Drip Aid

Sri Lanka signed up for Rs. 26.1 bn worth of concessional aid from Japan to promote economic stabilization and development, the Finance Ministry said Wednesday. Sri Lanka signed up for Rs. 26.1 bn worth of concessional aid from Japan to promote economic stabilization and development, the Finance Ministry said Wednesday. The loans will carry a concessional annual interest rate of 0.75 percent to be repaid over a 40 year period.

“The interest rate has been reduced from the normal applicable rate of 1.5 percent in accordance with a new preferential scheme for peace building adopted by the government of Japan,” the statement said.

Close to half of the funds will be allocated for upgrading hospitals and schools, with the rest spent on developing the small-scale industry and as credit to companies to reduce environmental pollution.

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