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Sri Lanka signed up for Rs. 26.1 bn worth of concessional aid from Japan to promote economic stabilization and development, the Finance Ministry said Wednesday. The loans will carry a concessional annual interest rate of 0.
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75 percent to be repaid over a 40 year period.
"The interest rate has been reduced from the normal applicable rate of 1.5 percent in accordance with a new preferential scheme for peace building adopted by the government of Japan," the statement said.
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Close to half of the funds will be allocated for upgrading hospitals and schools, with the rest spent on developing the small-scale industry and as credit to companies to reduce environmental pollution.
-LBO Newsdesk: LBOEmail@vanguardlanka.com