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China to loan Sri Lanka $290 mln for airport, railways
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Colombo News Desk CND on 10 March, 2010 04:15:00
 
China will provide a $190 million loan through its funding arm, Exim Bank, to
construct the island's second airport and $100 million to boost the capacity of
the Sri Lankan railway, the ministry said in a statement.
China was the largest foreign funding source for Sri Lanka in 2009 with $1.2
billion followed by the Asian Development Bank with $424 million.
In a statement, Sri Lanka's ministry of finance on Wednesday said India had
agreed to provide a $67.4 million loan under a supplementary credit line to
upgrade its southern railway line.
China and India are increasingly competing for lucrative and strategic
investments in Sri Lanka since the end of its 25-year civl war in May last year.
Both India and China provided military assistance, including ammunition, in the
final phase of the war.