SL owes China Exim Bank US$ 2.6 B
BY ZAHRAH IMTIAZ AND SKANDHA GUNASEKARA-August 21, 2014
The government has borrowed a total of US$ 2.6 billion (US$ 2,665 million) from the Export-Import (EXIM) Bank of China during the period 2009-2013 for various development projects in the country.
This was revealed by Deputy Minister of Finance and Planning, Dr. Sarath Amunugama in Parliament yesterday.
These funds were mainly utilized for the Hambantota Port, Katunayake Expressway, Norochcholai Coal Power Plant, Railway projects, Northern Province electricity and road development projects, Southern Expressway, electricity projects in the Uva and Eastern Provinces.
While the first phase of the Hambantota Port and the Katunayake Expressway were given loans at an interest rate on average of 6.5%, the rest were borrowed at a rate of 2% per annum.
The Opposition, meanwhile, questioned as to why the government had dealt exclusively with the EXIM Bank for all its major development projects and whether the government received a special commission for transacting with the EXIM Bank.
Responding to the query, Deputy Minister Amunugama said, there were no such special considerations made towards EXIM bank and that all dealings were done after careful study and planning. He added that the government also dealt with the China Development Bank.
BY ZAHRAH IMTIAZ AND SKANDHA GUNASEKARA-August 21, 2014
The government has borrowed a total of US$ 2.6 billion (US$ 2,665 million) from the Export-Import (EXIM) Bank of China during the period 2009-2013 for various development projects in the country.
This was revealed by Deputy Minister of Finance and Planning, Dr. Sarath Amunugama in Parliament yesterday.
These funds were mainly utilized for the Hambantota Port, Katunayake Expressway, Norochcholai Coal Power Plant, Railway projects, Northern Province electricity and road development projects, Southern Expressway, electricity projects in the Uva and Eastern Provinces.
While the first phase of the Hambantota Port and the Katunayake Expressway were given loans at an interest rate on average of 6.5%, the rest were borrowed at a rate of 2% per annum.
The Opposition, meanwhile, questioned as to why the government had dealt exclusively with the EXIM Bank for all its major development projects and whether the government received a special commission for transacting with the EXIM Bank.
Responding to the query, Deputy Minister Amunugama said, there were no such special considerations made towards EXIM bank and that all dealings were done after careful study and planning. He added that the government also dealt with the China Development Bank.
