"These funds are to be used for infrastructure development," Peiris said.
"This is a matter of high priority for Sri Lanka now," he told a news conference, referring to the revival in tourism following the end of the 30-year ethnic war in May 2009.
The World Bank loan is interest free and repayable in 20 years with a 10-year grace period.
Peiris also said Korea's Export-Import Bank was giving another loan of 40 million dollars to upgrade a road connecting the hill-country towns of Hatton and Nuwara Eliya.
The bank is charging only a 0.1 percent interest a year and the loan is repayable in 40 years, including a 10-year grace period.
"With the end of terrorism, large funds are coming from abroad," Peiris said. "It shows the confidence investors have in us.
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In 2009 China gave 294 million dollars, Japan 311 million dollars, the Asian Development Bank 283 million dollars and the World Bank 202 million dollars, he said.