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Bank of China offers $300 million loan to Sri Lanka

Key Points
  • Bank of China has offered a loan of $300 million — which can be raised to $1 billion — to Sri Lanka, a source in Colombo said on Thursday.
  • The Sri Lankan government is considering the offer because of "difficulty in borrowing money after recent ratings downgrades", the source added.
People wait outside a Bank of China branch in Beijing on July 11, 2014.
GREG BAKER | AFP | Getty Images

Bank of China, the country's fourth-biggest lender by assets, has offered a loan of $300 million to Sri Lanka which can be raised to $1 billion, a source in Colombo with direct knowledge of the matter, told Reuters on Tuesday.

The government is considering the offer because of "difficulty in borrowing money after recent ratings downgrades," the source said, declining to be named as the information was not public.

Reuters could not immediately reach Sri Lanka's Ministry of Finance and the Bank of China.

Sri Lanka, an island nation off India's southeastern coast, is struggling to repay its foreign loans, with a record $5.9 billion due this year including $2.6 billion in the first three months alone.