Sri Lanka to get US1.5bn from China bank

June 23, 2011 (LBO) – China Development Bank Corporation has agreed to finance infrastructure projects in Sri Lanka amounting 1.5 billion US dollars over the next three years, minister Anura Yapa said.

China is becoming a key financier of Sri Lanka displacing traditional donors, Japan and the Asian Development Bank.

“The financial assistance will be for bridges, roads, water supply, irrigation and power,” minister Yapa told reporters.

He said the cabinet of ministers had approved signing of a memorandum of understanding between China Development Bank Corporation and Sri Lanka’s finance ministry over the loans.

China’s Exim Bank is already a major financier of Sri Lanka’s infrastructure including a coal power plant.