SL gets 500 million loan from South korea

The Government of the Republic of Korea has agreed to provide concessional loans from the Economic Development Cooperation Fund (EDCF) of the Export-Import Bank of Korea (KEximbank). USD 500 million will be available to finance projects mutually agreed.

 

The loan interest rate on this concessional loan is about as low as 0.15% -0.20% and the loan has a repayment period of about 40 years with a grace period of 10 years.The government said South Korea agreed to provide the loan at a concessional interest rate of 0.15 to 0.20 percent, repayable over 40 years with a 10-year grace period. "The framework arrangement was signed today," the finance ministry said in a statement.

 

Last month Colombo raised another $500 million loan from Beijing in a desperate bid to shore up its dwindling foreign reserves and ease pressure on the local currency. In addition, the two sides agreed to continue the Korean Exim Bank Representative Office, which was opened in Colombo in January 2016 by its Chairman, to further implement the projects in a well-coordinated manner.

 

The Framework Arrangement was signed today (on May 10, 2021) by Mr. S R Attygalle, Secretary, Ministry of Finance on behalf of the Government of Sri Lanka, and Mr. Woonjin Jeong, His Excellency the Ambassador of the Republic of Korea, representing the Republic of Korea.