The Light Rail Transit System (LRT) project funded by Japan has not been cancelled, but is under review, the Government said.
State Minister of Urban Development, Coast Conservation, Waste Disposal and Community Cleanliness, Dr. Nalaka Godahewa said the construction of a 15.8 km LRT track between the Colombo Fort area and Malabe is under review.
According to the Daily News, Godahewa had pointed out that the report on the LRT project had revealed that the one lane to be funded by the Japan International Cooperation Agency (JICA) loan was too expensive.
State Minister Dr. Nalaka Godahewa said therefore, a decision was taken to remove that particular part from the project, as the Government had anticipated that with the devaluation of the rupee the Japanese loan amount will further increase.
He said the report on the project reveals that a 1km stretch to be built by JICA funding costs has been estimated over US$ 2 billion, as against US$ 400 for the other three lanes.
State Minister Dr. Nalaka Godahewa assured that the remaining part of the plan to construct the LRT will continue.
He said a meeting will be held with the Finance Ministry and subject Minister and Prime Minister Mahinda Rajapaksa to receive further instructions on the project. (NewsWire)