Japan agrees $1.85bn loan for Light Rail Transit system

<p>Japan International Cooperation Agency (JICA) has agreed a $1.85 billion loan to Sri Lanka to build a Light Rail Transit (LRT) system.&nbsp;</p> <p>The agreement was put on hold in November in response to the country's political turmoil which followed the president's sacking of the prime minister and attempt to dissolve parliament.&nbsp;</p> <p>JICA will also provide technical assistance for the project.&nbsp;</p> <p>The LRT, aimed at reducing congestion in Colombo, will run for 17km between Colombo Fort and Malambe.&nbsp;</p> <p>The loan will be given at an interest of 0.1% over 40 years, with 6 installments to be made before 2024. The first repayment will be for US $260 million.&nbsp;</p>