Economic Crisis in Sri Lanka-China’s Exim Bank suspends a loan to Sri Lanka

China’s Exim Bank has suspended a US$51 million loan required for the construction of the first phase of the Central Expressway.

 Due to the current economic crisis in Sri Lanka, the release of money from China’s Exim Bank has been suspended and due to this, the government has faced a crisis regarding the project.

The fact that Sri Lanka has decided to suspend the repayment of foreign debt has also influenced China’s decision.

Around 500 Chinese nationals who worked on the 37 km project between Kadawatha and Mirigama have started leaving and as a result around 2000 jobs of residents have been put at risk.

Construction of the project began in September 2020 and is targeted for completion by the end of 2024.

So far, about 32 per cent of the project has been completed with about 33 billion rupees from the Sri Lankan government.