The Sri Lankan Government has requested China for further financial assistance, the Chinese Embassy in Sri Lanka announced today.
The Embassy said the Sri Lankan Government has requested a US$ 1 billion loan and a US$ 1.5 billion credit line from China.
The Chinese Ambassador to Sri Lanka Qi Zhenhong said the financial assistance was in addition to the US$ 1.5 million currency swap in 2021.
He said the request for further financial assistance by the Sri Lankan Government is under consideration.
Qi Zhenhong said that China has provided Sri Lanka US $ 2.8 billion so far since 2020 including the US$ 1.5 billion currency swap in 2021.
He confirmed that Sri Lanka has requested another US$ 2.5 billion including the US$ 1.5 billion buyer’s credit which is under negotiations.
Senior economist Shihar Aneez reported that Sri Lanka was scheduled to pay US$ 53.596 million to the China Development Bank, US$ 17 million to the National Water Board, and US$ 386.19 million Yuan to the China Exim Bank.
He said the payments were due between 18-21 March 2022 and these payments are yet to be settled by the Sri Lankan Government.
Aneez said, according to sources, discussions are underway on how to resolve these issues.
Commenting on the overdue payments as reported, the Chinese Ambassador to Sri Lanka Qi Zhenhong said as per the lenders, the loans had been settled by the Government of Sri Lanka last week.
Providing an update on development projects in Sri Lanka, Qi Zhenhong said that Chinese companies have invested nearly US$ 1.05 billion in the Colombo Port City.
He further revealed that up to 43 companies have signed agreements to start a business in the industrial zone in Hambantota.
The Chinese Ambassador to Sri Lanka has also assured that China will not take advantage of Sri Lanka’s situation as Sri Lanka has helped China when it was at its lowest point 70-years ago. (NewsWire)