Sri Lanka gets Chinese loan for low cost housing

June 05, 2009 (LBO) –Sri Lanka’s government is to take a 500 million dollar 20-year loan from China to build 100,000 low cost houses for state sector employees, shanty dwellers and people affected by disasters, the Cabinet office said.

A Cabinet memorandum on the project said the loan is to be arranged by state-owned China Shenyang International Economic and Technical Corporation (CSYIC) which will commence construction work on November 2009 on 10,000 houses initially.

Under the scheme, low cost housing units would be offered to tsunami and other disaster victims, for shanty relocation purposes, and as official quarters for state sector employees.

Some of the houses would be sold to state sector employees on a concessionary basis, the government said.

The loan will carry an interest component ranging between one to three percent and capital repayments will start only after five years, according to the Cabinet paper released to the media.

Exim Bank of China would arrange the finances for the housing project of which the first installment would be 100 million dollars.

The implementing agency of this project would be the Ministry of Construction and Engineering Services.

The cabinet memorandum s