Japanese Delegation Lauds Sri Lanka’s Debt Restructuring and Announces Resumption of Development Projects
July 19, Colombo (LNW): Dr. IZUMI Hiroto, head of the Japanese delegation visiting Sri Lanka, praised the successful completion of the country’s debt restructuring process, highlighting that it has paved the way for the resumption of Japanese Official Development Assistance (ODA) projects. These projects, which include several initiatives that were previously suspended, are now set to restart, marking a renewed phase of cooperation and development between the two nations.
Dr. Hiroto emphasized that the international community’s confidence in President Ranil Wickremesinghe’s leadership is evident in the expedited success of the debt restructuring agreements. This achievement, accomplished in partnership with the Official Creditors’ Committee and the International Monetary Fund, signifies a remarkable turnaround for Sri Lanka.
The high-level Japanese delegation, which includes representatives from the housing, construction, and urban sectors, met with President Ranil Wickremesinghe at the Presidential Secretariat on the morning of the 18th. During the meeting, Dr. Hiroto reiterated the successful completion of Sri Lanka’s debt restructuring process and announced that previously suspended ODA projects are set to resume.
The discussion also focused on new investment opportunities in Sri Lanka, with an emphasis on enhancing cooperation between the two countries. The delegation expressed their appreciation for Sri Lanka’s economic progress and the swift achievement of debt restructuring agreements. They commended President Wickremesinghe’s leadership in steering the country through its financial challenges, restoring international confidence, and paving the way for renewed development initiatives.
President Wickremesinghe, recalling Japan’s invaluable support during Sri Lanka’s debt restructuring process, emphasized Sri Lanka’s commitment to deepening economic cooperation with Japan across various sectors, including education and agricultural modernization. He stressed the importance of resuming stalled projects under Japanese cooperation to further strengthen bilateral relations.
Furthermore, President Wickremesinghe highlighted the critical role of the Colombo Dockyard, underscoring its significance as a key institution in Sri Lanka’s maritime and industrial landscape.
The Japanese delegation noted that several suspended projects, including the Bandaranaike International Airport (BIA) Development Project, the Colombo Port Eastern Terminal Development Project, the Central Expressway Construction, and the Digital Broadcasting Project, can be promptly restarted. They also discussed the potential to resume the Light Railway Transit (LRT) project, which was halted by the previous government, recognizing its significant potential to alleviate traffic congestion in Colombo city.
Both sides emphasized the importance of Public-Private Partnerships (PPP) in executing housing for low-income earners and other urban development projects. The Government of Sri Lanka is committed to promoting environmentally friendly projects and renewable energy in line with its policies and international agreements.
The Japanese delegation expressed their willingness to recruit Sri Lankan graduates in the field of technology for job opportunities in Japan’s private sector. This initiative aims to improve the electricity supply sector in Japan. Additionally, they highlighted the Joint Credit Mechanism (JCM), which encompasses projects designed to promote environmental sustainability by utilizing advanced Japanese technology to reduce carbon dioxide emissions.
