Japan to consider new projects only after considering their economic status only: Embassy

Colombo, November 30 (Daily Mirror) -  Japan will consider new projects in Sri Lanka only after examining any request from the Sri Lankan authorities and its economic status first, the Japanese Embassy said yesterday.

The embassy said its priority is to carry out 11 projects that were resumed after debt restructuring. The embassy was responding to a question whether Japan had pledged new projects after the new government was formed.

Asked about the status of 11 ongoing projects, the embassy said most of them, including the Bandaranaike International Airport expansion project, are in progress smoothly.

The other Japanese-funded projects are: Kalu Ganga Water Supply Expansion Project, Anuradhapura North Water Supply Project, Kalu Ganga Water Supply Expansion Project, Kandy City Wastewater Management Project, Project for Formulation of Western Province Solid Waste Management Master Plan, Project on Capacity Development for Urban Planning, Water Engineering and Utility Management Future Leaders Training Programme, the Project for Human Resource Development Scholarship, Project for Capacity Development on Effective Public Investment Management, Digitalisation of Terrestrial TV Broadcasting Project and a programme for development support of fishing and agrarian villages/Dairy Development Project in Northern Province in Sri Lanka.

Following the completion of the signing of the Memorandum of Understanding (MoU) by all Official Creditor Committee members on July 22, 2024, Japan officially decided to resume disbursement to 11 loan projects. Japan disbursed 12.5 billion Japanese yen, which is about US $ 87 million by the end of September.

Japan played an important role in restructuring Sri Lanka’s bilateral debts and in the facilitation of restructuring International Sovereign Bonds.

Japan took the lead in organising the Official Creditor Committee for the negotiation of the debt restructuring.

In response to Sri Lanka’s economic crisis, Japan provided emergency humanitarian aid, including food and medicine, amounting to approximately U.S. 100 million in grants- the largest amount of annual support Japan has ever given. On the other hand, the past three years were not just about economic crises and challenges.