By: Staff Writer
July 06, Colombo (LNW): Japan has pledged continued support for Sri Lanka’s economic recovery and development agenda through a multi-pronged approach that emphasizes fiscal reform, social resilience, and peace-building.
The commitment was reiterated during the Japan-Sri Lanka Economic Cooperation Policy Dialogue held in Colombo on Friday, July 4, 2025.
The meeting marked a crucial step in strengthening bilateral ties as Sri Lanka actively seeks international support to navigate its ongoing economic stabilization program, aligned with the International Monetary Fund (IMF)’s Extended Fund Facility.
The Sri Lankan delegation, led by newly appointed Treasury Secretary Harshana Suriyapperuma, formally requested Japan’s sustained cooperation in backing existing yen-loan funded projects and bridging financing gaps to attract further foreign investment.
Japan was represented by Ishizuki Hideo, Assistant Minister and Director General of the International Cooperation Bureau at the Ministry of Foreign Affairs.
He highlighted Japan’s commitment to supporting Sri Lanka’s efforts to recover from the 2022 economic collapse, rebuild its financial systems, and reduce poverty and inequalities—all under the broader umbrella of achieving the Sustainable Development Goals (SDGs) and promoting human security.
Ishizuki outlined three strategic pillars guiding Japan’s assistance: implementing fiscal and structural reforms for long-term stability, strengthening social resilience, and ensuring peace and good governance.
“Japan will continue to provide support to the people of Sri Lanka to help the country fully recover from the economic crisis and return to a path of progressive development,” he said.
Sri Lanka has been a major beneficiary of Japan’s Official Development Assistance (ODA) over the decades. Currently, Japan’s active yen loan portfolio in Sri Lanka exceeds ¥350 billion (approximately US$ 2.3 billion or Rs. 710 billion), funding key infrastructure and development projects.
These include the New Kelani Bridge, the Bandaranaike International Airport Expansion Project, the Anuradhapura Integrated Water Supply Project, and the Greater Colombo Transmission and Distribution Loss Reduction Project.
While many of these projects are ongoing, some have faced delays due to Sri Lanka’s economic and foreign exchange crisis in recent years. The Japanese delegation’s visit signals a renewed interest in resuming and accelerating stalled initiatives, provided that governance, transparency, and reform assurances are met.
Treasury Secretary Suriyapperuma emphasized the urgent need for both technical expertise and financial aid to support reforms, including those aimed at strengthening debt sustainability, public sector efficiency, and climate resilience.
The Finance Ministry said the dialogue fostered positive discussions on future economic cooperation, with both sides acknowledging the importance of deepening development ties amid evolving global and regional challenges.
