ECONOMYNEXT – Japan has promised to resume its suspended projects and financially back Sri Lanka after the island nation sign an agreement with bilateral creditors, the island nation’s Foreign Minister Ali Sabry said.
The diplomatic relation between the two countries faced a severe blow when former president Gotabaya Rajapaksa unilaterally cancelled Light Railway Transit (LRT) and East Container Terminal (ECT) projects in 2021. Japan was to finance for the both projects.
President Ranil Wickremesinghe’s government has made deliberate attempts to mend the ties with Japan, which was once the top donor for the island nation.
“Japan has promised to financially back us once we conclude the bilateral creditor agreement,” Foreign Minister Ali Sabry told EconomyNext in an interview.
“We hope to sign the bilateral creditor agreement in next 2-3 months.”
In a separate event in Colombo on Thursday, Japanese Ambassador to Sri Lanka Mizukoshi Hideaki expressed Japan’s support for the current program aimed at rebuilding the Sri Lankan economy.
“He underscored the necessity for Sri Lanka to develop comprehensive industrial policies aimed at fostering competitive export sectors while concurrently striving to attain sustainable development objectives,” the President Media Division (PMD) said referring to Mizukoshi’s speech at an event attended by President Ranil Wickremesinghe.
The Ambassador commended the proactive measures undertaken by the Sri Lankan government in its on-going anti-corruption initiatives.
“He expressed Japan’s commitment to steadfastly supporting these efforts, acknowledging the importance of combating corruption for fostering a conducive environment for economic growth and investment.”
He also highlighted Japan’s commitment to aiding Sri Lanka’s anti-corruption endeavours by disclosing that Japan has extended financial aid through the United Nations Development Program to bolster the Commission to Investigate Allegations of Bribery or Corruption in Sri Lanka.
“Furthermore, he underscored Japan’s readiness to provide support via institutions like the Japan International Cooperation Agency (JICA) for diverse development initiatives in Sri Lanka,” the PMD said in the statement.
“Additionally, he expressed hope for future investment opportunities in Japan to facilitate Sri Lanka’s economic growth, emphasizing the potential benefits of fostering bilateral economic ties between the two nations.” (Colombo/March 22/2024)