Chinese Deal

July 28, 2009 (LBO) – Sri Lanka’s Central Bank said it has signed an Investment Facilitation Agreement with China Development Bank, considered one of China’s three policy banks that also funds the country’s large infrastructure projects. “Under this agreement, China Development Bank will initially place a US dollar deposit with the Central Bank of Sri Lanka, while also progressing towards long-term economic ties between the two institutions,” the Central Bank said in a statement.

China Development Bank is also one of the biggest issuers of bonds in China.

Sri Lanka’s ties with China have grown stronger in recent years with China providing weapons to fight the Tamil Tigers, who were defeated in May, and loans and investments by Chinese companies.