Sri Lanka’s People’s Bank signs US$ 200 million funding facility with China Development Bank
The state owned People’s Bank of Sri Lanka has reportedly signed a landmark US$ 200 million, eight-year, bilateral funding facility with China Development Bank.
According to reports, it is one of the largest and the longest tenor funding facilities secured by any commercial bank in Sri Lanka thus far.
The signing ceremony was held at China Development Bank’s Guangxi Branch in Nanning in the People’s Republic of China on 27 March.
Chief Executive Officer/General Manager of People’s Bank, N. Vasantha Kumar and Guangxi Branch General Manager Mei Shiwen had signed the facility agreement representing People’s Bank and China Development Bank respectively.
Thereafter several rounds of discussions were held between senior officials of People’s Bank and China Development Bank with regard to future cooperation between the two institutions, reports state.
China Development Bank had selected People’s Bank to sign an historic Memorandum of Understanding (MoU) in May 2018 covering areas such as financing, customer referrals, introducing investment opportunities in Sri Lanka and training and experience exchange, etc.
OSL take:
The funding facility signed between Sri Lanka’s People’s Bank and the China Development Bank is indicative of the strength of Sri Lankan banks as well as the confidence foreign banks has on local banks. Sri Lanka and China enjoy strong bilateral and trade ties. Therefore, foreign businesses/investors cpuld explore business/investment opportunities in Sri Lanka with confidence knowing they will have a strong local banking sector at their disposal.
| Article Code : | VBS/AT/11042019/Z_2 |