Japan prepares to recommence paused official development projects

Dr. IZUMI Hiroto, head of the Japanese delegation visiting Sri Lanka, praised the successful completion of the country’s debt restructuring process, stating that it has opened the door for the resumption of Japanese Official Development Assistance (ODA) projects. These projects, including some that were previously put on hold, are now ready to restart, indicating a new phase of cooperation and development.

Dr. Hiroto emphasized that the trust of the international community in President Ranil Wickremesinghe’s leadership is clearly evident in the swift accomplishment of the debt restructuring agreements. This milestone, achieved in collaboration with the Official Creditors’ Committee and the International Monetary Fund, marks a significant turnaround for Sri Lanka.

The high-level Japanese delegation, composed of representatives from the housing, construction, and urban sectors, met with President Ranil Wickremesinghe at the Presidential Secretariat today (18).

During the meeting, Dr. IZUMI Hiroto highlighted the successful conclusion of Sri Lanka’s debt restructuring process and announced that Japanese Official Development Assistance (ODA) projects, including previously suspended ones, are set to recommence.

The discussion also covered new investment opportunities in Sri Lanka, stressing the potential for increased collaboration between the two countries. The delegation expressed gratitude for Sri Lanka’s economic advancements and the quick achievement of debt restructuring agreements in partnership with the Official Creditors’ Committee and the International Monetary Fund. They commended President Wickremesinghe’s leadership in guiding the country through its financial challenges, which has restored international confidence and paved the way for renewed development efforts.

President Ranil Wickremesinghe, recalling Japan’s crucial assistance during Sri Lanka’s debt restructuring process, reiterated Sri Lanka’s dedication to strengthening economic ties with Japan in various sectors such as education and agricultural modernization. The President emphasized the importance of resuming stalled projects under Japanese cooperation to further bolster bilateral relations.

In addition, President Wickremesinghe underscored the pivotal role of the Colombo Dockyard, highlighting its significance as a key institution in Sri Lanka’s maritime and industrial framework.

The Japanese delegation mentioned that several currently 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 recommenced.

Furthermore, the delegation pointed out the potential to resume the Light Railway Transit (LRT), which was halted by the previous government. They are actively exploring locations to reintroduce this project, recognizing its significant potential in alleviating traffic congestion in Colombo city.

Both sides emphasized the importance of Public-Private Partnerships (PPP) in implementing housing for low-income individuals and other urban development projects. They also highlighted the Government of Sri Lanka’s commitment to promoting environmentally friendly projects and renewable energy in alignment with its policies and international agreements.

The Japanese delegation expressed their willingness to the President to recruit Sri Lankan graduates in the field of technology for job opportunities in Japan’s private sector. This initiative aims to enhance the electricity supply sector in Japan. The delegation also highlighted the Joint Credit Mechanism (JCM), which includes projects focused on promoting environmental sustainability by utilizing advanced Japanese technology to reduce carbon dioxide emissions.

Chief of Presidential Staff and Senior Advisor to the President on National Security Sagala Ratnayaka, Japanese Ambassador to Sri Lanka H.E. Mizukoshi Hideaki, Chairman of the Board – Japan Bank for International Cooperation (JBIC) Mr. MAEDA Tadashi, Presidential Senior Advisor to the President on Economic Affairs Dr. R. H. S. Samaratunga, and the Managing Director/CEO of the Colombo Dockyard PLC Mr. Thimira S. Godakumbura, along with representatives from several leading businesses in Japan attended the discussion.