Sri Lanka gets US$1bn eight-year loan from China Development Bank

ECONOMYNEXT – Sri Lanka has got a billion dollar loan from China Development Bank (CDB) with an eight-year maturity and three-year grace period, the central bank announced in a statement.

It did not say what the interest was except that “the interest cost is highly competitive and linked to 6 month US dollar LIBOR (London inter-bank offered rate).

“The repayment will be in equal semi-annual payments after the grace period. The resulting inflow increases the official foreign reserves by US$1,000 million.”

The central bank said the government had invited to submit proposals from international and domestic banks and investment houses for a Foreign Currency Term Financing Facility (FCTFF).

This was to be denominated in United State dollar, Japanese yen or euro or of their combination up to a limit of US$1,000 million in March 2018.

Four proposals were received from international and domestic banks and investment houses.

“A Cabinet appointed Steering Committee and Technical Evaluation Committee chose China Development Bank as the syndicate arranger based on least cost and longer maturity period given in its proposal submitted,” the central bank said.
(COLOMBO, 17 Octber, 2018)

Good that they fill the coffers  to meet the lavish spending of the members of the next government.

The next government too forms the same members but color may be different.

I expect some appreciation in LKR against USD during next one to two weeks time as I expect more selling of USD export proceeds before the loan proceeds comes into BOP.

ණය අරන් මඩිස්සලේ තියා ගැනිමත් ඉස්සර ණය අරන් තණ කොළ වවපුවා වගේ වෙනවා ඒවා සල්ලි පැටව් ගස්සන දෙයකට නොයෙදෙව්වොත්.

මෙහෙම කරන්නත් පුලුවන්....එක බැන්කුවකින් අරගෙන තව බැන්කුවකට ගෙවන්නත් පුලුවන්. ණය එසේමයි නමුත් සන්චිතත් එසේමයි......

So no issues for the Dollar, isn't it.

Smart thinking

The Invisible wrote:මෙහෙම කරන්නත් පුලුවන්....එක බැන්කුවකින් අරගෙන තව බැන්කුවකට ගෙවන්නත් පුලුවන්. ණය එසේමයි නමුත් සන්චිතත් එසේමයි......

So no issues for the Dollar, isn't it.

Smart thinking  

He he.
Issue is mun poliya gewannawath weda karanne nane.

Sri Lanka rupee is continue to slide down. Can the Government keep rupee at least 180 range by the end of the year? Are they capable of managing this while having the market-driven exchange rate mechanism. Or will CB consider implementing controlled exchange rate policy as a temporary remedy ?

When these proceeds are coming to Sri Lanka.?