China to lend Sri Lanka US$ 580m


india-sri-chinaChina Development Bank (CDB) Corporation will lend US$580 million (S$732 million) to Sri Lanka to help implement key infrastructure projects, a government document released on Wednesday showed, according to a Reuters news agency report.

The loan will bring CDB’s total lending to Sri Lanka to more than US$1.4 billion. China’s increasing influence in the island nation has stoked concerns in neighbouring India.

According to the document, US$300 million of the loan will be spent on developing roads and US$200 million on water supply projects, with the rest going to the national business school.

It said CDB had already extended US$652 million for road development projects and US$214 million for an irrigation project.