Posted on 04.12.2021 by Chandana Sirimalwatte in Local News with 0 Comments
USD 500 million loan agreement with the China Development Bank, is reportedly signed by Lankan authorities today.
The country is further entangled by the debt trap when economic crisis has worsened owing to Corona pandemic.
Ambassador Dr. Palitha Kohona, after signing the agreement on behalf of the government of Sri Lanka, has stated to media that the loan will infuse vitally required foreign exchange into the Sri Lanka economy. He has also forecasted that funds will help with Government efforts to facilitate rapid economic recovery following the setbacks caused by the Covid-19 pandemic.
The timely assistance from China in providing these funds will help fuel Sri Lanka’s recovery efforts and stimulate growth Dr. Kohona stated. USD 500 million loan will encourage investor confidence in Sri Lanka and strengthen the currency, he added.