Rail Loan

Mar 05, 2013 (LBO) - Sri Lanka will get US8 million dollars in loans from China to build 26.
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75 kilometres of rail track from Matara to Beliatta in the South of the island, the finance ministry said. The Exim Bank of China will provide 200 million US dollars under an agreement signed on February 18 as a preferential buyers' credit at 2.
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0 percent interest with a 20-year repayment and 5-year grace period.
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The balance 78.2 million US dollars will be provided by the Chinese government, the finance ministry said without elaborating.

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Previous Chinese government loans have been denominated in Yuan.

The construction of the railroad involves building, bridges, culverts, viaducts, level crossings, road diversions, earth embankments and four railway stations.

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The rail track is the first phase of an extension running to Karataragama from Matara, via Hambantota.

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A new sea port and airport has been built in Hambantota with Chinese finance.
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