Sri Lanka seeks $1 billion loan from China amid debt woes

Author: 
AP
ID: 
1549092208750805500
Sat, 2019-02-02 (All day)

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
infrastructure initiative.
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.

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Source: FS – All-News-Economy
Sri Lanka seeks billion loan from China amid debt woes