November 30, Colombo (LNW): The Japanese Embassy has announced that Japan will carefully evaluate any potential new projects in Sri Lanka, prioritising an examination of requests from Sri Lankan authorities alongside the country’s economic situation.
The embassy clarified that its immediate focus remains on advancing 11 ongoing projects that were resumed following Sri Lanka’s debt restructuring.
Responding to queries about the possibility of new collaborations after the formation of the new Sri Lankan government, the embassy confirmed that no additional projects would be initiated until further assessments are made.
Instead, Japan’s priority is to ensure the smooth continuation of the existing initiatives, which include significant infrastructure and development efforts.
Amongst the key projects currently underway is the much-anticipated expansion of Bandaranaike International Airport, which is progressing as planned, alongside several other Japanese-funded ventures.
These include the Kalu Ganga Water Supply Expansion, the Anuradhapura North Water Supply Project, the Kandy City Wastewater Management initiative, and the formulation of a solid waste management master plan for Western Province.
Other ongoing efforts include capacity-building programmes for urban planning, water management, and the development of future leaders in these fields.
Additionally, Japan is supporting Sri Lanka’s fishing and agrarian communities through a dedicated programme aimed at improving livelihoods in the Northern Province.
Japan’s commitment to these projects follows its pivotal role in the restructuring of Sri Lanka’s bilateral debts. On July 22, 2024, following the successful signing of a Memorandum of Understanding by all members of the Official Creditor Committee, Japan resumed its disbursement of loans to 11 projects, with 12.5 billion Japanese yen (approximately US$ 87 million) allocated by the end of September.
Japan’s leadership in these negotiations has been critical to Sri Lanka’s economic recovery process, with the country having also played a central role in the restructuring of Sri Lanka’s International Sovereign Bonds.
In addition to these efforts, Japan has provided substantial humanitarian assistance in response to Sri Lanka’s ongoing economic challenges, including grants worth approximately US$ 100 million.
This marks the largest annual humanitarian aid package Japan has ever extended, underscoring the country’s ongoing support for Sri Lanka during its period of economic crisis.
