The Japan International Cooperation Agency (JICA), a government lender, will loan Sri Lanka 30 billion Japanese yen ($268m) to build a light rail system in the country’s capital, Colombo.
The signing ceremony
The 15.7km line will have 16 stations, and is intended to reduce air pollution and "stimulate socioeconomic activities" according to the JICA news release.
Through the loan, JICA stipulates that a Japanese firm must lead the contract, and if entering into a joint venture with a Sri Lankan firm it must be the leading partner.
Japanese technology including trains and electromechanical equipment will be used on the project.
Tendering for the project is due to be begin in March 2020, and the development is due to be completed in April 2026.