Urban Development and Housing Minister Prasanna Ranatunga said the Sri Lankan government is still negotiating with the Japanese government on the revival of the Japan-funded Light Rail Transit (LRT) project. He said that it is expected to begin again shortly. Attention has been focused on re-estimating this project during a diplomatic discussion held between the Government of Sri Lanka and the Government of Japan. The estimated cost for this has increased than the original estimate due to the COVID pandemic and the economic crisis. However, it will be possible to reactivate the process of relocation of public facilities and land acquisition next year following the decisions taken in the discussions by the Government of Sri Lanka with the Government of Japan. A preliminary feasibility study had been conducted for this project. An international consulting company was appointed to provide detailed plans, contract documents, tender documents, estimates and monitoring services related to the construction of LRT from Malambe to Pettah and the funds allocated for this process was US$ 120 million. This preliminary work was started in April 2019 and it was to be completed in 91 months. However, the project was halted on December 31, 2020, after the consultation period of 21 months. When these consultation activities were stopped, 60 percent of the basic plans of the scheme and 78 percent of the detailed plans were completed. Soil tests as well as pre-feasibility study was also completed till Malambe. The acquisition of land for the project has also started and the land size identified for the project is 22 hectares. Eventhough most of the land acquisition process has been completed, compensation for the respective acquired lands has not been paid so far.
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