The
Government borrows amounts in foreign currencies
to fund the development of SLTL’s network. These
amounts have been re-lent to SLTL with shorter repayment
periods than the underlying loan. The loan balance
as at 31 December 1999 is Rs. 10,646 million (1998
- Rs. 8,683 million).
One
loan was fixed in Sri Lanka Rupees at the exchange
rate on the date of incorporation of SLTL or on
the draw down dates of the loan facility, as appropriate.
Accordingly the exchange losses on this loan are
borne by the Government of Sri Lanka. The interest
rates were fixed at 13% per annum. The liability
as at 31 December 1999 is Rs. 772 million (1998
- Rs. 1,158 million).
SLTL
bears the foreign exchange risk and the related
costs on a loan, bearing interest at 10% per annum.
The balance as at 31 December 1999 is Rs. 2,717
million (1998 - Rs. 2,903 million).
Certain
Government re-lent loans amounting to Rs. 3,780
million (1998 - Rs. 4,143 million) have been granted
on condition that at least 25%-30% of the average
capital expenditure on the related projects is funded
from funds generated internally.
|