China has agreed to financially assist Sri Lanka with US$1.5 billion (S$1.86 billion) for several infrastructure projects within next three years.

China Development Bank Corporation has agreed to provide financial assistance in a sum of US$ 1.5 billion within 03 years for the construction of roads, bridges, water supply schemes and also for irrigation and power.

The Cabinet has approved a proposal submitted by President Mahinda Rajapaksa allowing the Ministry of Finance and Planning to sign a Memorandum of Understanding for the purpose with the China Development Bank Corporation.

The Chinese government is providing financial assistance to various mega projects in the country including the Norochcholai coal power plant, Southern port, and second airport in Hambantota.