Japan leads loan commitments to Sri Lanka up to April 2014

Standing left to right – Mr. Dinesh Jebamani (Chief Manager Liability Product Management and New Age Media – Seylan Bank), Mr.Sudesh Peiris (Senior Manager – Digital Banking Channels – Seylan Bank), Ms. S.Senevirathne (Representative of the Revenue Department – Western Province), Mr. Tilan Wijeyesekera (Deputy General Manager – Retail Banking – Seylan Bank) and Mr. Malik Wickremanayaka (Deputy General Manager – Operations – Seylan Bank)

July 02, 2014 (LBO) – Sri Lanka has signed up 678.2 million US dollars in foreign loans in the first four months of 2014 and Japan led the tables giving 342.8 million US dollars for a new bridge to the capital, official data showed. Outstanding foreign debt not counting rupee denominated Treasuries owned by foreigner was 21.1 billion US dollars by end April 2014.

Debt service payments up to April were 390.5 million US dollars of which 244 million was for principle payments and the balance 146.4 million US dollars was for interest payments.

In 2014 Sri Lanka had to repay 1.279 million US dollars of which 31 percent had been paid by end April.

A mid-year fiscal report showed that China Development Bank committed 300 million US dollars for a road building and the Kuwait Fund for Economic Development has loaned another 10 million US dollars.

Japans yen denominated loan (35 billion yen) came at a fixed interest rate of 0.10 percent, a 0.2 percent one time front end fee, 10 year grace period and 40 year payback.

The loan from China came at 295 basis points above 6-month US dollar London Interbank Offered Rate, with 3-year grace and 15.5 years payback.

The loan from Kuwait was at 0.2 percent with 0.5 percent