Sri Lanka will get $ 500 million in the form of concessional loans from South Korea, reported Colombopage. The two countries have signed a framework agreement for a period of two years. 

The loans will be provided by the Economic Development Cooperation Fund of the Export-Import Bank of Korea, and would further deepen the economic ties between Sri Lanka and South Korea, Sri Lanka’s Ministry of Finance announced on Monday in a statement. 

The interest rate on loans will be as low as 0.15 percent to 0.20 percent. The repayment period is forty years. In addition to the agreement, Korea’s Exim bank will coordinate various projects in the island nations. 

The bank had opened its branch in Sri Lanka in 2016 and has been involved in financing many projects since.