China provides US$ 500 Million loan | Daily News

China provides US$ 500 Million loan

Pact inked with China Development Bank:
Welcome infusion of foreign exchange:

Sri Lanka’s Ambassador to China Dr. Palitha Kohona, on behalf of the Government of Sri Lanka, signed a US$ 500 million Loan Agreement with the China Development Bank yesterday.

“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,” a statement issued by the Sri Lankan embassy in China said.

After the signing 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 US$ 500 million loan will encourage investor confidence in Sri Lanka and strengthen the Sri Lanka Rupee.

“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 confront us. Two weeks ago, China’s gift of 600,000 Covid-19 vaccine doses were air-freighted to Sri Lanka adding to our vaccine stock,” the Ambassador noted.

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 said that they were in discussions 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 Chinese market while encouraging increased Foreign Direct Investments (FDI) flows to Sri Lanka. All these would assist our economy to recover in the shortest period, Dr. Kohona stated.

This US$ 500 million loan was a part of US$ 1 billion loan, out of which US$ 500 million was released last year.

The Sri Lankan Mission in Beijing had worked closely with Chinese counterparts to secure these funds.