The Japanese Government has officially notified Sri Lanka of its decision to resume disbursement to Yen Loan Projects that were previously suspended since the default of Sri Lanka in 2022.
The decision has been taken following the completion of the signing of the agreement between the Official Creditor Committee (OCC) and Sri Lanka on Tuesday (July 23) and the expression of willingness by the Government of Sri Lanka to conclude a bilateral agreement on debt restructuring swiftly.
A press conference was held at the Ministry of Treasury yesterday jointly with the Government of Sri Lanka, the Embassy of Japan, and the Japan International Cooperation Agency (JICA) to officially announce the resumption of Yen Loan Projects in Sri Lanka.
Addressing the media, Japanese Ambassador MIZUKOSHI Hideki said all the suspended Yen Loan projects are crucial infrastructures that promote Sri Lanka’s economic growth.
He further commended Sri Lankan authorities for their ongoing efforts in implementing the comprehensive economic and social reforms essential to guiding the country back to a sustainable path.
Japanese Ambassador MIZUKOSHI Hideki also reaffirmed Japan’s continuous and unwavering commitment to supporting Sri Lanka.
Also addressing the media, the Chief Representative of the JICA Sri Lanka office, IDE Yuri expressed hope that the resumption of Yen Loan projects will contribute to stabilizing the economy and society of Sri Lanka.
Yuri further expressed hope that it will also help gain momentum toward long-term sustainable growth, thus paving the way for Sri Lanka to recover trust and confidence from the people and private businesses of both Sri Lanka and the world.
“JICA with discussions with the Government of Japan has decided to promptly resume the disbursement and other operations of their ODA loan projects without waiting for the amendment of each relevant agreement. This decision was made to restart and drive forward the delayed ODA loan projects at the earliest possible speed. Projects such as the expansion of the Katunayake Airport, digitalization of Terrestrial TV Broadcasting, expansion of power transmission lines, construction of water supply and treatment facilities, and improvement of the medical facilities,” Yuri added.
Meanwhile, Treasury Secretary Mahinda Siriwardana expressed his sincere gratitude on behalf of the Government of Sri Lanka to the Government of Japan for their pivotal role throughout the debt treatment process and for being the foremost decision taker to refinance the ongoing infrastructure development projects. (Newswire)