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China Development Bank provides $200 million loan in 2019 to People’s Bank for on-lending activities
| Funder | China Development Bank (CDB) |
|---|---|
| Recipient Organization | People's Bank (Sri Lanka) |
| Country | Sri Lanka |
| Start Date | Mar 27, 2019 |
| End Date | Mar 22, 2033 |
| Duration | 5,109 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 91826 |
Grant Description
China Development Bank provides $200 million loan in 2019 to People’s Bank for on-lending activities On March 27, 2019, China Development Bank and People’s Bank of Sri Lanka signed a $200 million loan facility agreement to support on-lending activities.
The loan facility agreement was signed by Chief Executive Officer/General Manager of People’s Bank, N.
Vasantha Kumar, and CDB Guangxi Branch General Manager, Mei Shiwen, The signing ceremony was held at China Development Bank’s Guangxi Branch in Nanning, People’s Republic of China.
However, in October 2021, the Chinese Embassy in Sri Lanka blacklisted the People’s Bank of Sri Lanka for failing to honor its contractual obligations.
At the time, Chinese fertilizer enterprise Qingdao Seawin Biotech Group Co., Ltd requested payment of L/C from the People’s Bank of Sri Lanka according to the terms specified in a set of contracts.
However, disregarding its contractual obligations, business rules, and international trade customs, the People’s Bank of Sri Lanka defaulted on the payment of L/C, creating large financial losses for Qingdao Seawin Biotech Group Co., Ltd, according to the Chinese Embassy in Sri Lanka.
Staff Comments
1. People's Bank is a state-owned commercial bank in Sri Lanka
Sources & References
- The People's Bank of Sri Lanka and China Development Bank signed a bilateral financing cooperation agreement
- 斯里兰卡人民银行与中国国家开发银行签署双边融资合作协议
- People’s Bank signs landmark $ 200 m transaction with China Development Bank
- 斯里兰卡人民银行与中国国家开发银行签署双边融资合作协议
- People's Bank signs landmark $ 200 m transaction with China Development Bank
- Chinese embassy blacklists Sri Lanka's People's bank
- WION English News
- People’s Bank BLACKLISTED by Chinese Embassy 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.
All Grantees
People's Bank (Sri Lanka)
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