Jan 10, Colombo: The Sri Lankan government today received approval from the Cabinet to obtain a Rs. 19 billion loan (Yuan 960 million) from China to finance the additional cost of Phase I of the Hambantota Port Development Project.
The Cabinet approved Sri Lankan President Mahinda Rajapaksa's proposal to enter into a Framework Agreement with Chinese government to obtain the loan from the Exim Bank of China under Chinese Government Concessional Loan Facility.
The loan will be used to finance the additional cost for ancillary works and supply of equipment of Phase I of the Hambantota Port Development Project
The Phase I of the Project, under which the construction of the breakwater, approaching channel, harbor basin, stocking yard, roads and administration building were completed, was financed by China's Exim Bank.
The Exim Bank has also agreed to provide a Chinese government concessional loan of 1 Billion Yuan (approximately US$ 157 million) to finance Phase II of the Hambantota Port Development Project.
The proposed project will benefit the local community economically and socially and will generate direct income and indirect employment opportunities in the area, the government says.