$1.7 billion loan to Sri Lanka on hold as crisis continues

<p>An estimated $1.7 billion loan from Japan to Sri Lanka has been put on hold as political turmoil on the island continues, claimed the leader of the Sinhala extremist Jathika Hela Urumaya party.</p> <p>Champika Ranawaka, who was the Cabinet Minister of Megapolis and Western Development until Sri Lanka was plunged into crisis in October, was quoted by&nbsp;<a href="https://economynext.com/Sri_Lanka_political_crisis_derails_US$1.7bn_LRT…">Economy Next</a>&nbsp;as saying&nbsp;the loan has now been “derailed”. The payment was reported to have funded the construction of a light rail transit system in Colombo.</p> <p>"The loan was to have been signed in November 22," he told parliament, stating that other loans to Colombo &nbsp;have also been put on hold.</p> <p>Ranawaka’s claim comes after a senior US official confirmed that Sri Lanka’s participation in the Millennium Challenge Corporation (MCC), which is worth several million dollars in funding, has been “put on hold”.</p> <p>&nbsp;</p>