Korea provides 190 garbage compactors for Sri Lanka

Loan agreement signing ceremony

The Government of Sri Lanka and the Export-Import Bank of Korea (Korea Eximbank) signed two loan agreements to supply 190 garbage compactors for Sri Lankan local governments to manage solid wastes in more efficient way on 28 June. Dr. R.H.S. Samaratunga, Secretary to the Treasury, Ministry of Finance and Mass Media and Sungsoo Jung, Chief Representative of Korea Eximbank Colombo office signed the loan agreements at the Ministry of Finance and Mass Media.

Korea Eximbank will finance this project with $ 14 million of 0% interest rate and 30 year repayment period including 10 year grace period. The project executing agency will be the Ministry of Provincial Councils, Local Government and Sports whereas the National Solid Waste Management Centre under the purview of the same Ministry will function as the project management unit. 

There is a serious shortage of waste collection equipment in Sri Lanka where only 11.6% of solid waste is collected by garbage compactors. In this context, by supplying 190 garbage compactors this project will not only reduce garbage collection time but also increase solid waste collection quantity to improve the solid waste management in Sri Lanka.

Korea Eximbank is also financing $ 34 million to construct four sanitary landfills in Jaffna, Anuradhapura, Polonnaruwa and Hikkaduwa to reduce solid wastes disposed in unsanitary open dumping sites. These four sanitary landfills will lessen further environmental pollution and damages and will enhance the health and sanitary lifestyle of people as well. 

The Export-Import Bank of Korea (Korea Eximbank) provides Official Development Assistance (ODA) loans through EDCF (Economic Development Cooperation Fund) for international development and cooperation. The bank provided its first ODA loan for the rehabilitation of the Colombo-Galle road (A2) in 1990. As of now, Korea Eximbank entrusted by the Korean government with the EDCF has approved $ 785.07 million for 29 development projects in Sri Lanka.

Korea Eximbank also provides financing for international trade and overseas investment, to promote bilateral economic cooperation. Since 1978, Korea Eximbank has provided $ 386 million both for trade between Sri Lanka and Korea and for Korean companies’ foreign direct investments in Sri Lanka.