Russia will give $300 million arms loan to Sri Lanka

Russia will give Sri Lanka a $300 million loan to buy arms and dual use equipment from it, an agreement regarding which will be inked during the upcoming visit of president Mahinda Rajapaksa, a top official said today.

Rajapaksa is arriving in Moscow tomorrow, according to Kremlin. "Such agreement is being prepared for signing," deputy finance minister Dmitry Pankin said. President Dmitry Medvedev is scheduled to hold talks with his Sri Lankan counterpart on Monday.

Rajapaksa will be on a three-day visit to attend the Golden Jubilee celebrations of his alma mater - Peoples Friendship University of Russia (PFU), till 1991 known as Patrice Lumumba Friendship University.

Russia will give Sri Lanka a $300 million loan to buy Russia arms and dual use equipment for its armed forces, Ria Novosti reported.

Moscow had backed Colombo in its combat against LTTE in spite of massive international criticism and during his Sri Lanka visit in October last Russian foreign minister Sergei Lavrov had offered military assistance to the island nation.