Signing and Exchange of Notes concerning Yen Loans and Grant Aid to Sri Lanka
1. On April 12, following the Japan-Sri Lanka Summit Meeting, Mr. Kenichi Suganuma, Ambassador of Japan to the Democratic Socialist Republic of Sri Lanka, and Prof. Dammika Ganganath Disanayake, Ambassador Extraordinary and Plenipotentiary of the Democratic Socialist Republic of Sri Lanka to Japan signed and exchanged notes concerning two yen loan projects and one grant aid project in Tokyo, in the presence of Mr. Shinzo Abe, Prime Minister of Japan, and the Hon. Mr. Ranil Wickremasinghe, Prime Minister, Democratic Socialist Republic of Sri Lanka.
2. Overview of the Projects
(1) “Rural Infrastructure Development Project in Emerging Regions” (yen loan 12.957 billion yen)
This project is to improve basic infrastructure (local roads, small and medium-sized irrigation, and small-scale water supplies), directly connected to the lives and production activities of people in Sri Lanka’s Northern Province, Eastern Province, North Central Province and Uva Province, where development had been delayed due to the conflict and others.
(2) “Kalu Ganga Water Supply Expansion Project (I)” (yen loan 31.81 billion yen)This project is to construct new waterworks facilities and to reconstruct the water supply system for the Kalu Ganga river system in Kalutara District and Colombo District in the Western Province.
The terms of the two loans are as follows:
|(i)||Interest rate||:||1.4% per annum (0.01% per annum for the consulting services)|
|(ii)||Repayment period||:||25 years (including a seven-year grace period)|
|(iii)||Procurement terms||:||General untied|
(3) “The Economic and Social Development Programme” (grant aid: 1 billion yen)
This project aims to realize safer and more efficient management in the Port of Trincomalee, which receives favorable terms as anchorage, by providing equipment relating to port facilities manufactured in Japan to the Sri Lanka Ports Authority.
As the Port of Trincomalee is located in the Eastern Province, it is expected that the project will contribute to the restoration of conflict-affected areas.
(Reference)Japan-Sri Lanka Relations (Basic Data)
Sri Lanka is a country located in the Indian Ocean that has a land area of approximately 66,000 square kilometers (approximately 0.2 times Japan’s), and a population of 20.96 million people (World Bank, 2015). It has a gross national income (GNI) per capita of approximately 3,800 U.S. dollars (World Bank, 2015).