Sri Lanka is considering an offer from Bank of China for a loan of $300 million, which could be raised to $1 billion, to help it meet repayments in coming months, junior finance minister Eran Wickramaratne told Reuters on Tuesday. He also confirmed that Sri Lanka had started negotiations to increase the amount of a swap deal with India’s central bank to $1 billion, up from a previously negotiated $400 million. Last Sunday, The Sunday Morning reported  that China has offered more funds to Sri Lanka to help stabilise the Sri Lankan economy. Finance Ministry sources said that China expressed willingness to offer funding through mutually beneficial projects. When The Sunday Morning contacted the Chinese Embassy in Colombo, the Embassy Spokesman did not respond directly to the question posed. However, Spokesperson and Chief of the Political Section at the Chinese Embassy Luo Chong said that China always stands ready to support Sri Lanka. “As you know, China is always a strong supporter and partner for Sri Lanka’s development, while all financial assistance should be requested by Sri Lanka and not proposed by China,” Chong said. Chong also said that legislation of any project in Sri Lanka would only be decided by the Sri Lankan Government. Just last week, the Minister of Finance and Mass Media Mangala Samaraweera met with the Chinese Ambassador to Sri Lanka Cheng Xueyuan and a Chinese delegation at the Treasury. The Minister apprised the Chinese Ambassador about the Sri Lankan Government’s plan to re-engage with the International Monetary Fund (IMF) and thanked the Chinese Government for their continued support extended to Sri Lanka. Chinese Ambassador Cheng Xueyuan reiterated his countries support to the development of the Sri Lankan economy and pledged their support in Sri Lanka’s efforts to re-engage the IMF in a sustainable manner. Over the past few weeks, Chinese officials have met the Sri Lankan Government at various levels and discussed cooperation in various sectors. Also, last week, Prime Minister Ranil Wickremesinghe told Parliament that Sri Lanka was looking to raise $ 500 million through Panda bonds in China and Samurai bonds in Japan.