Republic of Korea agrees to provide US$ 500 million to Sri Lanka for project implementation
The Republic of Korea has reportedly agreed to supply Korean Won not exceeding US$ 500 million to the government of Sri Lanka for implementing projects recognized within the period of 2020-2022.
Accordingly, Sri Lanka’s Cabinet of Ministers has approved the proposal presented by the country’s Prime Minister as the Minister of Finance for entering into a new activity framework agreement between the two parties.
The government has reportedly stated that the Activity Framework Agreement between the Republic of Korea and Sri Lanka has enabled financing for implementing recognized projects from the Economic Development Cooperation Fund of Korean Import-Export Bank for implementing identified projects.
Both Korea and Sri Lanka have entered into an accord for an activity framework in 2017 for the implementation of projects mutually agreed by both parties with the objective of further strengthening economic cooperation between the two countries. The last agreement had expired in 2019.
The government of Sri Lanka has shown commitment to continuing with the country’s development programme that was temporarily halted due to the impact of the global Covid 19 pandemic last year. However, given the resilience shown by Sri Lanka’s economy in the face of external/internal pressures through the years has given confidence to bilateral/multilateral funders to continue granting financial assistance to Sri Lanka. The island is fast becoming a business hub in the South Asian region given its geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country. Therefore, Sri Lanka’s development programme is continuously expanding creating many business/investment opportunities in the country.
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