The proposed US $ 1 billion loan to be obtained from China will be utilised to settle the previous loans taken by Sri Lanka from the Chinese banks, Lankadeepa Newspaper reported.
The Chinese Embassy in Colombo last week said the Sri Lankan Government has requested a US$ 1 billion loan and a US$ 1.5 billion credit line from China.
According to Lankadeepa, Sri Lanka Government hopes to use the US $ 1 billion loan to settle the previous loans taken from the Chinese banks.
Sri Lanka are currently exploring the possibility of rescheduling debts but China has reportedly informed it has no such system to reschedule debts payment.
courtesy NewsWire
