The loan has an annual interest rate of 2% and is repayable over 20 years, including a five-year grace period. The funds will be used for the initial 26.8km section between Matara and Beliatta, which is already under construction.

The second phase of the $US 363m project involves extending the line 48km east from Beliatta to Hambantota, while the final phase covers the remaining 39.5km to Kataragama.