The Government is in the midst of negotiating a new loan from China, which could be as much as $2 billion and is likely to be finalised over the next few weeks, a top official said yesterday. 

Senior Deputy Governor Dr. Nandalal Weerasinghe told reporters that the Government is in the middle of negotiating a loan from the Chinese Development Bank that, at least in part, could be used for refinancing requirements this year. 

Sri Lanka has to repay a total of $4.8 billion this year, with the next large payment of $1 billion due in September.  

“The Government has a clear borrowing plan for the year, and under that they are already working on a loan from China Development Bank, and we understand that has made good progress and that may materialise in a couple of weeks. After the elections and the Budget is presented, there will be a borrowing plan for next year and even for the second half of this year. The indication is that the Chinese loan could be between $1-2 billion, but the final number has not been finalised. This is within the borrowing limit set out in the Vote on Account,” Dr. Weerasinghe said.  

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