Sri Lanka receives US$ 500 million syndicated loan from China Development Bank
The Central Bank of Sri Lanka (CBSL) has stated that the government of Sri Lanka has received a US$ 500 million syndicated loan from the China Development Bank helping to boost reserves and counter US$ 261 million outflow from the Government securities market in March.
According to reports, gross inflows on account of long-term loans to the Government amounted to US$ 588 million in March, which included the receipt of the syndicated loan facility from the China Development Bank amounting to US$ 500 million.
A net outflow of the foreign investment amounting to US$ 261 million was recorded from the rupee denominated Government securities market in March, resulting in a cumulative net outflow of US$ 361 million during the first three months of 2020, local media reports stated.
Outflows of foreign investments from bond markets of most emerging and frontier economies were observed in the aftermath of the COVID-19 pandemic, reports noted.
However, Sri Lanka’s exposure to such outflows remains negligible, with only an insignificant share of outstanding Government securities being held by non-residents, local media reports added.
OSL take:
The government of Sri Lanka has not left any stones unturned in the path to get the country’s economy return to normalcy following the post Covid 19 pandemic situation. Given Sri Lanka’s geographical positioning in the Indian Ocean, the ease of doing business environment and the many trade agreements as well as trade concessions enjoyed by the country will undoubtedly expedite the country’s economic revival. Foreign businesses/investors could therefore explore business/investment opportunities in Sri Lanka with confidence.
| Article Code : | VBS/AT/20200610/Z_2 |