The Export-Import Bank of Korea (Korea Eximbank) has officially notified Sri Lanka’s Ministry of Finance of its decision to resume Economic Development Cooperation Fund (EDCF) Official Development Assistance (ODA) concessional loan projects.
The resumption follows the finalization of a Memorandum of Understanding (MOU) between the Official Creditor Committee (OCC) and Sri Lanka on June 26, 2024.
This decision includes restarting disbursements, signing loan agreements, and advancing the bidding process for all ongoing EDCF projects in Sri Lanka. This will facilitate the continuation of construction projects, such as the Ruwanwella Water Supply Project.
This move signifies a significant step in strengthening the longstanding ties between the Republic of Korea and Sri Lanka. It is expected to contribute to the recovery and stabilization of Sri Lanka’s economy while promoting sustainable growth.
The EDCF, established by the Korean government in 1987, aims to support industrial development and economic stabilization in partner countries and to promote economic cooperation with Korea. Korea Eximbank manages the operation of the EDCF, and since 1990, it has authorized nearly USD 1 billion for 30 development projects in Sri Lanka.
Previously, the Government of Japan announced its decision to resume disbursements for its funded project portfolio in Sri Lanka, signaling confidence in Sri Lanka’s economic reform program and renewed optimism for the country’s future.
With this decision, suspended projects, including the Bandaranaike International Airport Development Project, utility projects, health sector improvement projects, and rural development projects, will be revived, paving the way for economic and social improvement in the country.
The Bandaranaike International Airport Development Project, in particular, is critical for developing Sri Lanka’s connectivity infrastructure, providing a major boost for key sectors such as tourism, trade, and investment.
The official announcement by Dr. Tanaka Akihiko, President of the Japan International Cooperation Agency (JICA), on the resumption of disbursements, was recently handed over to K.M. Mahinda Siriwardana, Secretary to the Treasury and the Ministry of Finance, Economic Stabilization, and National Policies, by Ms. IDE Yuri, Senior Representative of the JICA Sri Lanka Office.
