Sri Lanka suspends $1.5 billion Colombo light rail project

COLOMBO: Sri Lanka has suspended a $1.5 billion Japanese-funded light rail project for Colombo, Reuters reported.

“It is on temporary hold because of foreign exchange difficulties we are facing now. Some other projects have also been temporarily halted,” Monti Ranatunga, secretary to the Secretary to the ministry of transport, told Reuters.

The project, meant to ease congestion in the city, was being financed through a $1.4 billion soft loan from the Japan International Cooperation Agency.

Earlier, local media reported that President Gotabaya Rajapaksa had written a letter asking the transport ministry to cancel the light rail project because of high costs.

Rajapaksa’s office confirmed the despatch of a letter, Reuters added.