The Government of India has released the first payment of approximately USD 2.5 million (LKR 770 million) for the installation of a modern signalling and telecommunication system on the Maho–Anuradhapura railway line. The grant underscores a new phase in Indo–Lanka collaboration in the rail transport sector.
The project, initially planned as a USD 14.89 million Line of Credit (LoC) initiative, was converted into a full grant during the Sri Lankan President’s state visit to India in December 2024. It was formally launched in April 2025 by the Indian Prime Minister and the Sri Lankan President and is being implemented by Ircon International Limited, an Indian state-owned enterprise. Completion is expected by August 2026.
This advanced system will complement the upgraded Northern Line tracks, which now support speeds up to 100 kmph. The new signalling technology aims to improve passenger safety, increase train frequency and efficiency, and reduce delays. It includes real-time train tracking, centralized monitoring via a modern Control Centre, and improved scheduling through simultaneous dispatch and reception of trains at stations.
India has been a longstanding partner in Sri Lanka’s railway development, contributing roughly USD 1.2 billion in assistance. Projects have included track upgrades, the supply of locomotives and coaches, and installation of signalling systems across about 400 km of rail network. Nearly 500 km of railway track has been constructed or rehabilitated with Indian support to date.
This latest initiative reflects India’s commitment to people-centric development and enhancing connectivity across Sri Lanka.
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