Completed Development AidData Chinese Aid

CDB provides RMB 2 billion loan in 2021 to help Government of Sri Lanka meet its outstanding debt obligations and shore up foreign exchange reserves (Linked to Record ID#71123, ID#89482, ID#89483)

¥2M RMB

Funder	China Development Bank (CDB)
Recipient Organization	Government of Sri Lanka
Country	Sri Lanka
Start Date	Aug 31, 2021
End Date	May 06, 2026
Duration	1,709 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`89484`

Grant Description

CDB provides RMB 2 billion loan in 2021 to help Government of Sri Lanka meet its outstanding debt obligations and shore up foreign exchange reserves On August 17, 2021, China Development Bank and the Government of Sri Lanka signed an RMB 2 billion (approximately LKR 61.5 billion) term loan agreement (ID# 4510202001100001746).

📋 Loan / Grant Terms

💰 Loan Amountcarried the following borrowing terms: an 10-year maturity

📅 Maturity10 years

⏳ Grace Period3 years

The proceeds of the loan were to be used by the borrower (the Government of Sri Lanka) to shore up official foreign reserves and meet outstanding debt obligations (i.e. repay other loans). The loan fully disbursed on August 31, 2021. The loan’s outstanding amount was RMB 2 billion as of June 30, 2022.

📋 Staff Comments

AidData calculated the all-in interest rate (4.85%) by taking the LPR 5Y (5-year China Loan Prime Rate) rate during the month and year (August 2021) when the loan agreement was finalized (4.65%) and adding a 0.2% margin.
In order to meet its outstanding debt obligations and shore up foreign exchange reserves, the Government of Sri Lanka signed a $1 billion foreign currency term financing facility agreement (FTFF) with CDB on October 12, 2018 (captured via Project ID#71123), a $500 million FCTFF with CDB on March 18, 2020 (captured via ID#89482), and a $500 million FCTFF with CDB on April 12, 2021 (captured via ID#89483). AidData assumes that the purposes of the RMB 2 billion CDB loan and the 2018, 2020, and 2021 foreign currency term financing facility agreements (FTFFs) are identical.
The Government of Sri Lanka loan key number is 2021026.

📚 Sources & References

RMB 2000 million Facility Agreement between Sri Lanka and China
Press Release: RMB 2000 million Facility Agreement between Sri Lanka and China
FISCAL MANAGEMENT REPORT 2022
Sri Lanka inks Rs. 61.5 billion Term Facility with China Development Bank
Tweet from Chinese Embassy in Sri Lanka dated Aug 17, 2021, 2021 ANNUAL REPORT (Volume I)
Sri Lankan to end with US$ 3.1B worth foreign reserves
Fitch downgrades Sri Lanka Long Term Foreign Currency
Sri Lanka inks Rs. 61.5 billion Term Facility with China Development Bank
CHINESE DEVELOPMENT BANK GRANTS 61 BILLION RUPEES
Sri Lanka signs USD 308 million-loan agreement with China ; part of USD 1.2 billion credit package
CS-DRMS Report 814
The Export-Import Bank of China
Disbursements in 2014 January to December.pdf, 814 Disbursements Jan to Dec 2015
Disbursement from January to December 2016.pdf, 814-1 Annual 2017 for WEB New.pdf
Transactions For the period from to 2019/01/01 2019/12/31, 814 up to Oct 2018.PDF
Transactions For the period from to 2020/01/01 2020/12/31
Transactions For the period from to 2021/01/01 2021/11/30
Actual Disbursement by Transaction Date
FINANCIAL STATEMENTS OF THE GOVERNMENT FOR THE YEAR ENDED 31ST DECEMBER 2018
FINANCIAL STATEMENTS OF THE GOVERNMENT FOR THE YEAR ENDED 31ST DECEMBER 2019
FINANCIAL STATEMENTS OF THE GOVERNMENT FOR THE YEAR ENDED 31ST DECEMBER 2021
Instrument-wise Details of Central Government External Debt obtained under Foreign Law as at 2022/06/30
FINANCIAL STATEMENTS OF THE GOVERNMENT FOR THE YEAR ENDED 31 ST DECEMBER 2020 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.