Sri Lanka receives US $ 500mn concessional loan from Korea

• Funds will be utilised for projects mutually agreed by both countries
• Loan interest rate at 0.15%-0.20%
• Has a repayment period of 40 years with a grace period of 10 years

In order to further strengthen the economic cooperation between the two countries, the Government of Republic of Korea has agreed to provide a concessional loan from the Economic Development Cooperation Fund (EDCF) of the Export Import Bank of Korea (KEximbank). 

Accordingly, the Government of Republic of Korea and Government of Sri Lanka have agreed to sign a new Framework Arrangement for the period of 2020-2022, to obtain loans through the EDCF up to an aggregate commitment amount of US $ 500 million, to finance projects mutually agreed. 

The loan interest rate on this concessional loan is about as low as 0.15%-0.20% and the loan has a repayment period of about 40 years, with a grace period of 10 years. 

In addition, the two sides agreed to continue the Korean Exim Bank Representative Office, which was opened in Colombo in January 2016 by its Chairman, to further implement the projects in a well-coordinated manner. 

The Framework Arrangement was signed yesterday (May 10, 2021) by Finance Ministry Secretary S.R. Attygalle, on behalf of the Government of Sri Lanka and Republic of Korea Ambassador Woonjin Jeong, representing the Republic of Korea.