May 14, Colombo: The Chinese government has approved US$ 1 billion loan to fund the construction of the phase one of the Central Expressway project.
Ambassador of China in Colombo, Cheng Xueyuan has informed this to Prime Minister Ranil Wickremesinghe when he called on the Premier this afternoon at Temple Trees, Prime Minister's Office said.
The Chinese Ambassador has informed the Prime Minister that the loan would be granted through the Exim Bank of China. The ambassador requested the Sri Lankan side to expedite administrative and legal formalities, the PM’s Office said.
The Chinese ambassador has also discussed Hambantota port project and Colombo Port City project with the Premier, according to his office.
With regard to Hambantota Port, Chinese ambassador mentioned that they encourage investors to set up factories for producing high end products, the statement said. The ambassador said once started the two projects will become the engine of growth for Sri Lanka.
The last tranche for the payment of Hambantota port, which is expected to enhance the foreign reserves of the country is due on 9th June.
The Chinese ambassador also requested to expedite the negotiations for signing of Chinese free trade agreement. The progress of Chinese funded water projects were also discussed.