China to provide USD 410 million grant for Lankan projects

The agreements were signed by Secretary to the Sri Lankan Treasury P B Jayasundera and Chinese Vice Minister of Commerce, Chen Jian, during the former's three-day official visit to China, a Sri Lankan foreign ministry statement said here.

Under this agreement, the Chinese government will provide funding for various projects including the country's second international airport at Mattala in the south-east.
An annual grant agreement was also signed with the Commerce Ministry of China to the value of USD 7 million.

"Jayasundera used the opportunity to apprise Vice Minister Chen Jian of the progress achieved by the Government of Sri Lanka in the fields of power, ports and highway," the statement said.

The Secretary to the Sri Lankan Treasury also briefed about new construction and development initiatives undertaken by the government.
The top bureaucrat said the Mahinda Rajapaksa government has accorded top priority to speed up construction efforts, especially of roads and railroads linking the North and South. This would contribute to improving living conditions and livelihood of the people in those provinces, he said.

The Chinese Vice Minister of Commerce said his country will provide further development assistance to improve the general living standards as well as to achieve a higher growth rate in Sri Lanka, the statement said.

The Sri Lankan delegation also held discussions with China's Finance Ministry and assessed the progress of ongoing projects with Chinese contractors.
In August this year, the EXIM Bank of China signed an agreement to provide USD 350 million worth of assistance for infrastructure projects in Sri Lanka.
This included a key facility of the strategic Hambantota Port in south-east Sri Lanka.
China has assured assistance to Sri Lanka in all post-war development projects, it said.