Sri Lanka in talks to obtain USD 700 mn loan from China : Cabraal

COLOMBO (News1st): Discussions are underway with China to obtain a loan facility of USD 700 million, state minister of money Ajith Nivard Cabraal has said. The state minister had told the Nikkei Asia website that discussions have been going on for a long time with the China Development Bank about the matter. Yang Jiechi the Director of China's Foreign Affairs Commission, following a recent tour to Sri Lanka, announced China would offer USD 90 million as an aid. China stated that the money will be used to improve the health and education sectors in rural areas. The aid was extended while Sri Lanka was in discussion with China to obtain a loan of USD 1.2 billion. According to the Nikkei Asia Website, China has already provided USD 500 million out of this amount to Sri Lanka. Cabraal had said that it is dangerous to reach out to the International Monetary Fund for a loan facility. Former governor Keerthi Tennakoon pointed out that China has only granted USD 90 million despite asking for a USD 700 million-loan from China. "This 90 million will not solve any of the problems of our country," Tennakoon noted.