South Korea today announced that it will provide Sri Lanka with US$200 million in development loans that can be used for future infrastructure building by the South Asian country, the South Korean finance ministry said Tuesday.

Under the memorandum of understanding, the money to come from South Korea’s Economic Development Cooperation Fund (EDCF) will be used in various agricultural and public work projects as well as education and health-related programs, it said.

Meanwhile, South Korean President Lee Myung-bak and Sri Lankan President Mahinda Rajapaksa held a summit in Seoul Tuesday to discuss ways to strengthen economic and other cooperation between the two countries.

During the summit, Lee said that Sri Lanka’s economy has grown steadily and its political situation stabilized due to Rajapaksa’s leadership. He also thanked Sri Lanka for sending a pair of elephants two years ago as a token of friendship between the two countries.

“In particular, more than 20,000 Sri Lankan workers are contributing to the economy of South Korea and they are beloved by South Korean businessmen,” Lee said during the summit, referring to migrant workers from the South Asian nation, according to South Korea’s (Yonhap) news agency. (QNA)