$ 1.5 b financial assistance from China for infrastructure projects

THE Government yesterday announced that China has agreed to provide financial assistance of US$1.5 billion for the country’s major infrastructure projects in the next three years.

“China Development Bank Corporation has agreed to provide financial assistance in a sum of US$ 1.5 billion within 3 years for the construction of roads, bridges, water supply schemes and also for irrigation and power,” the Government said. The Cabinet has approved a proposal submitted by President Mahinda Rajapaksa allowing the Ministry of Finance and Planning to sign a Memorandum of Understanding for the purpose with the China Development Bank Corporation.

However, the government did not announce the loan conditions.

China has been the largest donor to Sri Lanka even surpassing the Asian Development Bank (ADB) and World Bank in providing aid for the major infrastructure projects in the country including the Norochcholai coal power plant, Southern port, and a second airport in Hambantota.