Another US$140 Mn loan from China

(FASTNEWS | COLOMBO) – The China Development Bank (CDB) will deliver another concessionary loan of US$140 million — US$70 million before the end of this month and the remainder by the end of the year — to tide over the present financial problems, a spokesman from the Chinese embassy said yesterday.

Acting Chinese Ambassador Hu Wei called on Prime Minister Mahinda Rajapaksa yesterday to discuss bilateral cooperation as a follow up to the telephone conversation between Sri Lankan President Gotabaya Rajapaksa and Chinese President Xi Jinping on May 13.

The spokesman told to a prominent online news portal in the isle that the discussion centred on fighting COVID-19 jointly and enhancing financial, trade and investment cooperation.

The CDB announced US$500 million loan two months ago. He said the latest loan would be at a concessionary rate for the government to carry out its debt restructuring plan.

Besides, he said the proposed investments in Hambantota and the Colombo International Financial City (Port City) were also discussed.

“There will be a vehicle tyre manufacturing plant in Hambantota with a US$500 million investment from China,” he said.

The Chinese Embassy delegation also briefed the Prime Minister about the latest outbreak of COVID-19 cases in Beijing. The two sides discussed the need to be cautious because of the danger of the virus spread.