Sri Lanka commences discussions for US$ 1 billion Chinese loan for power and highways sectors
The Finance Ministry of Sri Lanka has announced that the country was seeking a loan of nearly US$ 1 billion from China for energy and highways sectors.
The Ministry has reportedly stated that talks are underway with China’s Asian Infrastructure Investment Bank (AIIB) to raise the new loan in addition to the US$ 1.2 billion obtained from international agencies this year.
“We have been discussing with the AIIB to obtain nearly an additional US$ 1,000 million for further development of the Power and Highway sectors,” the Ministry has quoted Sri Lanka’s Finance Minister Mangala Samaraweera as saying.
A foreign news agency has highlighted that the previous Sri Lankan government had borrowed heavily to rollout ports, highways and railroads, but several ambitious infrastructure projects ended up as white elephants and left the country facing a mountain of debt – mainly to China.
Samaraweera has however stated that the country was able to maintain economic stability despite the 21 April attacks that killed at least 258 people at three churches and three luxury hotels.
OSL take:
The discussion between the government of Sri Lanka and China’s AIIB to secure funds for the power and highways sectors in the country indicates the opening of business/investment opportunities in Sri Lanka’s power and highways sectors. Foreign businesses could therefore explore business opportunities in Sri Lanka’s power and highways sectors.
| Article Code : | VBS/AT/24062019/Z_6 |