Sri Lanka said on Tuesday that it has secured a $500mn loan from South Korea. The government said that South Korea agreed to provide the loan at a concessional interest rate of 0.15%-0.20%, repayable over 40 years with a 10Y grace period. This comes a month after a $500mn loan from China Development Bank and follows the island nation’s $1.5bn currency swap with China in late March amid its shrinking FX reserves from $7bn to $3.6bn over the course of a year and rising debt payments. Sri Lanka’s dollar bonds rose over 2-3% on the back of the news.

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