The cabinet has granted approval to obtain a 600 million US dollar loan from China for the construction of the 2nd phase of the Hambantota harbour.
President Mahinda Rajapakse has presented the relevant cabinet paper and the loan is expected to be obtained from the Chinese Import Export Bank and the agreement will be signed in the future.
Meanwhile cabinet approval has been granted to obtain a loan from China to build railway lines from Matara to Beliatta in the project to extend the railway lines till Kataragama.
The loan, amounting to 278 million US dollars, is expected to be issued by the Chinese Import Export Bank.
In addition, the cabinet has granted approval to increase the monthly allowance of teaching assistants from 3000 rupees to 6000 rupees.
Minister Bandula Gunawardena presented the relevant cabinet paper.