Sri Lanka yesterday has entered into a RMB 2 billion (around Rs. 61.5 billion) term facility agreement with the China Development Bank (CDB) in a move that will boost sagging foreign reserves.

The deal was signed by Sri Lanka’s Ambassador in Beijing Dr. Palitha Kohona and CDB Global Finance Director General of International Cooperation Department 2 Wang Wei.

“The facility will provide welcome relief and create more confidence in Sri Lanka’s economy,” Ambassador Kohona said in a statement.

He thanked the Chinese Government for extending the facility at a time when Sri Lanka was facing a severe economic challenge exacerbated by the COVID pandemic.

The Ambassador also said that China had been assisting Sri Lanka by providing the COVID-19 vaccine. So far Sri Lanka has received 12 million doses of Sinopharm vaccine on commercial terms and another 2.7 million doses as donation.

“Dr. Kohona said that the Sri Lankan people will always remember the assistance extended by China at this trying time,” the statement added.

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