Republic of Korea agrees to grant a US$ 500 mn concessionary loan to Sri Lanka for economic development

The Government of Korea has agreed to grant a concessionary loan of a sum equivalent to US$ 500 million to Sri Lanka for development purposes with a view to further strengthening the friendship and the economic cooperation between the two countries.

The loan is scheduled to be given within the period from 2017 to 2019 from the Economic Development Corporation Fund of the Export and Import Bank of Korea.

The Korean loan aid is granted at very low interest rates with a 40 year repayment period including a 10 year grace period.

Accordingly, the Prime Minister Ranil Wickremesinghe in his capacity as the Minister of National Policies and Economic Affairs has made a proposal to enter into a Framework Agreement with the Government of the Republic of Korea to obtain the concessionary loan.

The Cabinet of Ministers at its weekly meeting on November 7 has approved the Prime Minister’s proposal.