Sri Lanka seeks $1Bn loan and $1.5 Bn credit line from China

Sri Lankan government had sought a US $ 1 billion loan and US $ 1.5 billion buyer’s credit facility from China, and the request was under consideration, Chinese Ambassador to Sri Lanka, Qi Zhenhong said.  

 

He made these remarks while addressing a media briefing, which packed with journalists of both local and foreign new agencies in Colombo today.

 

The Ambassador added that Sri Lankan government requested of USD 2.5 billion financial facility from China.

 

“New request of USD 2 billion was raised by Sri Lankan government to Chinese Government recently Of that amount USD 1 billion financing facility and USD 1.5 billion buyer’s credit. China understands the urgent need of Sri Lanka and its people at this juncture,” the Ambassador added.

 

He further said that relevant authorities of China are studying ye request promptly considering it is an urgent need.  

 

The Ambassador added that US$ 1 billion term financing facility was provided by China Development Bank (CDB) to Sri Lankan Finance Ministry as a mark to support the Sri Lankan effort against Covid 19 pandemic and reviving the economy. Besides a sum of US$ 300 million term financing facility was provided by CDB on 17 August 221 to Sri Lanka. Meanwhile A bilateral currency SWAP agreement amounting to US$ 1.5 billion was signed between the People’s Bank of China (PBoC) and the Central Bank of Sri Lanka (CBSL) on March 2021aiming to stabilize the forex level of Sri Lanka.