Japan overtakes China as largest lender to Lanka

5 July 2013 03:30 am - 0 - {{hitsCtrl.values.hits}}

A A A

Overtaking China, Japan became the single largest development finance provider to Sri Lanka during the first four months. The total financing commitment made by the bilateral development partner was as much as US $ 500 million during January to April 2013, almost the total amount provided by Japan during the entire year of 2012, according to the Finance Ministry.

According to the mid-year fiscal position report, during January - April 2013, out of the total US $ 457.3 million committed by Japan, 94 percent or US $ 429 million were loans while the balance US $ 28.3 million was grants. The corresponding amount during 2012 stood at US $ 524 million.

China which topped the list last year with over US $ 1 billion in loans to Sri Lanka came second during the first four month to April this year with a total financial commitment of US $ 354.5 million. What is notable here was that China has provided only loans to Sri Lanka with no grants both in 2012 and 2013.

Meanwhile during the first four months, the development partners and lending agencies to Sri Lanka have committed as much as US $ 1,027.8 million in support of ongoing public investment program. Further, out of these total commitments, US $ 996.7 million came as project loans while US $ 31.1 million were grants.

Foreign financing commitments to Sri Lanka have been growing at an annual average of 19 percent since 2006 and in 2012 a total of US $ 3,152 million was received of which US $ 2,789 was project loans and US $ 363 million grants.

Of the total commitments during the period under review, 44 percent of funds had been committed by Japan followed by 35 percent from China. Others include 5 percent by Hungary, 4 percent each by United Kingdom and Asian Development Bank. From the total commitments recorded during the period under review, 90 percent was for infrastructure development projects. The capital expenditure during the first four months increased from 2.1 percent of GDP to 2.3 percent.

The government reiterated commitment to maintain its share of capital expenditure to 6.0 percent of GDP per annum. With the country reaching middle income status, the amount of concessionary loans have gradually declined by 44 percent from US $ 2,615 million in 2006 to US $ 1,475 in 2012 while nonconcessionary loans increasing six folds from US $ 260 million to US $ 1,677 million during the same period.

The average interest rate of foreign currency denominated debt excluding Sri Lanka Development Bonds increased to 3 percent in 2012 compared to 2.2 percent in 2011. In January, the government’s attempt to obtain US $ 1.0 billion financial support for infrastructure development projects from the International Monetary Fund failed as the multilateral lender declined to provide budget support.

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 0

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Japan overtakes China as largest lender to Lanka

Comments - 0

Add comment

RECOMMENDED

‘Spike in blast fishing’ poses renewed threats to Sri Lanka’s marine ecosystems

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Most Viewed in News

New Visa procedure implemented

Two racing drivers arrested over Fox Hill tragedy

Train fails to halt, crashes onto Colombo Fort platform

Complaint lodged over Piumi Hansamali's possession of Gota’s Range Rover

SL on alert on possible genocide allegations by Canada

Sri Lankan among NASA’s new crew for next simulated Mars journey

MIRROR CRICKET

Is Chamari Athapaththu Sri Lanka’s greatest cricketer ever?

Athapaththu back atop ICC Women’s ODI Batting Rankings

Chamari Athapaththu sets big goal for T20 World Cup

How does CSK get best out of Pathirana?

TODAY'S HEADLINES

SL took minimal steps to punish officials who committed human rights abuses: US report

Iranian President’s visit Sri Lanka withstands western pressure

25 tons of solid waste disposed along Sri Pada route

Temperature rises to ‘Caution’ level

Sri Lanka secures third spot in South Asian Kurash Championship 2024

Athapaththu back atop ICC Women’s ODI Batting Rankings

Army forms committee to probe Diyatalawa Fox Hill Supercross accident

Indian cricket manager indicted for Legend Cricket League match-fixing allegations