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US$1.5 billion in development funds coming after deal with China’s EXIM Bank
View(s):By Damith Wickremasekara
Sri Lanka is set to unlock loans amounting to more than US$1.5 billion from the China Export and Import Bank for projects held back due to the debt crisis.
The facilities became available after Sri Lanka this week entered into an agreement with China’s EXIM Bank on debt restructuring and simultaneously an MoU with the Paris Club-led official creditor committee co-chaired by France, India and Japan.
A senior Treasury official said that among the loans available would be the funds for the construction of the Kadawatha-Mirigama expressway stretch, which has been delayed for more than three years.
A number of other road projects that have been held back are due to begin with the release of the funds.
Highways Minister Bandula Gunawardena told the Sunday Times that, as a result of unlocking US$1.5 billion, a majority of the road projects could be carried out next year.
He said they would begin talks with China’s EXIM Bank next month, hoping that the first installment would be made available within two months.
The Highways Ministry has also sought the release of Rs. 20 billion for the reconstruction of bridges and roads washed off during the recent floods. Another Rs. 40 billion has been requested for the payment of arrears for projects completed.
The Treasury official said they would have to negotiate new conditions for the projects.
He said that beside the loans from EXIM Bank, other facilities from the Asian Development Bank, the World Bank, Saudi Arabia, and some European countries are due for rural projects, including bridges.
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