RTI exposure reveals US$ 8.2 billion loans from China during past 12 years

Sri Lanka has obtained loans from China amounting to more than Rs. 1,029 billion (US $8.2 billion ) in the period 2005 to 2017, information obtained by the way of a Right to Information (RTI) application revealed.

The loans have been taken from the China Development Bank Corporation and the Export-Import Bank of China and have been for major projects such as highways, power plants, water supply and sewerage schemes.

More than Rs. 188billion from these loans went for the work on the Hambantota Port

Development Project with the total amount obtained in 2007 of around Rs. 34.2 billion while for Phase II of the project loans amounting to around Rs154 billion were obtained from the Export – Import Bank of China in 2012 and 2013.

In 2005 and 2006, more than Rs.72 billion was obtained for the Puttlam coal power project. Of this

Rs. 30. 2 billion came as preferential buyer’s credit and around Rs.15.9 billion as a buyer’s credit facility.

Other loans obtained during the previous regime between 2007 and 2015 include funds for the Moragahakanda Development project ( Rs. 28.69 billion), purchase of 100 Railway passenger carriages ( Rs3 billion), 15 diesel multiple units (Rs4.9 billion), Bunkering facility and tank farm project at Hambantota ( Rs7.4 billion), Mattala International Airport project (Rs. 21.7 billion), MA 60 aircraft project (Rs. 4.63 billion) and procurement of materials for lighting Uva Province (Rs. 3.7 billion).

Loans had also been obtained for the Colombo- Katunayaka express way project, Northern province power sector development projects, Northern road rehabilitation projects, g reater Kurunegala water supply and sewerage project and Hambantota hub development project .

Since this Government took office, loans amounting to more than Rs 300 billion have been obtained from China namely for the extension of the Southern expressway from Matara to Beliatta ( Rs89.5 billion), and Beliatta to Wetiya ( Rs51.8 billion), the nor ther n Pathadumbara integrated water supply project (Rs 38 billion) and for consultancy services for design review and construction supervision of civil works on extension of the southern highway project ( Rs.13.4 billion and the Thalpitigala reservoir project (Rs 22.6 billion).

The information was obtained by way of a RTI application to the Ministry of Finance.