Japanese Finance Minister applauds Sri Lanka’s economic revival progress

Saturday, 13 January 2024 01:21 - - {{hitsCtrl.values.hits}}

Commends President RW for his strong leadership, positive trends in economy
Expresses potential resumption of Yen loans following MoU at Official Creditor Committee
President extends appreciation for Japan’s lead in addressing Sri Lanka’s debt restructuring efforts
Highlights need for further collaboration between Japan-SL in areas to create green economy, digital strategy

Concluding a two-day official visit, Japanese Finance Minister Suzuki Shunichi expressed admiration for the significant improvements observed in the revival of the Sri Lankan economy.

Commending President Ranil Wickremesinghe for his strong leadership, Minister Shunichi acknowledged the positive trends in Gross Domestic Product (GDP) and inflation indicators under the President’s direction.

Japan’s Finance Minister Shunichi arrived in Sri Lanka on 11 January, with the primary objective of strengthening economic relations between Japan and the Sri Lankan Government. His visit assumes particular significance amid the economic challenges faced by Sri Lanka, prompting comprehensive reform measures focusing on macro stability and debt sustainability.

Addressing the recent suspension of Yen loans due to a debt crisis, Minister Shunichi outlined the potential resumption of Yen loans pending the conclusion of a Memorandum of Understanding (MoU) at the Official Creditor Committee (OCC) and continued debt sustainability monitored by the International Monetary Fund (IMF).

The discussions included a wide range of collaborative initiatives, such as information-technological cooperation, maritime-security collaboration, resumption of stalled projects, long-term bilateral cooperation, finalisation of debt restructuring agreements and pipeline projects.

Wickremesinghe, during discussions with Minister Shunichi, expressed appreciation for Japan’s lead role in addressing Sri Lanka’s debt issues. He also emphasised Japan’s crucial role in Sri Lanka’s current economic standing and expressed confidence in the deepening ties between the two countries, acknowledging the swift resolution of recent challenges.

Japan’s Finance Minister has been instrumental in urging all creditor nations to gather and discuss Sri Lanka’s debt during the G20 meeting last year.

Both leaders mutually appreciated the ongoing support and cooperation between their countries.

Reflecting on the cooperation, Wickremesinghe highlighted the need for further collaboration, particularly in the realms of a competitive green economy and a digital economy. He stressed the importance of focusing on exports to enhance the trade balance, expressing optimism for the realisation of a new economic model in Sri Lanka.

The President affirmed his commitment to enhancing closer ties, laying the groundwork for future cooperation.

In response, Japanese Finance Minister expressed gratitude for President Wickremesinghe’s update and emphasised the value of transparent and comparable debt restructuring.