AIIB lends $180M to Sri Lanka
By Paneetha Ameresekere
Beijing based Asian Infrastructure Investment Bank (AIIB) has approved a USD 180 million loan to Sri Lanka to fight the COVID-19 Pandemic, its website said on Thursday (25).
The loan which will be guaranteed by the Sri Lanka Government, will be sourced though the Bank of Ceylon (BOC) and People’s Bank (PB) to address the urgent need for liquidity by providing credit to corporates and small and medium-sized private enterprises (SMEs), AIIB said.
These SMEs are facing short-term funding challenges due to the outbreak of the COVID-19 pandemic and the continued provision of credit is necessary to support the productive capacity of the country, it added.
BOC and PB will on-lend the proceeds to corporates and SMEs in the form of short-term working capital loans. Sri Lanka will be the guarantor of the loans.
This project will be processed under the AIIB’s COVID-19 Recovery Facility (CRF), a framework designed to assist members in responding to the COVID-19 pandemic, AIIB further said.