Japan reaffirms support to Sri Lanka; cumulative funding tops Rs. 1 trillion

Japan has reaffirmed support to historically-friendly Sri Lanka via its 43rd assistance package concluded last week, bringing the cumulative funding to a mammoth Rs. 1.15 trillion.

The assistance through the Japan International Cooperation Agency (JICA), and previously inclusive of Japan Bank for International Cooperation (JBIC), is since the first Overseas Loan Program, which began in 1978.

The 43rd loan package was inked last week during President Mahinda Rajapaksa’s state visit to Tokyo, with Japan committing Rs. 53.2 billion or Japanese Yen 41.1 billion.  

With the latest expression of support, JICA officials yesterday told the media that JICA’s total committed cumulative loan value to Sri Lanka reached Yen 889 billion or Rs. 1.151 trillion. This is via 110 project loans and 15 commodity loans at very concessionary terms.

The 41st loan package assistance committed during the previous two years ranged between Yen 33 and 49 billion. Of the assistance provided, Sri Lanka has paid back Yen 557 billion with the balance outstanding being approximately Yen 337 billion.

JICA Chief Representative A.O. Harumi indicated that continuous support by Japan for Sri Lanka arises out of the strong cultural and political ties between the two countries spanning many decades. JICA itself has had extended support for 52 years via ODA, grant aid, and technical assistance.

Harumi said JICA support for Sri Lanka is focused on five principles – reconstruction and development of conflict-affected areas, development of infrastructure for economic growth, reducing regional disparities, disaster management, and climate change mitigation and volunteers.

JICA said it extends assistance with the development priorities and policy of the Government whilst maintaining a relative balance among sectors and regions. Sectors include roads, power, ports, airports, water, telecommunication and others.

Assistance under the 43rd loan package will be channelled to the Greater Colombo Transmission and Distribution Loss Reduction Project of the CEB, major bridges construction project, landslide disaster protection project of the National Road Network of the RDA and Anuradhapura North Water Supply Project – Phase 1 of the NWSDB.