China extends US$ 500 million assistance package

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China has extended a US$ 500 million financial arrangement on concessional terms on both interest and tenure.

The agreement was signed between the Finance Ministry and the China Development Bank (CDB) in Temple Trees yesterday. Prime Minister Mahinda Rajapaksa, Chargé d’affaires of the Chinese Embassy Hu Wei and Vice President of CDB Ma Xin were present.

The facility was requested by the Sri Lankan government and supported by China, under current financial situation in Sri Lanka and the background of fighting COVID-19 pandemic with all-out efforts.

It is with a maturity period of ten years, which is the longest tenure of financing facility for Sri Lanka. The interest cost is highly competitive and favorable and linked to 6 Month USD LIBOR with a grace period of three years.

The inflow of the funding is set to be implemented by March end and expected to increase the official foreign reserves of Sri Lanka to better manage the finance and fight coronavirus. The Chinese government, people and relevant financial institutes are committed to continuously provide necessary assistance to the Sri Lankan government and people within our capacities for the latter’s economic and social development.

(Source: Daily News)