$ 200 m loan from Pakistan

Thursday, 1 June 2017 01:00 - - {{hitsCtrl.values.hits}}

Cabinet has granted approval for Sri Lanka to accept a $ 200million credit facility from Pakistan to be utilised in several sectors to foster growth.

“The Government of Pakistan has agreed to provide a loan facility of $ 200 million and it will be used for financing projects such as housing construction, development of livestock, importing equipment required for agriculture and dairy production, and development of the Industrial Technology Institute,” the Cabinet said in a press release on Wednesday.

The proposal, which had been made by Foreign Minister Ravi Karunanayake in his capacity as former Minister of Finance, to enter into the loan agreement with Pakistan in this regard, was approved by the Cabinet of Ministers this week.

Pakistan and Sri Lanka are currently looking at ways to deepen their trade relations by expanding the Free Trade Agreement (FTA) to include services. This is part of the Government’s plans to set up a tariff incentive market of three billion people to attract foreign investment. Pakistan also responded during the floods by sending a ship of relief goods that arrived in Colombo on Tuesday. (UJ)