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China to fund infrastructure in Sri Lanka

(Xinhua) Updated: 2012-09-14 10:02

COLOMBO -- The Chinese government is giving $240 million in loans to build infrastructure in southern Sri Lanka, an official said on Thursday.

China's Exim Bank is financing the construction of flyovers and roads in the southern town of Hambantota with the aim of making it a transport hub, Cabinet spokesman and Media Minister Keheliya Rambukwella told a news conference.

"The Cabinet on Wednesday approved the project. The construction will be done by China State Construction Engineering Corporation Limited with the Sri Lankan government making up the rest of the cost for the $303 million venture," he said.

The town is well known as President Mahinda Rajapaksa's vote base and has been responsible for allowing several family members, the latest being his son, to be elected into parliament.

In addition for the 2011 cricket World Cup, Hambantaota received a brand new stadium costing an estimated $7.89 million. Expansion of highway and railway projects to include Hambantota are also in the pipeline.

China is already funding a $361 million port, a $209 million airport and several other infrastructure projects in Hambantota.

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