US$ 15.7 million Chinese grant to promote economic and technical cooperation

China is granting US$ 15.7 million to Sri Lanka to promote economic and technical cooperation between the two countries, a Minister said here on Thursday.  

China has agreed to provide a grant of Yuan 100 million to Sri Lanka under a proposal made by Sri Lankan President Mahinda Rajapaksa.

“This grant will be used to enter into an Economic and Technical Cooperation Agreement between the two countries in December 2011. The proposal was presented to the Cabinet by the President and approved,” Cabinet Spokesman and Media Minister Keheliya Rambukwella told media.

Since the end of the brutal three-decade conflict in 2009, China has played and increasing role in Sri Lanka’s development, funding most of the massive infrastructure projects around the country, including ports, highways, roads, an international airport and a coal power plant.  

In 2010 China was Sri Lanka’s largest funder with US$ 814 million in loans.

Moreover, a Chinese company has also provided the highest single Foreign Direct Investment deal to Sri Lanka through a US$ 500 million terminal project.

To further cement Sino-Lankan relations, the Chinese Government is gifting a US$ 27 million performing arts theatre, which was opened by the President yesterday.