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Sri Lanka gets US$500mn loan to help fight Coronavirus China says

ECONOMYNEXT – China and Sri Lanka had inked a 500 million dollar loan agreement which could be used to fight Coronavirus Beijing’s embassy in Colombo said.

“The facility was urgently requested by the Sri Lankan government and supported by the Chinese side, under current financial situation in Sri Lanka and the background of fighting COVID-19 pandemic..” the embassy said.

“The inflow of the funding is set to be implemented by the end of March, and expected to increase the official foreign reserves of Sri Lanka to better manage the finance and fight Coronavirus..”

The Coronavirus originated in Wuhan, China and has spread around the world.

The 10-year loan is priced at a floating rate linked to the 6-month US dollar London Interbank Offered Rate.

“The interest cost is highly competitive and favorable and linked to 6 Month USD LIBOR with a grace period of three years,” the statement said.

The deal was signed at Temple Trees in the presence of Prime Minister Mahinda Rajapaksa, Chargé d’affaires of the Chinese Embassy Hu Wei, and Vice President of CDB Ma Xin. (Colombo/Mar18/2020)

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