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USD 2.5 bn JAICA projects suspended pending release of USD 2.9 bn IMF loan facility

Prime Minister Dinesh Gunawardena, on Monday (20), urged the Japan International Cooperation Agency (JAICA) to recommence projects suspended due to ongoing financial crisis.

The Premier made this request when JAICA Director General for South Asia, Ito Teruyuki, called on him. Teruyuki assured the Prime Minister that JAICA projects would be resumed once the debt restructuring programme was finalised by the IMF.

US$ 2.5 billion worth 12 JAICA projects have been halted due to the fiscal crisis. The JAICA delegation expressed satisfaction at the progress in debt restructuring plans in which Japan also played a major role.

The Prime Minister thanked JAICA Director General for the continuous assistance provided to Sri Lanka for water treatment, sewerage, sanitation and solid waste treatment projects in several cities and towns. He also requested JAICA to provide assistance, in new areas, such as renewable energy and electrification of public transport and railways.

Prime Minister Gunawardena also briefed the JAICA delegation on the steps taken to improve transparency and accountability in project implementation, by enacting the required legislations, as recommended by the Committee appointed by the President. He added that a Budget Act would be passed to ensure continuation of nationally important projects, and policies, despite change of governments in power.

Secretary to the Prime Minister Anura Dissanayake, Secretary Public Administration and Home Affairs Neel Bandara Hapuhinna, Japanese Ambassador Mizukoshi Hideaki, JAICA Chief Representative Tetsuya Yamada and Special Representative Ide Yuri also took part in the discussion.

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