Sri Lanka to receive US$ 1 billion concessionary long term loan from China Development Bank
The Sri Lankan media has reported that the US$ 1 billion concessionary and long-term loan from the China Development Bank (CDB) to Sri Lanka is scheduled to be remitted by today.
The Daily FT has reported that the eight-year facility has been pending for weeks. However, the media report has confirmed that the funds will arrive today, offering a big boost to the country’s reserves and defences against external-factor-led pressure on the rupee.
The Central Bank is likely to make a formal statement on the receipt of CDB funds today, the report further states.
Recently Governor of the Central Bank of Sri Lanka, Dr. Indrajit Coomaraswamy has said that apart from the US$ 1 billion CDB facility, the Government may consider US$ 250 million each Panda and Samurai bonds as well as a US$ 1 billion International Sovereign Bond issue to shore up the country’s reserves to ward off the vagaries of pressure on the rupee and debt servicing in 2019.
OSL take:
Once the long term concessionary loan from China comes into Sri Lanka, it would further strengthen the country’s economic standing. Sri Lanka’s economy has been recording a slow yet steady growth. Some of the key sectors in the country have recorded impressive growth including the exports sector. Given the country’s economic strength, Sri Lanka is fast becoming an investment base in the Asian region.
| Article Code : | VBS/AT/20181017/Z_6 |