Sri Lanka wraps up US$300mn arms loan with Russia: report

Directory launched in the presence of Jagath Perera, CA Sri Lanka President, Manil Jayesinghe, CA Sri Lanka Vice President, Harsha Basnayake, Ernst & Young Asia Pacific Transaction Advisory Managing Partner, Aruni Rajakarier, Chairperson of the CA Sri Lanka Women Empowerment Committee, Anoji De Silva, Alternate Chair of the Women Empowerment Committee and Dulani Fernando, CA Sri Lanka CEO

Feb 09, 2010 (LBO) – Sri Lanka has wrapped up a 300 million US dollar loan to buy “armaments and dual purpose technology” from Russia during a visit by President Mahinda Rajapaksa, a media report said. Russia and China have been the main arms suppliers to Sri Lanka during a 30-year war with Tamil Tiger separatists. RIA-Novosti, a Russian news agency, quoted the country’s deputy finance minister Dmitry Pankin as saying that Sri Lanka would get a 10 year loan at a premium of 3.5 percent above the London interbank offered rate.

Sri Lanka’s president President Mahinda Rajapaksa is to return to Sri Lanka Monday following the visit to the Russian Federation.

A weekend news report said the loan will cover repairs to damaged Russian military equipment already with Sri Lanka.