this regard.