COLOMBO (Reuters) – Sri Lanka’s President will prepare an appropriate time frame to reactivate the Light Railway Transit Project with Japan, which was suspended in 2020 citing financial woes.

The island nation is now on a path to recovery after facing its worst financial crisis in more than seven decades last year. A $2.9 billion bailout from the IMF in March helped tame inflation in the country as dollar inflows improved.

The cabinet on Wednesday gave approval for President Ranil Wickremesinghe to decide on the appropriate time frame to reactivate the $2.2 billion project with Japan, the country’s media ministry said on Wednesday.

In 2020, Sri Lanka suspended the light rail project meant to ease congestion in the capital Colombo, citing financial problems.

(Reporting by Uditha Jayasinghe, writing by Tanvi Mehta in New Delhi; editing by Sudipto Ganguly)

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