Accordingly, four proposals were received from international and domestic banks and
investment houses.
Through a strict evaluation and negotiation process by a Cabinetappointed Steering Committee and Technical Evaluation Committee, the China Development
Bank (CDB) was selected as the syndicate arranger based on least cost and longer maturityperiod given in its proposal submitted.
Consequently, the Government of Sri Lanka secured USD 1,000 million from CDB under theFCTFF with a maturity period of eight years. The interest cost is highly competitive andlinked to 6 Month USD LIBOR with a grace period of three years.
The repayment will be inequal semi-annual payments after the grace period. The resulting inflow increases the officialforeign reserves by USD 1,000 million.