China has loaned 290 million dollars to the Sri Lankan government to build an airport and expand the island's railway network, the foreign ministry in Colombo said on Wednesday.
The Export-Import Bank of China loaned 190 million dollars to construct a second international airport in Sri Lanka's south and 100 million dollars to develop the island's railways.
China, which is a key military and political ally of Sri Lanka, loaned the island 1.2 billion dollars in 2009 to build roads and a coal-fired power station.
Beijing helped block a UN resolution censuring Sri Lanka for its handling of the final stages of the war against the Tamil Tiger rebels last year and is one of the leading suppliers of small arms to the South Asian nation.
The loan agreement was signed in Beijing last week and the two countries also discussed more funding for highways in the island's war-ravaged Jaffna peninsula, the foreign ministry said in a statement.
Copyright 2010 AFP South Asian Edition
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