President Anura Kumara Dissanayake announced that Japan has reiterated its commitment to resume 11 halted development projects in Sri Lanka, with support for the new government’s initiatives. Although these assurances were first made in July, Japan continues to pledge full backing for these projects.
In July, a Japanese delegation discussed with then-president Ranil Wickremesinghe the revival of several Japanese Official Development Assistance (ODA) projects that were suspended when Sri Lanka defaulted. These include key initiatives such as the Bandaranaike International Airport (BIA) Development Project, the Colombo Port Eastern Terminal Development Project, the Central Expressway, and the Digital Broadcasting Project.
Additionally, Japan is reconsidering the Light Railway Transit (LRT) project, a $1.5 billion initiative that was unilaterally canceled by former President Gotabaya Rajapaksa in 2021, leading to strained diplomatic ties between the two nations. While Japan is actively assessing the possibility of restarting the LRT project, no official commitment has been made yet.
Japan remains a long-standing partner in Sri Lanka’s development efforts, providing concessional financial aid for decades. The cancellation of the LRT project and a port terminal project had previously damaged relations, but Sri Lanka has since sought to rebuild these ties, with former President Wickremesinghe issuing an official apology in 2023.