Japan Resumes Yen Loans to Sri Lanka

Japan has announced the resumption of yen loans and operations for 11 ongoing projects in Sri Lanka, following significant progress in the island nation’s debt restructuring efforts. The decision comes after the signing of a Memorandum of Understanding (MoU) on July 23 between Sri Lanka and its official creditor countries, co-chaired by Japan, France, and India.

Sri Lanka had temporarily suspended external debt payments in April 2022, leading to Japan halting disbursement of yen loans. The recent MoU and Sri Lanka’s commitment to concluding a bilateral agreement with Japan have paved the way for the resumption of financial support.

Japan’s Foreign Minister KAMIKAWA Yoko emphasized that Sri Lanka’s strategic position in the Indian Ocean is crucial for the stability and prosperity of the Indo-Pacific region. The resumption of yen loan projects is seen as a significant step towards supporting Sri Lanka’s sustainable development and growth. (LankaXpress.com)