Sri Lanka, June 25 -- The bilateral loan agreement between the Sri Lankan and Japanese Governments has no conditions on compensation or penalties to be paid in case of delay or cancellation of the Japan International Cooperation Agency (JICA)-funded Colombo Light Rail Transit (LRT) project, Urban Development, Water Supply and Housing Facilities Ministry Secretary Dr. Priyath Bandu Wickrema said.

Commenting on the lead news of a daily Sinhala newspaper (Not of the Lake House Group) published on June 23, the Secretary denied the claim that the Government of Sri Lanka (GoSL) will have to pay compensation of US$ 100 million along with a penalty of Rs. 1 million to the Japanese Government if the proposed project is suspended.

He was speaking...