Korean Exim Bank to Resume Financial Support for Sri Lanka’s Development Projects
The Export and Import (Exim) Bank of Korea has committed to providing financial assistance for development projects in Sri Lanka, according to a statement from the President’s Media Division (PMD).
This agreement was made during a meeting at the Presidential Secretariat on Thursday (October 3) between Exim Bank officials and Secretary to the President Nandika Sanath Kumanayake.
Support from the Korean Exim Bank had previously been halted due to Sri Lanka’s economic crisis and sovereign debt default. However, during the meeting, Exim Bank representatives expressed their readiness to offer subsidized interest loans to restart these vital projects.
They also reiterated their intention to back future economically viable initiatives led by the Sri Lankan government.
Participants in the meeting included Director of Exim Bank Won-suk Ha, Deputy Director Hanui Han, and Project Manager Nalin Jayathunga. In a bid to enhance economic collaboration between the two nations, the Republic of Korea has agreed to provide concessional loans through the Economic Development Cooperation Fund (EDCF) managed by the Korean Eximbank.
The Exim Bank has officially informed Sri Lanka’s Ministry of Finance, Economic Stabilization, and National Policies of its decision to recommence EDCF Official Development Assistance (ODA) projects.
This decision follows the finalization of a Memorandum of Understanding (MOU) between the Official Creditor Committee (OCC) and Sri Lanka on June 26, 2024, as stated by the Korean Embassy in a media release.
The resumption of these financial flows includes signing loan agreements and advancing the bidding process for ongoing EDCF projects in Sri Lanka. This will facilitate the continuation of existing construction projects, such as the Ruwanwella Water Supply Project.
This development represents a crucial milestone in reinforcing the long-standing relationship between Korea and Sri Lanka. It is anticipated to aid in the recovery and stabilization of Sri Lanka’s economy while fostering sustainable growth.
The Economic Development Cooperation Fund (EDCF) was established by the Korean government in 1987 to support the industrial development and economic stabilization of partner countries, thereby promoting economic cooperation with Korea. Since 1990, the EDCF has approved nearly USD 1 billion for 30 development projects in Sri Lanka.
