COLOMBO: China has approved a $1 billion loan to revive a long-delayed expressway in central Sri Lanka, the island's government said on Monday.
Construction of the first phase of the road linking the capital Colombo with the hill resort of Kandy had been delayed for more than two years due to a lack of foreign funding, according to local media reports. PM
Ranil Wickremesinghe's office said he met the Chinese ambassador today, who told him Beijing had decided to approve the loan that will be provided through the
Export-Import Bank of China.
China has emerged as the largest single lender to Sri Lanka in recent years, securing contracts to build roads, railways and ports under the former government of
Mahinda Rajapakse. After Wickremesinghe came to power in January 2015, many projects were suspended pending investigations into corruption allegations, but construction work has recently restarted following renegotiations. Last August, China took over a loss-making deep-sea port in the island's south on a 99-year lease under a $1.1 billion deal.
Colombo is a key hub for Indian cargo, and Beijing has been accused of seeking to develop facilities around the Indian Ocean to counter the rise of its rival and secure its own economic interests.