China continues to be the largest lender to Sri Lanka by making financial commitments amounting to $ 989 million in the first quarter of 2019, far ahead of development agencies such as the World Bank, Asian Development Bank, and others, the latest report released by the Finance Ministry said.
The Government has made arrangements to mobilize foreign financing of US$ 2,439 million by entering into 19 Agreements with foreign development partners and lending agencies from 1st January to 30th April 2019, to support the public investment program.
This mobilization consists of US$ 2,431 million in the form of loans, that is, Official Development Assistance (ODA) and US$ 8 million by way of ODA grants and technical assistance.
China led the ODA commitments during this period amounting to US$ 989 million followed by the World Bank (US$ 352 million), Asian Development Bank (US$ 310 million), Asian Infrastructure Investment Bank (US$ 280 million), Japan (US$ 270 million), France (US$ 85 million), HSBC-Hong Kong (US$ million 72), United Kingdom (US$ 64 million), Austria (US$ 10 million), Korea (US$ 6 million), Food and Agriculture Organization (US$ 0.3 million), and United Nations High Commissioner for Refugees (US$ 0.02 million), respectively. Of the commitments made in the form of ODA during the first four months of 2019, the highest amount was committed for the roads and bridges sector (US$ 1,053 million), while the ground transport sector received commitments of US$ 570 million.
In addition to the funds raised from ODA development partners, US$ 2,400 million was raised through International Sovereign Bonds (ISB) during the period under review of which, US$ 1,000 million was raised at a fixed interest rate of 6.85 per cent with a 5 year tenure while the balance US$ 1,400 million was raised at a fixed interest rate of 7.85 per cent with 10 year tenure.
(LI)