Japan to resume ODA projects with BIA expansion

Friday, 28 June 2024 00:30 - - {{hitsCtrl.values.hits}}

Japan’s Acting Ambassador Katsuki Kotaro addresses the inauguration of the Asia Logistics Forum yesterday – Pic by Upul Abayasekara

Acting Ambassador Katsuki Kotaro describes signing of MOUs with the Official Creditors Committee and China EXIM Bank as a “significant milestone”
Says outcome puts “healthy” pressure on commercial creditors to conclude their negotiations
Reiterates Japan’s commitment to continue to support Sri Lanka

Japan yesterday expressed hope to resume its Overseas Development Assistance (ODA) inspired projects with the expansion of the Bandaranaike International Airport (BIA) following Sri Lanka’s successful conclusion of the MOUs with official creditors on Wednesday.

Japan’s Acting Ambassa-dor Katsuki Kotaro described the signing of MOUs with the Official Creditors Committee (OCC) and China EXIM Bank as a “significant milestone” considering the economic difficulties experienced in 2022. Japan’s outstanding debt stock on Sri Lanka at the end of 2023 was $ 2.67 billion accounting for 2.7% of the total.

He also said the outcome puts “healthy” pressure on commercial creditors to conclude their negotiations with Sri Lanka under the broader external debt restructuring.

“An early conclusion of this exercise will enable Sri Lanka to exit the default status and access international financial markets once again,” he added.

“Following the halting of Yen loan projects in May 2022, Japan will resume Yen loan funded projects starting with the BIA expansion which will impact positively to the growth of passenger tourism and cargo freight traffic in Sri Lanka,” Japan’s Acting Ambassador Kotaro Katsuki told the inauguration of the Asia Logistics Forum in Colombo yesterday. Japan is expected to re-tender the BIA expansion project once formalities are finalised.

Kotaro also said strategic geographic location favours Sri Lanka in its quest to become a maritime and aviation hub in the South Asian region.

“Japan is committed to continue to support Sri Lanka including the development of logistics,” said Kotaro adding that in the past Japan via Japan International Cooperation Agency (JICA) funding has helped to develop the Port of Colombo. He said that given the enormous economy in neighbouring India, and prospects with Bay of Bengal countries, South Asia as well as West Africa, Colombo has great potential to further boost transshipment container business.

Kotaro also said of late there has been growing interest in Sri Lanka from Japanese businesses with multiple visits with some keen on being part of the logistics industry of Sri Lanka.

“Going forward, there are challenging times and also many opportunities in Sri Lanka and Japan will be taking an active part in this discussion,” emphasised Kotaro.

At the Asia Logistics Forum, Iconiq Events in collaboration with Gensoft Ltd., and support from Hayleys Advantis dealt with a wide range of logistics-related topics involving an impressive lineup of global and local experts.