CHINA National Machinery Import & Export Corp has proposed a technology transfer and US$50m credit agreement to supply Sri Lanka Railways with stainless steel passenger carriages.

The Chinese company would initially supply completed vehicles under the proposals, which were put to Minister for Transport, Highways & Aviation Tilak Marapana in April. In parallel with this, China would help to establish a modern rolling stock assembly plant on redundant railway land in Sri Lanka. This would be built in collaboration with Colombo Dockyard Ltd and the International Industrial Trade Promotion Consortium, and provide around 750 jobs.