US$1bn loan from Bank of Tokyo â€“ Mitsubishi for Sri Lanka roads
ECONOMYNEXT – The Bank of Tokyo – Mitsubishi UFJ Ltd. (BTMU) has agreed to give a concessional yen loan equivalent to one billion US dollars to fund part of an expressway and Colombo city elevated road at an annualised cost of around 2.02% – 2.22% a year.
The loan will cover the cost of the 3rd phase of the Central Expressway section between Pothuhera and Galagedera and the elevated road from Kelani Bridge to Rajagiriya in the capital Colombo.
The Cabinet of ministers approved a proposal by Prime Minister Ranil Wickremesinghe as minister of national policies and economic affairs to go ahead with talks with BTMU.
The loan will be at an annual interest of 06 month LIBOR (London interbank offered rate) plus 0.95% with repayment over 15 years and a six-year grace period.
The ministry of national policies and economic affairs said the annualised financing cost of the loan would in the range of 2.02% – 2.22% a year.
The two road projects have been identified as priority development projects of the government with the Cabinet Committee on Economic Management recommending loan assistance from BTMU.
(COLOMBO, July 22, 2016)