AIIB approves USD 180 mn loan to Sri Lanka

The Asian Infrastructure Investment Bank (AIIB) has approved Sri Lanka's request for USD 180 million loan for the Covid-19 emergency and crisis response facility to be disbursed through the Bank of Ceylon (USD 90 million) and People's Bank (USD 90 million), Sri Lankan Embassy in Beijing said.

The loan application was submitted in 2019. 

Dr. Kohona met the President of the AIIB (Mr. Jin Liqun) on 1st February 2021 to discuss this loan and other funding matters. 

Sri Lanka Ambassador to China, Dr. Palitha Kohona met Dr. D. J. Pandian, Vice President, at the Bank headquarters yesterday when the approval of the loan was confirmed. 

At the meeting, Dr. Kohona thanked the AIIB for the timely assistance in extending USD 180 million for the Covid19 crisis recovery for Small and Medium Scale Enterprises (SMEs). 

Further, Dr. Kohona briefed Dr. Pandian on the current Covid19 situation in Sri Lanka which has received wide commendation. He also spoke of Sri Lanka's handling of the economic challenges confronting Sri Lanka. 

Dr. Pandian invited the Sri Lanka private and government sectors to consider seeking funding for renewable energy (wind and solar power), electric public transport systems, light rail transport, electric vehicles, digital technology, shipbuilding, water supply and manufacturing. The Bank has sufficient funding for these sectors, especially for those involving renewable energy. 

Dr. Kohona said that Sri Lanka is one of the top 10 countries in the world in managing Covid19 and slowly beginning to normalize the economy. He expressed his confidence that the private sector would welcome the offer of funding. 

Dr. Kohona encourages the private sector to consider the offer of the AIIB and if interested, to contact the AIIB directly or through the Embassy.