CHINA-SRI LANKA: SRI LANKA IS NEGOTIATING A SECOND LOAN FROM CHINA
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The South China Morning Post (March 21) disclosed that China is considering offering a
US$1.5 billion credit facility to Sri Lanka. Chinese Ambassador to Sri Lanka Qi Zhenhong told
reporters the two sides were also discussing a separate loan of up to US$1 billion which the Sri
Lankan government had requested. He added that the South Asian nation was offered a loan of
US$500 million from the China Development Bank on March 18.
(Comment: Sri Lanka has to repay about US$4 billion worth of debt this year, including a US$1
billion international sovereign bond maturing in July. But its reserves dipped to US$2.31 billion
as of end February, down around 70 per cent from two years ago.)
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