US$410m Chinese funding for Lankan projects

Three framework agreements amounting to US$ 410 million were signed between Treasury Secretary Dr P.B. Jayasundera and China’s Vice Minister of Commerce Chen Jian Wednesday under which the Chinese Government will provide confessional funding for several projects in Sri Lanka, including the second international airport at Mattala.

The framework agreements were signed during a three day official visit to China undertaken by the Treasury Secretary.

An annual granting agreement was also signed with China’s Commerce Ministry to the value of US$ 7 million during this visit.

Dr Jayasundra apprised Vice Minister Chen Jian of the progress achieved by Government in the field of power.

He also apprised him on the progress achieved in the fields of ports and highways as well as new construction and development initiatives undertaken by the Government, particularly in the Northern and Eastern regions.

He briefed Chinese officials that it is the government’s intention to speed up reconstruction efforts, especially the construction of roads and rail roads, to link the North and South which would contribute to improving the living conditions and livelihoods of the people in those provinces.

The Vice minister of Commerce indicated further development assistance to improve the general living standards as well as to achieve a higher growth rate in Sri Lanka.

The Sri Lankan delegation also held discussions with China’s Finance Ministry officials and assessed the progress of ongoing projects with Chinese Contractors.