Sri Lanka considers big China loan to repay foreign debts

COLOMBO, Sri Lanka (AP) — A finance ministry official says Sri Lanka is considering a $300 million loan offer from the Bank of China as it prepares to repay foreign debts this year.

Foreign Ministry Spokesman M.R. Hasan said Wednesday that the government has appointed a three-member committee to negotiate the deal.

He says the loan is repayable in three years.

Sri Lanka this year must repay $5.9 billion in foreign loans of which 40 percent needs to be serviced during the first three months. It paid back $1 billion this week.

China considers Sri Lanka part of its “One Belt One Road” initiative and has heavily invested in infrastructure.

Categories: International News