Sweden has dropped plans to invest in rail links that would allow trains to travel at 320km/h, with the Swedish Transport Administration judging that limiting the links to a top speed of 250km/h makes more economic sense.

The announcement came as part of the agency's new investment plan for 2018-2029. In the plan, the agency envisages spending SEK 622.5 billion in developing and maintaining Sweden's rail and road infrastructure.

The agency's director-general Lena Erixon said during the announcement on Thursday that building less ambitious high-speed links made more sense. 

"We consider that if one builds in stages, it is important to make sure that...