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Sri Lanka gets USD 500 million loan from China as financial aid

Sri Lankan Ministry of Finance said that the USD 500 million loan would be released early next week to bolster the official reserves of the country.

Published: 18th March 2020 10:30 PM  |   Last Updated: 18th March 2020 10:30 PM   |  A+A-

Sri Lanka new PM Mahinda Rajapakse

Sri Lanka PM Mahinda Rajapakse (File photo | AP)

By PTI

COLOMBO: China has provided USD 500 million loan to Sri Lanka from its development bank to help the country's economy.

Sri Lankan Ministry of Finance said that the USD 500 million loan would be released early next week to bolster the official reserves of the country. "The facility has been made available on a request made by the government of Sri Lanka to the Chinese government and the China Development Bank to support the development efforts," a statement said.

China's Central Bank this week reduced policy interest rates in view of the anticipated coronavirus impact. The Central Bank has felt the urgent need to support economic activity with the rapid global spread of the COVID-19 pandemic and its possible further spread in Sri Lanka, a statement said.

China is already one of the biggest investors in various infrastructure projects in Sri Lanka. But there has been criticism, both locally and internationally, and growing concerns that China has lured Sri Lanka into a debt trap.



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  • Mr maxwell

    Do you need commercial loans
    1 year ago reply
  • Dunggy

    what is india doing. They had a meeting during last month to support SAARC countries. Looks like india is only trying to show the have power and control of the region. But every one is running to China.
    1 year ago reply
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