Indian Railway Construction International Ltd has won an 86.5 million dollar deal to reconstruct rail lines in the island’s northern region of Wanni, a former war zone, the government said in a statement.

The northern rail-track was destroyed during the 37-year ethnic conflict that ended in May last year when government forces defeated the separatist Tamil Tiger rebels.

The government also awarded a 290-million dollar contract to China National Machinery Import and Export Corp to build a railway line in the south of the island, which was largely unaffected by the ethnic strife.

“The contract will also include signals, telecommunications, ticketing systems and their maintenance,” the government statement said.

It was not immediately known when the projects would be completed.(AFP)