China Exim Bank to fund construction of Polonnaruwa Railway Extension project

In April 2016, a MOU was signed between China and Sri Lanka for the construction of a railway extension project in Polonnaruwa district through a concessional loan of a $1 billion given by China's EXIM Bank. The railway was intended to run from Kurunegala to Habarana via Dambulla. On October 2, 2018, this project was suspended due to the cost and design associated with the project. Before the suspension in 2018, the Central Environmental Authority of Sri Lanka gave approval for the project. According to the Minister of Monistry of Transport, Silva, the total length of the track from Kurunegala to Habarana via Dambulla is 88 kilometres with an additional four kilometres double track to the Dambulla Economic Centre. There are six main stations located at Ibbagamuwa, Melsiripura, Galewala, Dambulla, Sigiriya (Inamaluwa) and Habarana with sub-stations to be constructed at Thorayaya, Gokarella. Thalkiriyagma and Digampathana. Three tunnels are to be constructed at Ibbagamuwa, Polgolla and Omaragolla and several bridges, viaducts, overpasses and underpasses are also designed to be constructed at several locations, one underpass for providing elephant crossing. The project was declared as a special project and allow exemption from payment of VAT, NBT, Customs duties and other taxes, etc.

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