China backed AIIB emerges as a key lender to Sri Lanka in 2019
ECONOMYNEXT – China-backed Asian Infrastructure Investment Bank has emerged the third largest multilateral lender to commit loans to Sri Lanka in 2019 with 280 million US dollars, though the China itself committed another billion US dollars, official data show.
Sri Lanka had got commitment of 3.37 billion US dollars of new commitments in 2019, with the Asian Development Bank committing 765 million US dollars, the World Bank 421 million US dollars.
Among bilateral lenders Japan came second behind China with 282 million US dollars, UK committed 143.9 million US dollars, The Netherlands 128.2 million US dollars and France 84.9 million US dollars.
Asian Infrastructure Investment Bank had committed 200 million US dollars for a Colombo Urban Regeneration Project at the London Interbank Offered Rate plus 1.4 percent with a 0.25 percent commitment fee and 0.25 percent front end fee.
It will have a 9 year grace period and 30 year pay back.
The AIIB had also committed 80 million US dollars to landslide mitigation project at a rate of 1.3 percent above LIBRO with a 6 year grace period and 30 year pay back.
The Exim Bank of China had committed 989.5 million US dollars for the Central Expressway Section 01 from Kadawatha to Merignac at a 2.5 percent fixed rate, 0.25 percent commitment fee and 2.5 million US dollar management fee.
Japan had committed 30.04 billion yen (270mn dollars), for light rail system at 0.1 percent and 0.01 percent with a front end fee of 0.2 percent. It will have a grace period of 12 years and pay back of 40 years including grace period.
The ADB had committed 300 million US dollars to elevated port access road at LIBOR plus 1.4 percent and 0.25 percent front end and 0.25 percent commitment fee.
Another 150 million US dollars had been committed for roads at LIBOR plus 0.7 percent and 0.015 percent commitment fee.
A 160 million dollar loans for railways carries a rate of 0.7 percent above LIBOR and 0.15 percent commitment fee. The payback is 8 years with 29 year payback. (SB-Colombo/June10/2020)