Japan to resume suspended projects in Sri Lanka

Colombo, July 24 (Daily Mirror)- The Government of Japan has officially decided to resume disbursement to Yen loan projects, which have been suspended since Sri Lanka's default in 2022.

The decision has been taken following the completion of the signing of a Memorandum of Understanding (MOU) between the Official Creditor Committee (OCC) and Sri Lanka on 23 July and the expression of the willingness by the Government of Sri Lanka to swiftly conclude a bilateral agreement on debt restructuring.

The Government of Sri Lanka, the Embassy of Japan and Japan International Cooperation Agency (JICA) Sri Lanka Office held a joint media conference to inaugurate this milestone decision at the Ministry of Finance on 24 July.

While congratulating the completion of the MOU on debt restructuring between Sri Lanka and the OCC, Ambassador Mizukoshi Hideaki highlighted the unprecedented
initiative and outstanding contribution by the Government of Japan, as a co-chair of the OCC, in leading and concluding the public debt restructuring.

Ambassador  Mizukoshi also commended Sri Lankan authorities for their ongoing efforts in implementing the comprehensive economic and social reforms essential to guide the country back to a sustainable path.

He stated that all the suspended Yen loan projects are crucial infrastructures that promote Sri Lanka’s economic growth and further reaffirmed Japan’s continuous and unwavering commitment to supporting Sri Lanka.

Ms. Ide Yuri expressed her hope that the resumption of Yen Loan Projects will contribute to stabilizing the economy and society of Sri Lanka and 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.

It is hoped that the resumption of disbursement to Yen Loan Projects would further strengthen the bond between Japan and Sri Lanka, as well as help this island nation bring itself back on track for further economic development, serving as a hub in the Indian Ocean.