The Government of Japan has officially decided to resume disbursement for Yen Loan Projects in Sri Lanka, which were suspended following the country’s default in 2022. This decision was announced at a joint press conference by the Sri Lankan Finance Ministry, the Embassy of Japan, and the Japan International Cooperation Agency (JICA) Sri Lanka Office.
The resumption follows the signing of a Memorandum of Understanding (MOU) between the Official Creditor Committee (OCC) and Sri Lanka on 23 July, along with Sri Lanka’s expressed commitment to quickly finalize a bilateral agreement on debt restructuring.
Japan’s Ambassador Mizukoshi Hideaki congratulated Sri Lanka on the MOU completion and highlighted Japan’s significant role as a co-chair of the OCC in leading the debt restructuring efforts. He praised the Sri Lankan authorities for their economic and social reform initiatives aimed at restoring the country’s sustainability.
Ambassador Mizukoshi emphasized the importance of the suspended yen loan projects, noting their critical role in promoting Sri Lanka’s economic growth. He reaffirmed Japan’s unwavering support for Sri Lanka.
During the event, JICA Sri Lanka Office Chief Representative Yamada Tetsuya and Senior Representative Ide Yuri handed over the official decision letter to Treasury Secretary Mahinda Siriwardana, addressed to President Ranil Wickremesinghe from JICA President Dr. Tanaka Akihiko.
Yuri expressed hope that the resumption of Yen Loan Projects would stabilize Sri Lanka’s economy and society, aiding in long-term sustainable growth and rebuilding trust and confidence among the people and businesses in Sri Lanka and globally.
Secretary Siriwardana expressed profound gratitude for Japan’s decision and commended Japan’s dedication to Sri Lanka’s debt restructuring process. He highlighted that the resumption of disbursement to Yen Loan Projects would strengthen the bond between Japan and Sri Lanka and help the island nation regain its economic development trajectory, reinforcing its role as a key hub in the Indian Ocean.