Active Development AidData Chinese Aid

Chinese government provides 50 million RMB interest-free loan via Economic and Technical Cooperation Agreement for unspecified purposes (Linked to TUFF Record ID#33183 and ID#71571)

¥50M RMB

Funder	China Ministry of Commerce
Recipient Organization	Government of Sri Lanka
Country	Sri Lanka
Start Date	Jan 01, 2000
End Date	Feb 07, 2026
Duration	9,534 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`101650`

Grant Description

Chinese government provides 50 million RMB interest-free loan via Economic and Technical Cooperation Agreement for unspecified purposes In 2000, the Chinese government signed two Economic and Technical Cooperation Agreements (ETCA) with the Government of Sri Lanka providing interest-free loans, both for unspecified purposes when originally signed.

The first loan was valued at USD $2.2 million, or 20 million RMB (captured via TUFF Record ID#33183) and was wholly used for the National Performing Arts Theater Project in 2004 (captured via TUFF Record ID#71571).

The second was valued at USD $5.8 million, or 50 million RMB (captured via TUFF Record ID#101650) and was used for unknown purposes.

The 50 million RMB loan’s outstanding amount was LKR 647,100,000 (approximately RMB 30,811,640) as of December 31, 2013, LKR 528,502,500 (approximately RMB 24,935,265) as of December 31, 2014, LKR 443,708,000 (approximately RMB 20,498,659) as of December 31, 2015, RMB 15,000,000 as of December 31, 2016, RMB 10,000,000 as of December 31, 2017, RMB 5,000,000 as of December 31, 2018, and RMB 0 as of December 31, 2019.

The loan had disbursed LKR 552,860,000 (approximately RMB 34,295,462) as of December 31, 2008.

The borrower made repayments worth LKR 105,088,295 (approximately RMB 4,958,169) in 2014, LKR 107,700,00 (approximately RMB 4,975,582) in 2015, and CNY 5,000,000 each in 2016, 2017, 2018, and 2019.

📋 Staff Comments

Although no source explicitly identifies 50 million RMB as the face value of this loan, the transaction amount has been coded as 50 million RMB (instead of 5.8 million USD) for several reasons. Interest-free loans provided by MOFCOM via ETCAs are denominated in RMB. Additionally, under standard terms of a MOFCOM interest-free loan agreement, the borrower is to makes equal, annual principal payments during the loan’s repayment period. When known annual repayments are converted from LKR to RMB, each is about 5 million RMB. This indicates -- in conjunction with the 9.51-year repayment period identified in Hansard sources -- a 50 million RMB face value. Further, the value in USD reported in the Sri Lankan External Resources Department's 2000 Foreign Aid Review (5.8 million USD) was worth approximately 50 million RMB in 2000.
RMB per LKR exchange rates have been taken from the World Bank Group's Global Economic Monitor database (exact variable's name is 'Exchange rate, new LCU per USD extended backward, period average': 2008 = 0.064145, 2013 = 0.047615, 2014 = 0.047181, 2015 = 0.046199.
One of the largest public infrastructure projects financed by the Chinese Government in Sri Lanka during calendar year 2000 was the Lady Ridgeway Children's Hospital Redevelopment Project. It is unclear if this project was financed via MOFCOM grants, interest-free loans, or some combination of the two. This issue warrants further investigation4. The Government of Sri Lanka loan key number is 2000037

📚 Sources & References

China-Sri Lanka Relations in Infrastructure Development
Lady Ridgeway Hospital
戚振宏大使走访斯里兰卡最大儿童医院并捐赠药品
PARLIAMENTARY DEBATES (HANSARD)
FINANCIAL STATEMENTS OF THE GOVERNMENT FOR THE YEAR ENDED 31ST DECEMBER 2019
FINANCIAL STATEMENTS OF THE GOVERNMENT FOR THE YEAR ENDED 31ST DECEMBER 2018
Financial Statements 2015
Financial Statements 2014
Annual Report 2017
PARLIAMENTARY DEBATES (HANSARD) Friday, 20th March, 2009
FOREIGN AID REVIEW SRI LANKA
FINANCIAL STATEMENTS OF THE GOVERNMENT FOR THE YEAR ENDED 31 ST DECEMBER 2020 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.