ECONOMYNEXT – Sri Lanka has requested Japanese government to resume a $1.5 billion worth Light Rail Transit project which was unilaterally cancelled by former leader Gotabaya Rajapaksa, but Tokyo has not agreed on the request, Foreign Minister Ali Sabry said.
The project was cancelled by Rajapaksa without any discussion with Japan or its main funding agency Japan International Cooperation Agency (JICA) in 2021, leading to severed ties in the diplomatic relations between the two countries.
Sri Lanka President Ranil Wickremesinghe has apologized to the Japanese government in May 2023 in his official visit to Tokyo for the cancellation of the project.
Though Japan has agreed to resume all the project stopped due to Sri Lanka’s unprecedented economic crisis, Tokyo has not agreed to resume the LRT after the then Japanese government went out of way to help Sri Lanka to fund the project.
“What we did was, we made request to them. We haven’t agreed on that,” Sabry told reporters at a media briefing on Wednesday (08).
“The agreement right now is to restart what was commenced and stalled at the time of crisis. LRT is a different thing. We told that we are keen on restarting the LRT. Nothing further was discussed on LRT. We expressed on our side that we are keen.”
The cancellation of the JICA-funded project by President Gotabaya Rajapaksa’s government, which was closer to Beijing has hurt Japan, top Sri Lankan diplomats have said.
The East Asian nation has long been the top concessional financial aid provider to Sri Lanka with mutually beneficial diplomatic ties going back seven decades.
Sri Lanka has agreed to pay about $3.4 million (about billion Sri Lankan rupees) to a consultancy led by Japanese firms, after the LRT project was cancelled suddenly. (Colombo/May 09/2024)