Pakistan extends $ 200 m loan for development in Sri Lanka

Saturday, 11 February 2012 00:37 - - {{hitsCtrl.values.hits}}

Pakistan has agreed to extend an Export Credit Facility of US$ 200 million through the State Bank of Pakistan to build houses for Sri Lanka’s slum dwellers, the Government’s official website said on Friday. This was agreed during the visit of Pakistani President to Sri Lanka in November 2010 and comes in the backdrop of President Mahinda Rajapaksa commencing a two-day tour to the close neighbor.

“An amount of US$ 150 million of this credit is to be utilised for the construction of housing units for slum dwellers in Colombo and suburbs while the balance US$ 50 million will be for the importation of livestock, plant and machinery from Pakistan,” the website post said.

The loan agreement will be signed with the Pakistan Government during the current State visit of Rajapaksa.

Rajapaksa is accompanied on the two-day State visit by several ministers and officials.

Sri Lanka and Pakistan have historical close relations, particularly during the last phase of a three-decade war in 2009 with Pakistan selling weapons to defeat the Liberation Tamil Tigers of Eelam (LTTE).

However, since peace dawned, this is the first large-scale development loan that has been extended by the country.