Bank of China offers SL USD 300 mn loan

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Bank of China, the country’s fourth-biggest lender by assets, has offered a loan of US$300 million to Sri Lanka which can be raised to US$1 billion, a source in Colombo with direct knowledge of the matter, told Reuters yesterday.

The government is considering the offer because of “difficulty in borrowing money after recent rating downgrades”, the source said, declining to be named as the information was not public.

Reuters could not immediately reach Sri Lanka’s Ministry of Finance and the Bank of China.

Sri Lanka, an island nation off India’s southeastern coast, is struggling to repay its foreign loans, with a record US$5.9 billion due this year including US$2.6 billion in the first three months alone.