ADB, China leads Sri Lanka foreign financing in early 2018
ECONOMYNEXT – The Asian Development Bank and China were the biggest lenders to Sri Lanka’s in the first four months of 2018 followed by Japan, while China also made most of the new commitments, official data shows.
Out of 512.12 million dollars of bilateral and multilateral financing used in public investment in the first four months of the year, ADB disbursed 228.85 million dollars in loans and 0.74 million in grants.
China disbursed 90.83 million dollars, Japan 54.9 million dollars and the World Bank 48.83 million dollars.
China also pledged most of the new project loans, comitting 79.8 million dollars out of a total of 266.2 million US dollars where 10 new agreements were signed.
After the reporting period, China Development Bank also won a bid to syndicate a billion dollar loan to Sri Lasnka.
The Asian Development Bank committed 75 millon US dollars followed by India with 45.3 million dollars.
A total of 219.2 million dollars were pledged as and 46.9 million as grants and technical assistance in the first four month of 2018.
Others who committed new loans were were Australia (25.0 million dollars), USA (17.9 million), Austria (13.0 million), International Fund for Agricultural Development (6.2 million), United Nations Population Fund (4.0 million) and United Nations High Commissioner for Refugees (0.01 million).
Of the commitments made the highest amount was committed for the railway sector with 79.8 million.
The small and medium enterprises sector received the second highest commitment of 75.0 million.
Separately Sri Lanka also raised 2.5 billion US dollars thorugh international sovereign bonds.
Sri Lanka is now raising foreign loans mostly to repay maturing older loans, as part of a debt re-structuring effort. In the first four months, Sri Lanka had settled 715.6 million US dollars out of which 325.4 million dollars was interest. (COLOMBO, July 02, 2018)