Sri Lanka borrowings not limited to China: Treasury Secretary

Oct 11, 2012 (LBO) – Sri Lanka’s external financing has got diversified out of a traditional Western led donor group but the country was not just depending on China, despite such a perception building up, Treasury secretary P B Jayasundera said. “Although there is a perception that we have only Chinese assistance for development, the country has got a much more diversified – much more than the ‘Paris Club’ kind of limited assistance,” he told the alumni of Sri Lanka’s University of Colombo.

The ‘Paris Club’ of donors were the key source of Sri Lanka’s external funding when the country was wary of higher cost commercial financing and its per person economic output was lower.

In recent years Sri Lanka has moved to export import credit from several countries and also to international capital markets.

Jayasundera was delivering an oration in memory of Sujata Jayawardena, a distinguished former head of alumni association of the university.

Over the past five years, China has become a top lender to Sri Lanka and is on track to overtake Japan, the island’s biggest lender after World War II.

Good Relationship

Sri Lanka has also got 2.5 billion US dollars from the International Monetary Fund following a balance of pa