COLOMBO (TIP): Japan will resume funding stalled infrastructure projects in Sri Lanka, including the expansion of the main international airport, government officials said July 24, after the bankrupt island nation successfully restructured its foreign debt.
Bilateral lenders including Japan had cut project funding when Sri Lanka defaulted on its $46 billion in foreign borrowings two years ago during an unprecedented economic crisis.
“Japan is the first country to resume financing for the suspended projects,” its ambassador to Sri Lanka Hideaki Mizukoshi told reporters.
A Sri Lankan finance ministry official said Japan will in the coming weeks release the first tranche of about $75 million for 11 projects suspended after Colombo’s sovereign default, including the Colombo airport expansion. Japan’s loan portfolio in Sri Lanka is estimated at $2.3 billion with another $1.1 billion committed for ongoing projects and is to be disbursed in the next five years, Sri Lankan officials said.
The ambassador said Tokyo was satisfied that bilateral debt restructuring had been done in a fair manner with “comparability of treatment” for all creditors.
Japan is the second largest bilateral creditor to Sri Lanka after China.
Colombo clinched a restructuring deal four weeks ago with its bilateral lenders covering up to $10 billion in debt, a critical step towards recovery after its 2022 financial crash.
A collapse in foreign exchange reserves at the time left Sri Lanka unable to import food, fuel and other essentials, leading to months of widespread shortages.
Public anger culminated in a huge crowd storming the home of then-president Gotabaya Rajapaksa, forcing him to temporarily flee abroad, from where he resigned.
His successor Ranil Wickremesinghe sealed a $2.9 billion International Monetary Fund rescue package. He has also hiked taxes and cut generous public subsidies to help restore the nation’s ruined finances. (AFP)
Please let me know if you’re looking for a writer for your weblog. You have some really great articles and I believe I would be a good asset. If you ever want to take some of the load off, I’d really like to write some content for your blog in exchange for a link back to mine. Please shoot me an e-mail if interested. Thanks!
Absolutely composed subject material, Really enjoyed reading through.
Great post however I was wondering if you could write a litte more on this topic? I’d be very thankful if you could elaborate a little bit further. Appreciate it!
Good day! This is my first visit to your blog! We are a group of volunteers and starting a new project in a community in the same niche. Your blog provided us valuable information to work on. You have done a extraordinary job!
제주 가라오케와 노래방의 이용 방식, 가격 확인 방법을 알아보는 분께 참고할 만한 안내 페이지입니다. jejukaraoke.isweb.co.kr
The following time I read a weblog, I hope that it doesnt disappoint me as a lot as this one. I mean, I do know it was my choice to read, but I actually thought youd have one thing interesting to say. All I hear is a bunch of whining about one thing that you possibly can fix if you werent too busy looking for attention.
Saved as a favorite, I really like your blog!
I know this if off topic but I’m looking into starting my own weblog and was curious what all is required to get setup? I’m assuming having a blog like yours would cost a pretty penny? I’m not very web savvy so I’m not 100 positive. Any suggestions or advice would be greatly appreciated. Thank you
This really answered my problem, thank you!
Absolutely composed written content, Really enjoyed reading through.
Pretty nice post. I just stumbled upon your weblog and wished to say that I’ve truly enjoyed surfing around your blog posts. After all I’ll be subscribing for your feed and I’m hoping you write once more soon!