COLOMBO : On 7th March, Akio ISOMATA, Ambassador of Japan to Sri Lanka, and L. K.M. Mahinda Siriwardana, Secretary to the Ministry of Finance, Planning and Economic Development signed and exchanged Notes on the bilateral debt rescheduling. This was followed by the signing of Amendment Agreement between IJ Tetsuya YAMADA, Chief Representative of Japan International Cooperation Agency (JICA) Sri Lanka Office, and Secretary Siriwardana.
In July last year, a Memorandum of Understanding (MOU) on debt restructuring was signed between the Official Creditor Committee (OCC) members and Sri Lanka, after which the Government of Japan resumed disbursement for the on-going yen loan projects, such as the Bandaranaike International Airport terminal expansion project.
Based on the MOU, the bilateral agreement signed today amends the repayment terms of the outstanding loans for Japanese ODA projects. The signing of the bilateral agreement officially concludes the public debt restructuring between Sri Lanka and Japan. Japan is the first among the OCC members to conclude a bilateral agreement on the debt rescheduling.
In his remarks, Ambassador ISOMATA highlighted that nthe timing of this agreement is not only an important milestone in the progress of the IMF program, but also a crucial opportunity to strongly support the revitalization of Sri Lanka’s economy. He also added Japan hopes that Sri Lanka will complete all debt restructuring with other creditors as soon as possible and steadily move forward on the path to further development.
Ambassador ISOMATA also highlighted the importance of the restoration of Sri Lanka’s credibility in the international community, which is necessary in order for Sri Lanka to achieve its sustainable development. He further reaffirmed Japan’s robust commitment to supporting Sri Lanka’s various initiatives to this end.Mr. Yamada, JICA Chief Representative, reiterated JICA’s commitment to continued support for implementing all the committed projects as smoothly as possible to deliver tangible results to accelerate economic growth. Mr. Yamada also said that JICA continues to prioritize technical assistance to support Sri Lanka’s robust reform measures in such important areas as anti-corruption, public finance management, and the electricity sector reform.
The development of Sri Lanka, which is located at a strategic point in the Indian Ocean, is essential for the stability and prosperity of the entire Indo-Pacific region. Japan intends to further contribute to the sustainable development of Sri Lanka.
