Home World Sri Lanka Signs $308 Million-Loan Agreement With China

Sri Lanka Signs $308 Million-Loan Agreement With China


Sri Lanka Signs $308 Million-Loan Agreement With China

In February, Sri Lanka settled a $400 million currency swap facility with India, over financial strains

Colombo:

Sri Lanka on Tuesday signed a loan agreement with China worth 2 billion Renminbi (USD 308 million) to support its COVID-19 response, economic revival and financial stability, the Chinese embassy said.

“China Development Bank and Sri Lankan Government have entered into an agreement of RMB 2 Billion (approx Rs 61.5 Billion) Term Facility today (Aug 17), upon a request from Sri Lanka side to support its #COVID19 response, economic revival, financial stability and livelihood betterment,” the embassy tweeted.

The latest loan is part of a USD 1.2 billion budget support in credit agreed earlier. Sri Lanka has received USD 1 billion in credit support in two tranches of USD 500 million each in April 2021 and March 2020 respectively.

The coronavirus pandemic has severely jolted the Sri Lankan economy which is dependent on its tourism sector.

Earlier in February, Sri Lanka settled a USD 400 million currency swap facility with India, to tide over financial strains.

Speculation that Beijing is trying to lure Sri Lanka into a debt trap has been outright rejected by the President Gotabaya Rajapaksa-led government.

Struggling to pay back over USD 8 billion-dollar Chinese loans and investments, the previous Sri Lankan government had handed over the majority share of the Chinese-built strategic southern port of Hambantota to a Chinese state-owned company on a 99-year lease in 2017.



Source link

RELATED ARTICLES

Russia Opposition Claims Mass Fraud After Vladimir Putin’s Party Sweeps Vote

<!-- -->Russian President Vladimir Putin's party claimed two-thirds majority in the lower house. (File)Moscow: Russia's opposition accused the authorities of mass voter fraud...

5 Dead, 6 Injured In Russian Campus Shooting, Attacker Arrested

<!-- -->Four injured in attack at Russian university, spokeswoman said. (Representational)Moscow: A student opened fire on a university in Russia's city of Perm...

Amid Submarine Fallout, Australia Reminds France Of Historical Ties

<!-- -->Earlier, Australian PM Scott Morrison said, "must make decisions in Australia's security interests".Sydney: Australia has already proven its affection for France through...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Vice President Venakaiah Naidu Says Farmers’ Problems Should Not Be Linked To Politics

<!-- -->Vice President M Venkaiah Naidu said it is absolutely important to modernise agriculture. (File)Gurugram: Vice President M Venkaiah Naidu on Sunday said...

Amazon India Now Lets Customers Shop in Bengali, Marathi; Announces Hindi Voice Shopping Experience

Amazon on Monday announced Bengali and Marathi as two new Indian languages for shopping on its e-commerce site. With the new update, Amazon...

Russia Opposition Claims Mass Fraud After Vladimir Putin’s Party Sweeps Vote

<!-- -->Russian President Vladimir Putin's party claimed two-thirds majority in the lower house. (File)Moscow: Russia's opposition accused the authorities of mass voter fraud...

Malaika Arora enters the week with balancing Vrikshasana, here’s how to do it correctly | Health

Malaika Arora took to Instagram to share a picture of herself doing the Vrikshasana or the Tree Pose. She also shared steps to...

Recent Comments