Chinese loan and currency swap arrangement on the way

China will endorse a US $ 500 million loan and a currency swap arrangement of two billion Yuan (around US $ 600 million) within the next couple of weeks, informed sources said.

Sri Lankan ambassador to China Dr. Palitha Kohona held talks with Chinese Vice Foreign Minister Luo Zhaohui on Wednesday and discussed bilateral cooperation covering a wide range of areas. Sri Lanka has sought financial cooperation from China.

Mr. Luo oversees China’s relations in the Asian region. According to a sources, the US $ 500 million is to be approved by the Bank of China within the next two weeks. Besides, the currency swap facility will be approved by People’s Bank of China which is the central bank of that country.

China also asserted once again that it would stand by Sri Lanka at the United Nations Human Rights Council (UNHRC).

Also, Dr, Kohona and the Vice Minister discussed the expedition of the Free Trade Agreement (FTA) between the two countries. The FTA negotiations were launched during the 2010/2015 government led by Mahinda Rajapaksa as the then president.

The previous Yahapalana government also made arrangements to proceed with the talks.(DM/KELUM BANDARA)

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