US biggest donor, China biggest lender to Sri Lanka in 2016

ECONOMYNEXT – The United States had given 23.83 million or 44 percent of all grants to Sri Lanka in 2016 which do not have to be paid back, while China has given the most loans of 440.76 million dollars, official data show.

Sri Lanka had borrowed 1,586.2 million dollars from foreign governments are multilateral agencies for projects and policy loans, actual disbursement data from the finance ministry shows.

The World Bank gave 354.86 million dollars in loans and 9.28 million dollars in grants. The Asian Development Bank came close behind at 336.63 million dollars.

Japans gave 159.7 million dollars in loans and 7.01 million dollars in grants.

Germany gave 5.43 million dollars in loans and 3.98 million dollars in grants. UN agencies gave 22.63 million dollars in loans and 9.7 million in grants.

China has replaced Japan and ADB as top lender to Sri Lanka with the country getting heavily involved over the last decade.

A China funded coal plant has radically brought down power generation costs, but there has also been so-called ‘vanity projects’ such as the Mattala Rajapaksa International Airport, and a port which has added to costs. Some of the loans taken by state enterprises are not included in the central governmet debt. (Colombo/June15/2017 – Corrected – opening paragraph should read as 2016 not 2017)

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