Japan to loan to Sri Lanka

Japan has officially announced the resumption of funding for Yen Loan Projects in Sri Lanka, which had been suspended since the country's debt repayment suspension in 2022. This decision follows the signing of a Memorandum of Understanding (MOU) between Sri Lanka and the Official Creditor Committee on July 23, demonstrating Sri Lanka's commitment to finalizing a debt restructuring agreement. A joint press conference highlighted the significance of this development, with Japanese Ambassador Mizukoshi Hideaki commending Sri Lanka's economic reforms and Japan's role in the restructuring process. The projects set to resume include significant infrastructure initiatives such as the Bandaranaike International Airport and Colombo Port Eastern Terminal, aiming to bolster Sri Lanka's economic growth. Over the next five years, the funding is expected to inject $1.1 billion into the Sri Lankan economy. This renewed cooperation is anticipated to strengthen the bilateral relationship between Japan and Sri Lanka while supporting the nation's recovery efforts.