Sri Lanka has accepted China Development Bank’s $1 billion syndicated loan with eight-year tenure at 5.3 percent, two top finance ministry officials said on Friday.
The Chinese bank was chosen among four bidding for the loan, which the government plans to use toward repaying other loans, one top finance ministry told Reuters.
“All three others had three-year tenure and only China Development Bank had a bid for an eight-year tenure. The effective rate of return is around 5.3 percent,” the official said.
“It was a good offer. The loan has a three-year grace period. Then in the next five years, the government will be repaying $100 million biannually.”
Another top finance ministry official confirmed the deal.
Former Chairman of SriLankan Airlines, Nishantha Wickramasinghe, arrested on allegation of corruption by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has been remanded until July 1 by the Colombo Magistrate court.
Deputy Minister of Finance and Economic Stabilization and NPP National List MP Harshana Suriyapperuma who is tipped to be named the next Finance Ministry Secretary resigned from Parliament today.
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