The Export Import Bank of China was the top lender followed by China Development Bank and the Industrial and Commercial Bank of China, the finance ministry's annual report said. Grants and interest free loans are given by the Chinese government.
China had financed 1.46 billion US dollars of roads and bridges, including in the former war torn northern areas, which was 58 percent of the funding. Power and energy had received 20 percent and ports and airports 17 percent.
About 400 million dollars were categorized 'concessional loans' denominated in Renminbi. Of this 190 million US dollars were taken by Airport and Aviation Services Sri Lanka Ltd, under a Treasury guarantee.
The Renminbi is an appreciating currency against the US dollar.
Another 891 million US dollars came as 'preferential buyer's credit'. It was received by Lanka Coal Company Ltd, under Treasury guarantee.
Sri Lanka's Ceylon Electricity Board built its first 300 MegaWatt coal plant with Chinese financing and the construction of the balance 600MW is now underway.Key Chinese financed projects included a 360.8 million dollar port in Hambantota in the South which was financed with a 306.7 million dollar loan from the Exim Bank of China.
The Exim Bank is also financing a 25.8 million kilometer expressway to the capital from the main airport Last year 53 million Us dollars had been disbursed for the airport road, 91 million US dollars for roads in the north of the island.
China is also financing an airport in Mattala in the South. China financed projects are mainly built by Chinese contractors sometimes on a turnkey basis and are quickly completed.
In 2009 and 2010 China had a utilization rate of 38.3 percent and 46.7 percent, compared with an average rate of 25.7 percent for all projects. In 2011 the utilization rate dropped to 18.5 percent amid an average fall to 21.8 percent.
Over the last five years China has emerged as the top source of new loans.
Looks like we were bought by the Chinese.