ECONOMYNEXT – The Asian Development bank (ADB) has approved a US$4 million loan to Walkers Colombo Shipyard (Pvt) Ltd, a subsidiary of Sri Lanka’s MTD Walkers PLC group.
The loan, with a tenor of 8 years, including a 1-year grace period, is for Walkers Colombo Shipyard’s shipyard project.
It will be the first ADB non-sovereign infrastructure loan in Sri Lanka since 2000.
MTD Walkers’ ship repair business will be done in the three locations through its wholly owned subsidiary Walkers Shipyards Limited (WSL), which is being incorporated to manage all of MTD Walkers’ maritime-related businesses.
Long-term dollar financing of the kind proposed to be provided by ADB is not readily available in Sri Lanka, the lender said.
The funds will help Walkers Shipyards commission small vessel repair capacity commissioned, and also generate local employment and growth of the local economy, the ADB said.
(COLOMBO, October 12, 2017)