LRT Project: Japanese embassy says Project loans depend on debt restructuring

In response to a query about the restart of the Japan-financed Light Rail Transit (LRT) project, the Japanese embassy in Colombo said the resumption of loan projects and the launch of a new loan project will depend on the progress of the debt restructuring process.

The Sri Lankan Cabinet gave approval this week to proceed with the resumption of the US $ 2.2 billion LRT project to be financed by Japan International Cooperation Agency (JICA).

The line is to be constructed linking Malambe with Colombo Fort. The project was launched during the time of the previous Yahapalana government. However, in September, 2020, the Gotabaya Rajapaksa government scrapped the project.

During the recent visit to Japan, President Ranil Wickremesinghe sought to resume the project.

Responding to a query posed by Daily Mirror in this regard, the Japanese embassy said it is important for Sri Lanka to proceed with the debt restructuring process with all the creditors in a transparent, equal manner.

The embassy said Japan will see how to resume loan projects and start new loan projects while keeping an eye on the debt restructuring process. (Kelum Bandara)