Chinese-backed Development Bank in talks with Sri Lanka for a loan of a billion US dollars

<p>Sri Lanka Finance Minister, Mangala Samaraweera, has stated that he is currently in discussion with a Chinese-backed Asian Infrastructure Development Bank for a loan of up to a billion US dollars.</p> <p>In parliament, Samaraweera said he was "in talks with AIIB for close to a billion US dollars in funds for the power sector and highways development,"</p> <p>The Chinese-backed bank has already confirmed it will provide 280 million US dollars for Colombo Urban Development and a project for landslide protection.</p> <p>There had been discussions last year of an offer of&nbsp; 300 million US dollars from Bank of China, but officials said talks had been since dropped.</p> <p>Samaraweera has said that confidence in Sri Lanka’s economy is rising since the attempted coup in October and was now getting back on track. The economy took a further hit in terms of tourism following the devastating Easter bombings.&nbsp;</p> <p><strong>Read more here:&nbsp;<a href="https://www.tamilguardian.com/content/sri-lanka%E2%80%99s-tourism-conti…">Sri Lanka’s tourism continues to tumble in the wake of Easter Sunday attacks</a></strong></p> <p>In May the International Monetary Fund (IMF) approved a loan of 164 million US dollars and the&nbsp; US Millennium Challenge Corporation had approved 480 million US dollars. The Asian Development Bank approved 50 million US dollars for micro-loans last week.&nbsp;</p> <p>Whilst the IMF has granted this loan they have also urged Sri Lanka not to impose import controls for 'balance of payments' purposes.</p> <p>Sri Lanka’s economic growth is estimated to be around 3.5 per cent in the first quarter of 2019, up from 1.8 per cent in the last quarter of 2018.&nbsp;</p> <p>Read more <strong><a href="https://economynext.com/Sri_Lanka_in_talks_with_China_backed_AIIB_for_l…">here</a>.</strong></p>