China Exim Bank, HNB to fund Sri Lanka expressway extension

ECONOMYNEXT – Sri Lanka will borrow 360 million US dollars from the Exim Bank of China and 63.58 million dollars from Hatton National Bank to fund the extension of the Southern Expressway, a government spokesman said..

Health Minister Rajitha Senaratne said the cabinet of minister had approved a proposal by Finance Minister Ravi Karunanayake to get 85 percent of the project funds from Exim Bank of China and the balance from HNB.

The expressway extension consists of four sections from Matara to Hambantota with a total length of 96 kilometres.

The construction contract between the Road Development Authority and China State Construction Engineering Corporation Ltd. was signed in September 2014.

The funds are for the fourth phase of the Southern expressway project, a section of 26 kilometres from Beliatta to Wetiya, Senaratne told a news conference. 

The Beliatta – Wetiya section total cost of construction is 423.9 million US dollars.

Exim Bank of China will give the loan under its preferential buyer credit facility at an interest of two percent a year with a 20-year repayment period including a five year grace period.
Exim Bank fees also include a one-time upfront fee of 0.25 percent of the total loan amount and a commitment fee of 0.25 percent which has to be paid each year on the undisbursed amount of the loan.
(Colombo/January 07, 2016)

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