COLOMBO, Sri Lanka: Sri Lanka is negotiating a $1 billion loan
from China to construct a highway linking the capital Colombo to
the hilly resort city of Kandy, even as the heavily-indebted South
Asian island nation makes arrangements to pay down $5.9 billion in
foreign loans this year.
Finance Ministry spokesman M.R. Hasan said Saturday that he’s
waiting to hear whether terms of the loan for the highway project
have been approved.
A large chunk of Sri Lanka’s foreign debt is from China, which
sees Sri Lanka as a key link in its transcontinental Belt and Road
President Maithripala Sirisena’s government had criticized the
previous administration of strongman Mahinda Rajapaksa for leading
the country into a Chinese debt trap. However, the government has
turned to China to help relieve economic pressures.
India delays project to modernize key Sri Lankan airportIMF
announces $1.5bn loan for Sri Lanka
Source: FS – All-News-Economy
Sri Lanka seeks billion loan from China amid debt woes