Korea resumes ODA concessional loan projects in Sri Lanka

Wednesday, 31 July 2024 00:34 - - {{hitsCtrl.values.hits}}

The Export-Import Bank of Korea (Korea Eximbank) yesterday officially notified Sri Lanka’s Ministry of Finance, Economic Stabilisation and National Policies of its decision to resume EDCF Official Development Assistance (ODA) concessional loan projects in Sri Lanka.

The resumption comes after the Official Creditor Committee (OCC) and Sri Lanka finalised the Memorandum of Understanding (MOU) on 26 June 2024.

This decision includes resuming disbursements, signing loan agreements, and moving forward with the bidding process for all ongoing Economic Development Cooperation Fund (EDCF) projects in Sri Lanka.

Korea Eximbank said this resumption will facilitate the restart of disbursements for construction projects already underway, including the Ruwanwella Water Supply Project. This move marks a significant step in strengthening the longstanding ties between the Republic of Korea and Sri Lanka. It is expected to contribute towards the recovery and stabilisation of Sri Lanka’s economy while promoting sustainable growth.

The Economic Development Cooperation Fund (EDCF) is a Korean Government fund established in 1987 in order to support the industrial development and economic stabilisation of partner countries and promote economic cooperation with Korea. The Korean Government entrusts Korea Eximbank with the operation and management of EDCF. Since 1990, EDCF has authorised nearly $ 1 billion for 30 development projects in Sri Lanka.