The Sri Lankan government has borrowed $2.6 billion from China’s state-owned Exim Bank, between 2009 and 2013, reports Ceylon Today.
Deputy Minister of Finance and Planning, Dr. Sarath Amunugama said in parliament yesterday that the money was used for various development projects on the island, including Hambantota Port, Katunayake Expressway, Norochcholai Coal Power Plant, Railway projects, Northern Province electricity and road development projects, Southern Expressway and electricity projects in the Uva and Eastern Provinces.
China's loans to Sri Lanka over the past four years totalled nearly $4 billion.
The loans are repayable over a 14 to 20 year period, at interest rates ranging from 1.53% to 6.5%, much higher than usual rates for infrastructure loans from the World Bank or the Asian Development Bank.
China’s loans to Sri Lanka reach nearly $4 billion (04 May 2014)
Who benefits from Chinese loans to Sri Lanka? (21 November 2010)