Sri Lanka seeks Chinese AIIB support to boost state banks dollar liquidity

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Sri Lanka has sought US$ 100 M forex liquidity support for state banks from China’s Asia Infrastructure Investment Bank, during an online meeting with the lenders Chairman Ji Liqun, the Finance Ministry said.

President of the Asian Infrastructure Investment Bank (AIIB)  Ji Liqun and the Senior Management of AIIB met with Finance Minister M.U.M Ali Sabry, PC virtually over Zoom this Friday.

Sri Lanka’s ambassador to the People’s Republic of China Dr. Palitha Kohona and Secretary to the Treasury  Mahinda Siriwardena along with Finance Ministry officials also took part in the meeting. A discussion was held on the current areas of cooperation and also the managing of the present situation.

At the outset Liqun reiterated AIIB’s commitment to support Sri Lanka and stated that he was confident Sri Lanka will overcome the current issues that it is facing.

 A discussion was held regarding immediate emergency support to Sri Lanka and Liqun stated that in AIIB was considering the granting of USD 100 million to Sri Lanka in principle and he will discuss it further with the Board.

A discussion was also held regarding medium to long term support to Sri Lanka. Minister Ali Sabry discussed the need for FOREX liquidity support for the state banks of Sri Lanka and requested if such can be provided by AIIB.

Liqun assured that AIIB will continue to work with Sri Lanka and support Sri Lanka in overcoming its present issues.