Sri Lanka commercial banks finance road

(From left) Dharmasri Kumaratunga, Director - Payments and Settlements, Central Bank; Nanda Fernando, Managing Director, Sampath Bank; and Tharaka Ranwala, Head of Operations and Group Chief Marketing Officer, Sampath Bank

May 24, 2012 (LBO) – Sri Lanka will build a 24.14 kilometre road in the island’s south with 1.98 billion rupees in commercial bank credit from Commercial Bank and DFCC Bank, minister Lakshman Abeywardene said. The road from Matara to Hakmana will connect to a planned expressway running to Hambantota, he said. The road will be built by domestic contractors.

Commercial Bank will loan 1.4 billion rupees with 2.5 year grace for 14 years with monthly repayment at an nterest rate 9.0 percent.

DFCC will loan 5.98 billion rupees 2 year grace for 14-years at 9 percent rate with half yearly repayment.

Both loans will be covered by Treasury guarantees.