Categories: Articles

LNP – Sri Lanka signs USD 500 mn loan agreement with China

The Government of Sri Lanka has signed a loan agreement of USD 500 million with the China Development Bank (CDB).

The Ministry of Finance stated that the relevant funds will be disbursed within this week.

Ambassador Dr. Palitha Kohona, on behalf of the government of Sri Lanka, signed the loan agreement with the China Development Bank at the Sri Lankan Embassy in Beijing on Monday (12).

“This loan will infuse vitally required foreign exchange into the Sri Lanka economy. These funds will help with Government efforts to facilitate rapid economic recovery following the setbacks caused by the Covid-19 pandemic,” the embassy said.

After the signature ceremony, Dr. Kohona stated that the timely assistance from China in providing these funds will help fuel Sri Lanka’s recovery efforts and stimulate growth.

Dr. Kohona further opined that this USD 500 million loan will encourage investor confidence in Sri Lanka and strengthen the currency.

“China, as a loyal friend and reflecting the depth of our friendship, has been generously extending its helping hand to Sri Lanka when difficult challenges confronted us. Two weeks ago, China’s gift of 600,000 Covid-19 vaccines were airfreighted to Sri Lanka adding to our vaccine stock.”

He welcomed further cooperation on trade, investment, tourism, education, sports and other areas. “We expect more Chinese tourists to visit Sri Lanka in the post Covid-19 period with the prospect of travel restrictions being relaxed in the near future”.

Dr. Kohona also said that they were in discussion with Chinese producers with a view to shooting a tourism-oriented movie in the near future.

The Mission was also holding talks to improve access to Sri Lankan exports to the lucrative market while encouraging increased FDI flows to Sri Lanka.

All these would assist our economy to recover in the shortest period, Dr. Kohona stated. This USD 500 million loan was a part of USD 1 billion, out of which USD 500 million was released last year.

Previously, the Mission had worked closely with Chinese counterparts to secure these funds, the statement said.

AddThis Website Tools
Tyronne Jayamanne

Recent Posts

LNP – SLC felicitates Ruchira Palliyaguruge for officiating in 100 ODIs

Sri Lanka Cricket felicitated Ruchira Palliyaguruge, who is officiating in his 100th ODI as an…

9 hours ago

LNP – Invitation only for Shah Rukh Khan event

City of Dreams Sri Lanka, South Asia’s first integrated resort, announced that its grand opening…

2 days ago

LNP – Bypass patient compelled to bring drugs worth over Rs. 100,000 from outside

Patients seeking life-saving procedures such as bypass surgeries at the Colombo National Hospital are compelled…

2 days ago

LNP – Trump eyes simple tariff rates over complex talks, says letters going out Friday

President Donald Trump said Washington will start sending letters to countries on Friday specifying what…

2 days ago

LNP – IMF says Sri Lanka’s GDP could fall by 1.5% from US tariffs

Sri Lanka’s GDP could decline by up to 1.5 percent if the United States reinstates…

2 days ago

LNP – Former Minister S.M. Chandrasena arrested

Former Minister S.M. Chandrasena was arrested by the Commission to Investigate Allegations of Bribery or…

2 days ago