Signing and Exchange of Notes Concerning Yen Loan to Sri Lanka

March 14, 2018

  1. 1. On March 14, following the Japan-Sri Lanka summit meeting in Tokyo, Mr. Kenichi Suganuma, Ambassador Extraordinary and Plenipotentiary 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 the provision of a yen loan up to 10.639 billion yen for the Health and Medical Service Improvement Project, in the presence of Mr. Shinzo Abe, Prime Minister of Japan, and H.E. Mr. Maithripala Sirisena, President of the Democratic Socialist Republic of Sri Lanka.

    2. Overview of the Project
    The project is being financed to improve the medical facilities and equipment in tertiary healthcare institutions (1) and training centers for medical staff, as well as strengthening the maintenance of medical equipment in the Western, Northwestern, Central, North Central, Eastern and Uva Provinces in Sri Lanka. It is expected that the project will enhance medical services relating to the diagnosis and treatment of non-communicable diseases (NCDs), especially cardiovascular diseases.

    Through the implementation of this project it is expected that by 2025 (two years after the completion of the project) the number of annual catheter examinations (2) per annum at medical institutions included in the project will rise from approx. 2,800 currently to approx. 11,100, and that catheter treatments will increase from approx. 800 to approx. 5,000 per annum. It is expected that improved access to medical care will contribute to improving the health conditions of residents.

    (1) Tertiary healthcare institutionsMedical institutions capable of providing the highest level of medical care, including national hospitals, provincial general hospitals and teaching hospitals, etc.
    (2) Catheter examination/treatmentFor cardiovascular conditions, examination or treatment of blood vessels, etc., using a catheter (a very fine tubular instrument).

    3. Loan terms

    (1) Rate of interest0.1% per annum (0.01% per annum for consulting services)
    (2) Repayment period40 years (after a grace period of 12 years)
    (3) Procurement termsJapan tied

    (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 21.2 million people (World Bank, 2016). It has a gross national income (GNI) per capita of approximately 3,780 U.S. dollars (World Bank, 2016).