LRT project cancellation shocked Japan

*Things started moving only after RW apologized and asked for support

Colombo, October 23 (Daily Mirror) - Outgoing Japanese Ambassador Mizukoshi Hideaki said the cancellation of the LRT (Light Rail Transit ) project during the time of former President Gotabaya Rajapaksa was typical case of ‘a very non-transparent decision’, and after that, it was difficult for him to secure assistance from Japan from Sri Lanka.

In an interview with Daily Mirror, he said that things started moving only when then President Ranil Wickremesinghe apologized about the cancellation and asked Japan for support.

“I think it's a typical case of a very non-transparent decision. I don't know who has gained from cancelling it. It is true that Sri Lanka unilaterally cancelled this project, which had been agreed by both the governments in 2019. It shocked the government of Japan, JICA and all the others involved, including the companies involved. Due to this very regrettable cancellation, I think Sri Lanka lost confidence, not only from Japan but also from other foreign countries,” he said.

He said that Japan officially decided to resume disbursement to 11 loan projects remained stalled due to the economic crisis.

“We have already disbursed 12.5 billion Japanese yen, which is about US $ 87 million by the end of September,” he said.

Commenting on the business environment, he said Sri Lanka has a very high potential of growth considering the strategic location in the Indian Ocean, but Sri Lanka needs improvement in creating a fair, credible, transparent business environment.

“It is a hub for 90 percent of global trade and 70 percent of petroleum transport in this region,” he said.

The outgoing ambassador said President Anura Kumara Dissanayake was elected with a mandate by the people to tackle the anti-corruption issues and this is an unprecedented opportunity for Sri Lanka to get rid of those old practices, and improve the business environment.