Sri Lanka army seeks USD50mn loan from Russia for Mali operations

Jan 26, 2017 (LBO) – Sri Lanka’s cabinet nod has been received to obtain a 50 million US dollar loan from a Russian bank to purchase military equipment required to deploy troops for peacekeeping in Mali.

Sri Lanka has made commitments with United Nations to deploy 250 security personnel with major military equipment as well as equipment for self-sustainment for a peacekeeping mission in Mali.

After loan negotiations, Prime Minister Ranil Wickremesinghe as the Minister of National Policies and Economic Affairs, has proposed to fund the purchasing of equipment required for the troops through a loan agreement with the Russian Bank SBERBANK.

Total credit amount to be obtained from SBERBANK is 50.09 million US dollars which comprises of 46.41 million US dollars contract value plus 3.68 million US dollars of export credit insurance.

Repayment period for the loan is eight and half years including one and half years grace period and it is yet to obtain views from the Monetary Board of Sri Lanka.