President Anura Kumara Dissanayake says China’s Export–Import Bank (EXIM) has agreed to provide a new concessionary loan in Chinese Yuan for the resumption of the Mirigama-Kadawatha section of the Central Expressway.

Delivering a special statement in Parliament today, President Dissanayake said that the proposal on the new Chinese loan will be approved at the Cabinet meeting scheduled for next Monday. 

“Work on the Mirigama-Kadawatha section of the Central Expressway was halted due to the failure to continue with the previous loan repayment due to bankruptcy. The construction work is contracted to a Chinese firm. Our agreement is with the Chinese firm. Due to the suspension of the construction work, all their machinery and equipment have become dilapidated and unusable,” he said. 

The President said, however, the Chinese company had proposed recommencing the construction work if the government pays compensation for their ruined machinery and equipment. 

“We can’t grant the compensation overnight. Several discussions must be held. Both sides have submitted proposals on the compensation value. We must conduct an estimation for the compensation,” he revealed. 

President Dissanayake pointed out that the loan provided by China’s EXIM Bank previously for the project was insufficient at present, under the current circumstances, adding that a higher loan was required. 

“Due to this requirement, we need to conduct more rounds of discussions. We are happy to announce that China’s EXIM Bank has agreed to provide a loan in Yuan with many concessions. Once we get the loan, we can settle the contractor’s compensation and recommence the project,” he said. 

The President also revealed that plans are underway for the construction of the Galagedera – Kandy stretch of the Central Expressway.

He said discussions are underway to secure foreign investments for the development project.

“If we are unable to get foreign investment, then the government will look at constructing the road using local investments. We intend to commence construction work by next year,” he added.  

President Anura Kumara Dissanayake went on to note that several other development projects that were halted previously due to Sri Lanka’s bankruptcy cannot be completed under the previously offered loans. 

“These projects need loans offering more money. They cannot be restarted immediately. These can be worked out only through fresh discussions, and it will take at least one to two years,” he said. 

The President further assured that all development projects that were halted will be recommenced by this year, such as the Katunayake Airport and Expressway projects. (Newswire)

The post China’s EXIM Bank agrees on new loan for Mirigama-Kadawatha expressway – President appeared first on Newswire.

Sri Lanka and India signed a USD 930.8 million Debt Restructuring Deal recently on Sri Lanka’s present External Debt Restructuring Process. 

The signing of Bilateral Amendatory Agreements between the Government of Sri Lanka and the Export-Import Bank (EXIM) of India took place on March 25, 2025 and April 03, 2025, respectively. 

The deal concerns 07 Line of Credit and 04 Buyer’s Credit Facility agreements with the Government of India.

Secretary of the Ministry of Finance, Planning, and Economic Development, Mr. K.M. Mahinda Siriwardana, signed the agreements on behalf of the Sri Lankan Government.

General Manager of the EXIM Bank of India, Mr.Nirmit Ved, signed the Line of Credits, and Deputy General Manager of the EXIM Bank of India, Mr. Amith Kumar, signed the Buyer’s Credit Agreements.

The Government of India has played a pivotal role in spearheading Sri Lanka’s External Debt Restructuring Process, co-chairing the Official Creditor Committee alongside France and Japan. 

The conclusion of the bilateral Amendment Agreements is expected to pave the way for developing further the deep and longstanding bilateral relationships between the Governments of India and Sri Lanka. (Newswire)

The post SL & India sign USD 930.8 Mn Debt Restructuring Deal appeared first on Newswire.

China’s Export-Import Bank has reached a preliminary agreement with Sri Lanka on resolving China-related debt, as per a report by Bloomberg News. 

According to Bloomberg, China says one of its financial institutions has reached a preliminary agreement with Sri Lanka on resolving China-related debt, a potentially major step toward resolving the South Asian nation’s fiscal woes, it was reported.

As per the report, Chinese Foreign Ministry spokesman Wang Wenbin said Tuesday at a regular press briefing in Beijing, that the deal involving the Export-Import Bank of China was reached late last month.

Wang didn’t give details on how the debt was resolved, and officials in Sri Lanka didn’t immediately respond to requests for comment.

“Chinese financial institutions have fully participated in creditors’ meetings as observers, maintain friendly communication with other creditors and have shared developments on debt disposal,” Wang said.

The deal puts Sri Lanka closer to completing its debt restructuring, as the nation boosts efforts to win agreements with other creditors such as Japan and India, as well as with holders of its foreign bonds. China accounts for about 52% of the bankrupt nation’s bilateral debt. Reaching a deal quickly will allow Sri Lanka to keep tapping funds from its $3 billion bailout program with the International Monetary Fund.

Sri Lankan dollar bonds due 2030 were steady at 45.8 cents on the dollar. The nation’s dollar bonds had returned more than 50% this year, according to a Bloomberg index.

Bloomberg News reported last month that some members of the committee of Sri Lanka’s official creditors were pushing to reach a deal to restructure the nation’s debt without China’s participation.

The members wanted the group of major creditors to sign a memorandum of understanding with Sri Lanka around the time of the IMF and World Bank meetings which are ongoing in Marrakesh, Morocco.

Separately, Sri Lanka may be able to draw the outlines of a deal with holders of its defaulted dollar bonds as early as this month, Bloomberg reported in September.

Sri Lanka in September agreed to restructure about $10 billion of local debt. (NewsWire)

The post SL & China’s Exim Bank reach a preliminary deal – Bloomberg appeared first on Newswire.