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Saturday May 15th, 2021
Economy

Sri Lanka expects China US$700mn loan in December 2020

ECONOMYNEXT – Sri Lanka is expecting a 700 million dollar equivalent loan from China Development Bank in December 2020, the Finance Ministry said.

Authorities earlier said the loan would arrive in October.

About 500 million dollars are expected to come in dollars and the balance would be Renmnbi denominated.

The Asian Development Bank approved a 165 million dollar credit in November for on-lending to small and medium enterprises.

Sri Lanka repaid a maturing billion dollar sovereign bond in October 2020, and has also repaid over 4 billion US dollars in other repayments.

In 2021 Sri Lanka has another 4 billion dollars to settle.

Sri Lanka’s central bank has been printing money which can drive credit making it less easy to collect reserves to repay debt.

Sri Lanka’s sovereign rating was downgraded to ‘CCC’ or barely above default by Fitch on November 28, raising questions about the budget.

Sri Lanka has disputed the rating. (Colombo/Nov28/2020)

Comments (8)

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  1. Sanjaya says:

    It would be interesting to know what is the interest rate for the loan.

    1. Steve says:

      China has got Sri Lanka by the throat

    2. Sulaimann says:

      Sorry to say that Sri Lanka is trapped in Chinese loan trap ..we hope and pray they do not demand another plot of land from Sri Lanka ..what will be leftover for our next generation of children??

    3. M says:

      Very valuable question.

  2. dickie bird says:

    Rating agencies playing truant.
    They pick on developing countries to bully for their donor to frolic in Sri Lanka and with her products.
    At least a financially strong country is behind SL from the economic vultures waiting to prey on SL.

  3. Siriwardane says:

    It’s gonna be a Chinese colony very soon.

  4. Fatima Razak says:

    Islamic finance principles which prohibits Interest being charged to ensure the poor are not forever indebted should be adopted by China for the benefit of the world poorest citizens. Nirvana for the Chinese in the life here and hereafter.

  5. chort says:

    Bitcoin is the answer. diversify

Comments

Comments (8)

Your email address will not be published. Required fields are marked *

Your email address will not be published. Required fields are marked *

  1. Sanjaya says:

    It would be interesting to know what is the interest rate for the loan.

    1. Steve says:

      China has got Sri Lanka by the throat

    2. Sulaimann says:

      Sorry to say that Sri Lanka is trapped in Chinese loan trap ..we hope and pray they do not demand another plot of land from Sri Lanka ..what will be leftover for our next generation of children??

    3. M says:

      Very valuable question.

  2. dickie bird says:

    Rating agencies playing truant.
    They pick on developing countries to bully for their donor to frolic in Sri Lanka and with her products.
    At least a financially strong country is behind SL from the economic vultures waiting to prey on SL.

  3. Siriwardane says:

    It’s gonna be a Chinese colony very soon.

  4. Fatima Razak says:

    Islamic finance principles which prohibits Interest being charged to ensure the poor are not forever indebted should be adopted by China for the benefit of the world poorest citizens. Nirvana for the Chinese in the life here and hereafter.

  5. chort says:

    Bitcoin is the answer. diversify