South Korea Promises Loan Exchange to Sri Lanka in Line with IMF Agreement

By Leenah Wahab   

The Export and Import (Exim) Bank of South Korea has pledged to renew the framework agreement for loan projects at Sri Lanka in line with a commitment set by the IMF, at a meeting held yesterday.   

The Ambassador of the Republic of Korea, Miyon Lee, paid a courtesy visit to President Anura Kumara Dissanayake to discuss future cooperation in areas such as education, healthcare and climate change, alongside commitments to Sri Lanka’s debt restructuring and encouraging foreign investment from Korean companies, to bolster the country’s financial stability.   

According to recent media reports, Korea Exim bank announced its decision to resume Official Development Assistance (ODA) concessional loan projects to Sri Lanka, which involves resuming disbursements and signing loan agreements for all ongoing Economic Development Cooperation Fund (EDCF) projects. This paves the way for restoration of utility, healthcare and rural projects including the Bandaranaike International Airport Development Project and the Ruwanwella Water Supply Project.   

Furthermore, the meeting addressed Korea’s role in Sri Lanka’s digital transformation, climate initiatives and renewable energy projects. Ambassador Lee emphasised the support provided by Korean government agencies such as KOICA (Korea International Cooperation Agency), KOFIH (Korea Foundation for International Healthcare), and Saemaul Foundation, all of which are actively working on development projects in Sri Lanka.   

The ambassador also emphasised the need for transparent policies and efficient regulatory processes to attract foreign direct investment, thereby helping Sri Lanka’s economy grow further, as well as highlighting the Korean government’s commitment to deepen the relationship with Sri Lanka through various avenues such as education, healthcare and cultural exchanges.