Govt. to resume diplomatic dialogue with Japan on LRT project

Cabinet Co-Spokesman and Minister Bandula Gunawardena 

• Cabinet nod to begin negotiations, mend strained relations caused by abrupt cancellation
• Cabinet Co-Spokesman and Minister Bandula Gunawardena says resumption of talks will boost bilateral cooperation, restart important infrastructure projects 
• Asserts LRT project resumption will help to draw up $ 2-3 b, which will be a boost for country’s economic recovery

By Charumini de Silva

The Cabinet of Ministers approved a proposal to initiate a diplomatic dialogue with Japan regarding the abruptly terminated light rail transit (LRT) project. 

The proposal to this effect submitted by President Ranil Wickremesinghe, aims to mend the strained relations caused by the project’s unilateral cancellation in 2020.  “The decision was taken mainly to boost bilateral relations with the Japanese Government which has been a strong development partner and to resume the LRT project that holds immense potential for Sri Lanka’s transportation infrastructure and economic development,” the Cabinet Co-Spokesman and Minister Bandula Gun-awardena explained at the post-Cabinet meeting media briefing yesterday.

He also said the resumption of the project will also help to draw up around $ 2-3 billion, which will be a major boost for the country’s economic recovery.

The Cabinet Co-Spokesman acknowledged that the abrupt cancellation of the project strained the bilateral relationship with the longstanding development partnership.

Gunawardena explained the decision to start diplomatic talks with the Japanese government when questioned why only the Presidential Secretariat was involved in the LRT discussions when there were no official statements made from the Japanese Government.

 “The decision to resume the diplomatic dialogue reflects Sri Lanka’s commitment to addressing past issues and fostering strong relationships with international partners. By engaging in discussions with the Japanese Government, the Government aims to find common ground and seek mutually beneficial solutions,” he added.

In September 2020, on the advice of former President Gotabaya Rajapaksa, Secretary to the President Dr. P. B. Jayasundera abruptly instructed the Transport Ministry Secretary to terminate the JICA-funded LRT as it was very costly and not the appropriate cost-effective transport solution for the urban Colombo transportation infrastructure. 

The proposed LRT service can complete the journey from Malabe to Colombo Fort within 30 minutes during peak hours and operate a train every 10 minutes during off-peak hours. As per a report compiled by the National Audit Office (NAO), Sri Lanka lost nearly Rs. 6 billion due to the previous Government’s unilateral cancellation of the LRR project, which was started with Japanese loan assistance to reduce traffic congestion in Colombo and provide a better transport service to passengers. 

The NAO has shown that the Government’s decision to terminate the LRT project in 2020 resulted in a waste of Rs. 10.6 billion. It also pointed out, at the time the Government decided to cancel the project, multiple parties had spent the above-mentioned amount. 

The Auditor-General has suggested that, while submitting its observations on the Cabinet Memoranda, the Treasury makes every effort to give impartial professional observations that go beyond supporting the actions requested by the Memoranda. These findings were presented in a special audit report on the Japanese light rail project produced by the Auditor General’s Department in November 2022.