By Shamindra Ferdinando
Sri Lanka’s Ambassador in Tokyo Rodney Perera has said that in the wake of the IMF finalizing the latest loan facility, the country received an assurance from Japan that infrastructure development projects here would be provided Japanese funding.Rodney Perera quoted Japanese Prime Minister Fumio Kishida as having declared that such projects were a Japanese priority.
The retired career diplomat who previously served as Sri Lanka’s ambassador to Washington presented his credentials to Emperor Naruhito at the Imperial Palace in Tokyo on 19 January 2023.Perera succeeded the US-based Sanjiv Gunasekara, a close associate of ex-President Gotabaya Rajapaksa. Gunasekara gave up the ambassadorial post just a few weeks after SLPP goon attack on protesters on May 09, 2022 and counter violence led to the resignation of Premier Mahinda Rajapaksa.
Making a special statement to Sri Lankan media, Ambassador Perera essentially dealt with five issues at hand namely explicit pledge received from the government of Japan regarding funding for infrastructure projects, ongoing talks with the Japanese leadership to regain required funding, making an environment conducive for resumption of Japanese funding, pivotal importance of the IMF releasing the funds in terms of the Extended Fund Facility (EFF) and the measures taken by the Finance Ministry as well as the Central Bank to guarantee the implementation of the agreed programme.
The IMF provides EFF to those economies facing serious medium-term balance of payments problems caused by the failure on the part of the recipients to address structural weaknesses.Ambassador Perera expressed confidence that the ongoing talks with Japan could be brought to a successful conclusion soon. Japan, a member of ‘Quad’ consisting of the US, Australia and India in Oct 2015 entered into a Comprehensive Partnership with Sri Lanka. Since then, there was an increase in Japanese warships visiting the country.
Abrupt cancellation of a Japanese funded light rail project for Colombo meant to ease congestion in the City in Sept. 2020 caused irreparable damage to relations between the two countries.No person less than Ranil Wickremesinghe, in his capacity as Prime Minister, in the second week of June last year called for a parliamentary probe into the cancellation of Japanese projects.
Former Samagi Jana Balawegaya MP and their mayoral candidate for Colombo Mujibur Rahuman said that unfortunately, the Wickremesinghe-Rajapaksa hadn’t initiated an inquiry yet.Rahuman said that though Wickremesinghe alleged in parliament that the unjustifiable SLPP government action deprived the country of much needed foreign investment, he hadn’t taken action in that regard.
The Prime Minister’s Office quoted the UNP leader as having told Parliament: “Japan is our longtime friend, a nation that has helped our country greatly. But they are now unhappy with us due to the unfortunate events of the past. Our country had failed to formally notify Japan of the suspension of certain projects. Sometimes the reasons for these suspensions were not even stated.”
Premier Wickremesinghe asked the COPF (Committee on Public Finance) to investigate cancellation of the Liquid Natural Gas (LNG) projects, undertaken by India and Japan. The Premier has alleged that the CEB halted both projects at least giving justifiable reasons.
Then COPF Chairman Anura Priyadarshana Yapa told The Island that Wickremesinghe’s allegation pertaining to putting on hold, projects funded by Japan, to the tune of USD 3 bn, by 2019, was quite serious.
Legal sources said that cancellation of several high profile foreign funded projects, including the Millennium Challenge Corporation (MCC) project had been cited in a fundamental rights petition, filed against the former Finance Ministers, Mahinda Rajapaksa, Basil Rajapaksa and Ali Sabry, other members of the Cabinet, the Monetary Board of the CBSL, former Governors of the CBSL, Prof. W.D. Lakshman and Ajith Nivard Cabraal, former Finance Secretary S.R. Attygalle, Monetary Board member S.S.W. Kumarasinghe, former Presidential Secretary Dr. P.B. Jayasundera and three Commissioners of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).
The petition, filed by Dr. Athulasiri Kumara Samarakoon of the Open University of Sri Lanka, Soosaiappu Neavis Morais and Dr. Mahim Mendis, in terms of Articles 17 and 126 of the Constitution, alleged that after the last presidential election several projects, that had been finalized and would have generated substantial revenue in foreign exchange, were stopped. The petition named the cancelled projects as the Light Rail Project, East Container Terminal (ECT) involving India, and Japan, the Central Highway Phase 3 and 4 with Japan and India, and the MCC Agreement with the US.