China has become Sri Lanka’s top bilateral lender up to September 2010, displacing Japan.
Sri Lanka has racked up 2,481 million US dollars in bi-lateral and multi-lateral financing up to September 2010, the highest ever volume of foreign financing commitments, with China leading the way with 668 million US dollars of export credits. According to finance ministry data this year China has displaced Japan, the traditional top lender in both commitments and disbursements, up to September 2010. But China’s credits were dwarfed by international capital markets this year, with the government raising one billion dollars through a 10-year bond, largely for debt repayment in October. Japan came in second with a commitment of 424.3 million US dollars including 27.7 million US dollars of grants, the Asian Development Bank came third with 369.7 million US dollars and Russia came in fourth place with a 300 million US dollar credit line. World Bank had committed 217.8 million US dollars. Iran had committed 111.2 million US dollars in export credits and Australia 105.2 million US dollars.