The proposed US $ 1 billion loan to be obtained from China will be utilised to settle the previous loans from the Chinese banks, Daily Mirror learns.
Sri Lanka’s current loans from China also amount to nearly US $ 1 billion, a top source said. The latest method will be adopted since China does not have the concept of rescheduling debts.
The authorities of the two countries are currently negotiating terms and conditions of the new financial facility to be extended.
Besides, there will be another US $ 1.5 billion buyer’s credit from China to import materials from China.