Following the completion of the signing of the Memorandum of Understanding (MOU) between the Official Creditor Committee (OCC) and Sri Lanka on July 23, and the Sri Lankan Government’s willingness to swiftly conclude a bilateral agreement on debt restructuring, Japan has officially decided to resume disbursements to Yen Loan Projects, which had been suspended since Sri Lanka’s default in 2022.
On July 24, the Government of Sri Lanka, the Embassy of Japan, and the Japan International Cooperation Agency (JICA) Sri Lanka Office held a joint press conference at the Ministry of Finance to announce this significant decision.
Congratulating the completion of the MOU on debt restructuring, Ambassador MIZUKOSHI Hideaki highlighted the unprecedented initiative and outstanding contribution by Japan, as a co-chair of the OCC, in leading and concluding the public debt restructuring. He also commended Sri Lankan authorities for their ongoing efforts in implementing comprehensive economic and social reforms essential for guiding the country back to a sustainable path. Ambassador MIZUKOSHI emphasized the importance of the suspended yen loan projects for Sri Lanka’s economic growth and reaffirmed Japan’s unwavering commitment to supporting Sri Lanka.
On behalf of Mr. YAMADA Tetsuya, Chief Representative of JICA Sri Lanka Office, Ms. IDE Yuri, Senior Representative, handed over the official letter regarding this decision to Mr. Mahinda Siriwardana, Secretary to the Treasury. The letter was addressed to President Wickremesinghe from Dr. TANAKA Akihiko, President of JICA.
Ms. IDE Yuri expressed her hope that the resumption of Yen Loan Projects will contribute to stabilizing Sri Lanka’s economy and society, thereby gaining momentum for long-term sustainable growth and helping Sri Lanka regain trust and confidence from its people and private businesses domestically and globally.
Secretary Siriwardana expressed his profound gratitude for this decision and sincere appreciation for Japan’s excellent initiative and long-term dedication to debt restructuring.
It is hoped that the resumption of disbursements to Yen Loan Projects will further strengthen the bond between Japan and Sri Lanka and help the island nation get back on track for economic development, positioning it as a hub in the Indian Ocean.
