Sri Lanka today signed a new $ 500 million funding deal with China Development Bank (CDB), the Finance Ministry said.
CDB in 2018 extended a $ 1 billion syndicated loan of an eight-year tenure. It has now upsized this support with a fresh extension of $ 500 million with a 10-year tenure and more attractive terms.
The Daily FT reported that the fresh Chinese funding will significantly help the Government in managing its debt refinancing.
Sri Lanka has to repay a total of $ 4.8 billion this year, with the next large payment of $ 1 billion due in September.
After the conclusion of the 25 April General Elections, via a proper 2020 Budget, the Government is expected to articulate its borrowing and debt servicing program for rest of the year as well as for 2021. (Colombo Gazette)