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Exclusive - Sri Lanka to receive Bank of China's $1 billion sovereign loan by March quarter

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Exclusive - Sri Lanka to receive Bank of China's $1 billion sovereign loan by March quarter
FILE PHOTO: Headquarters of the People's Bank of China (PBOC), the central bank, is pictured in Beijing, China September 28, 2018. REUTERS/Jason Lee/File Photo   -   Copyright  Jason Lee(Reuters)
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COLOMBO (Reuters) – Sri Lanka will receive a loan of $1 billion (£776 million) from Bank of China <601988.SS> before the end of the March quarter, the chief of the central bank said on Thursday, to help the country meet repayments in the coming months.

“We will get the $300 million before end of this month and upsize it to $1 billion. The whole loan will be taken in the first quarter,” Indrajit Coomaraswamy told Reuters.

Sri Lanka is struggling to repay its foreign loans, with a record $5.9 billion due this year including $2.6 billion in the first three months alone.

Coomaraswamy said the interest rate for the $300 million loan is around 5.5 percent. “This is a sovereign loan and does not require any collateral.” Details of the loan have not been previously released.

(Reporting by Shihar Aneez; Editing by Sanjeev Miglani)

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