President secures more loans from South Korea
Following the visit of President Mahinda Rajapaksa to South Korea recently, a memorandum of understanding (MOU) has been signed between the two countries for further development aid for Sri Lanka.
The official press release from the South Korean government reads as follows:
‘An MOU (memorandum of understanding) between Korea and Sri Lanka has been signed to provide
US$200 million through the EDCF* (Economic Development Cooperation Fund) to Sri Lanka
between 2013 – 2015 to support Sri Lanka’s national projects.
* EDCF: A Korean government fund founded in 1987 to help developing countries with their industrial
development and economic stability
The MOU is on the request of Sri Lanka and is not the first of its kind. The two countries are currently on another EDCF MOU of US$200 million, according to which the support started in 2009 and will have completed in 2012.
Sri Lanka is the 4th largest recipient of the EDCF, with US$4.6 million of the fund spent on 22 national
projects, composed mostly of building infrastructure and establishing social safety nets. Sri Lanka is
now on a 10 year development plan which began in 2006 and will last through 2016, and one of the
most active participants of Korea’s KSP (Knowledge Sharing Program).
Today’s MOU on EDCF is expected to speed up economic cooperation between the two countries, as
Sri Lanka is able to estimate the size of future support from Korea, which will help the country plan
future development, and Korea can offer more opportunities to its enterprises to participate in Sri Lanka’s national projects.