03 Jul, 201307:07:55
July 03, 2013 (LBO) - China has given 165.28 million US dollars for projects financed in Sri Lanka in the first four month of 2013, though Japan has committed more new funding in the period, official data show.
The World Bank has disbursed 95.7 million US dollars (0.84 million in grants) in the period, coming behind China, out of a total of 580.7 million US dollars, a fiscal report showed. Japan had disbursed 89.43 million US dollars (including 1.6 million in grants), India 77.02 million US dollars, the Asian Development Bank 63.77 million US dollars (0.45 million in grants) and Iran 25.34 million US dollars. Japan has been Sri Lanka's largest lender from the early 1980s. China became a large lender from around 2005. Japan has recently ratcheted up lending for projects and has also expressed willingness to finance an urban metro. After about a lapse of 10 years Sri Lanka has also sought Japanese finance for a coal power plant. Out of 1,027 million US dollars in new commitments made Japan has committed 457.3 million US dollars including 28.3 million US dollars in grants and China 354.5 million US dollars with no grants. The World Bank has disbursed 95.7 million US dollars (0.84 million in grants) in the period, coming behind China, out of a total of 580.7 million US dollars, a fiscal report showed. Japan had disbursed 89.43 million US dollars (including 1.6 million in grants), India 77.02 million US dollars, the Asian Development Bank 63.77 million US dollars (0.45 million in grants) and Iran 25.34 million US dollars. Japan has been Sri Lanka's largest lender from the early 1980s. China became a large lender from around 2005. Japan has recently ratcheted up lending for projects and has also expressed willingness to finance an urban metro. After about a lapse of 10 years Sri Lanka has also sought Japanese finance for a coal power plant. Out of 1,027 million US dollars in new commitments made Japan has committed 457.3 million US dollars including 28.3 million US dollars in grants and China 354.5 million US dollars with no grants. Hungary has committed 45.8 million US dollars, United Kingdom 43.6 million US dollars, the Asian Development Bank 40.1 million US dollars, The Netherlands 32.6 million US dollars and Spain 29.4 million US dollars. China and many European countries are now giving export import credit to Sri Lanka at near market rates. China has been exporting not only raw materials but also labour under export financing giving 'stimulus' to the domestic economy. Countries that use tied foreign aid can generate 'stimulus' in the domestic economy without increasing their net debt or debt servicing cost though gross debt may still go up. China's Exim Bank has been partly funded from foreign reserve transfers that would otherwise have gone to US Treasuries. Update II/Corrected- new commitments total 1,027 million US dollars