A committee that was constituted to look into the nature of contract and the cost over-runs has raised several issues. The Lankan Cabinet has therefore decided to review the $800 million dollar project, according to Cabinet spokesman Rajitha Senaratne.

He told the media on Thursday that the investigating committee had found “enormous cost over-runs in the construction carried out by an Indian company; issues related to estimates; damages to sleepers; and defects in the buildings constructed.”

The committee has gone to the extent of observing that competitive bidding was not done and the Government suffered losses.

In this background, the Cabinet decided to give railway construction work to the Lankan Department of Railways from now on.

It is reported that the issue is being raised up by the Sirisena-Wickremesinghe government to expose former Minister of Transport, Kumara Welgama. Welgama is leading the United Peoples’ Freedom Alliance’s campaign pushing for former President Mahinda Rajapaksa as new Prime Minister in the August 17 elections.

The Omanthai-Palai line (90.5 km) was started in 2010 and completed in 2013 at a cost of US$ 185.35 million. The Madu-Talaimannar stretch (63 km) was completed in three years in 2013 at a cost of US$ 149.74 km. The Medawachichiya-Madu track (43 km) was started in 2010 and completed in 2012 at a cost of US$ 81.30 million. The Palai-Kankesanthurai line (56 km) was started in 2011 and completed in 2014 at a cost of US$ 149.34 million. Signaling equipment cost US$ 86.50 million. And other expenditure, including personnel, amounted to US$ 146 million. The project was funded by a US$ 800 million Government of India Line of Credit.