Press Releases

As one of the main development partner, Government of Japan extends the hands of friendship to Sri Lanka whenever the help is needed. Accordingly, amid the present economic crisis situation, Government of Japan has donated various aids to Sri Lanka ensure the food security, quality of health care facilities and the social wellbeing of the people.

The fisheries sector in Sri Lanka has the potential to be competitive in the global markets and increase employment opportunities, food security and export earnings in a sustainable manner. In line with the National Fisheries and Aquaculture Policy framework, the Government envisages achieving the objectives of increased per capita fish consumption, reduced post-harvest loss, generated employment opportunities, improved quality of life of the fisher community, increased foreign exchange and ensure long-term sustainability of the fisheries industry.

Considering the above fact, The Government of Japan has agreed to provide a grant assistance, amounting to Japanese Yen Two Million (approximately LKR 435 Million) under the Japanese Economic and Social Development Program to Provide Supportive Equipment for the Fisheries Industry. The objective of this grant aid to develop cold chain facilities and equip the fisheries sector with modern electronic equipment and, thereby realizing high value-added marine products and contributing to the upgrading the living standard of the fishermen in Northern and eastern Provinces of Sri Lanka.

Under this Grant assistance, Ice Making Machines, Digital Platform Scales, sets of Fishing Net, Refrigerator Truck and Prefabricated Refrigerators/Freezers will be provided. This grant assistance will be a great patronage to reduce the constraints that exist in the value chain and increase the competitiveness, by promoting private sector investments in the fisheries industry.

The Exchange of Notes pertaining to the above grant were signed by Mr. K.M Mahinda Siriwardana, Secretary to the Ministry of Finance, Economic Stabilization and National Policies on behalf of the Government of Sri Lanka and His Excellency Mr. MIZUKOSHI Hideaki, Ambassador of Government of Japan with the participation of Honorable Minister of Fisheries, Mr. Douglas Devananda and Honorable State Minister of Finance Mr. Shehan Semasighe of the Democratic Socialist Republic of Sri Lanka on November 22, 2023 at the Ministry of Finance.

Ministry of Finance, Economic Stabilization and National Policies
Colombo 01
On November 22, 2023.

The Government of Sri Lanka is planning to borrow USD 500 million from the International Development Association (IDA) of the World Bank Group in 2023 to finance the implementation of Sri Lanka First Programmatic Resilience, Stability and Economic Turnaround (RESET), Development Policy Operation (DPO) Program.

The DPO is a two-year program from 2023-2024. USD 500 million will be provided under this program in two equal tranches to support the Government of Sri Lanka’s foundational reform plan. This plan aims to restore stability through macroeconomic adjustments in the short run, help the poor and vulnerable cope with the current shock, and address structural causes of the current economic crisis to help restart growth. The DPO’s first tranche of USD 250 million will be available for disbursement upon the effectiveness of the operation after World Bank Board approval on 28^th June 2023. The second tranche will be available in October 2023 subject to the enactment of the Banking (Special Provisions) Act, acceptable progress in carrying out the program, and continued adequacy of the macroeconomic policy framework.

The DPO program seeks to address some of the root causes of the economic crisis and introduce measures to avoid a repetition of such a crisis through three pillars: (i) improving economic governance to strengthen fiscal discipline, transparency, and accountability of fiscal and public resource management and safeguard financial stability; (ii) enhancing growth and competitiveness to unlock Sri Lanka’s growth potential through a more vibrant and competitive private sector; and (iii) protecting the poor and vulnerable from the fallout of the crisis.

The relevant Loan Agreement for the Sri Lanka Resilience, Stability and Economic Turnaround (RESET), Development Policy Operation (DPO), amounting to USD 500 million was signed by Mr. A.K. Seneviratne, Deputy Secretary to the Treasury, and Mr. Faris H.Hadad-Zervos, Country Director, on 29^th June 2023 on behalf of the Government of Sri Lanka and IDA, respectively.

The Government of Sri Lanka has made arrangements to borrow USD 200 million from the International Development Association (IDA) of the World Bank Group in 2023 to finance the implementation of Social Protection Project.

The Social Protection Project will contribute to implement the government led “Aswesuma” program using the newly established social registry, finance a small-scale pilot economic inclusion program for a selected number of poor and vulnerable people in selected geographic areas and sectors and will finance activities to improve the accountability mechanisms for effectively delivering cash transfers and economic inclusion activities.

The project will also support to mitigate the impact of the economic crisis on the poor and most vulnerable through the provision of income support and livelihood opportunities, while strengthening the adaptability of the country’s social protection system. Accordingly, the project aims to strengthen the main building blocks of the social protection system, with a specific focus on digital payments, financial inclusion, integrated information systems and broader social protection reforms.

The relevant Loan Agreement for the Social Protection Project, amounting to USD 200 million was signed by Mr. K.M. Mahinda Siriwardana, Secretary to the Treasury, and Mr. Faris H.Hadad-Zervos, Country Director of the World Bank, on 21st  September, 2023 on behalf of the Government of Sri Lanka and IDA, respectively.

Providing Japanese Yen Five Billion (approximately USD 46 Million) Grant Assistance under Japanese Economic and Social Development Programme to Enhance Health Care Delivery System in Sri Lanka

As one of the main development partners, the Government of Japan extends its hands of friendship to Sri Lanka whenever help is needed. Accordingly, in the present economic crisis situation, the Government of Japan has donated Sri Lanka with various aids to ensure food security, quality of health care facilities, and the social well-being of the people. 

 “Ensure healthy lives and promote well-being for all at all ages” is one of the Sustainable Development Goals. Health is wealth. Better Health is the key to human happiness and well-being, and also a key influencing factor for the economic development of a country.

As the Sri Lankan healthcare delivery system is near the standards of developed countries, even in this economic crisis situation, maintaining health sector standards and providing an uninterrupted healthcare delivery system in Sri Lanka is a key target of the Government. However, it has become a challenge for the government to allocate limited financial resources to provide health services to the public without compromising the quality and efficiency of services.

Considering the above fact, The Government of Japan has agreed to provide the largest ever Grant Assistance received from Japan, amounting to Japanese Yen Five Billion (approximately USD 46 Million) under the Japanese Economic and Social Development Program to supply fuel (mainly Diesel) for the health care delivery system to ensure the essential and emergency health care services without disturbances.

Under this grant assistance, fuel (mainly Diesel) will be provided to satisfy the fuel requirement of the health sector in Sri Lanka covering 1188 Government hospitals, 1479 Ambulances (including 292 Suwa Seriya Ambulances), and 883 Electricity Generators of government healthcare institutions.  Under the prevailing economic situation, this grant assistance will be great patronage to maintain uninterrupted and quality healthcare service delivery, especially to the socially, economically, and geographically deprived population of the country.

The Exchange of Notes pertaining to the above grant was signed by Mr. K.M Mahinda Siriwardana, Secretary, Ministry of Finance, Economic Stabilization and National Policies on behalf of the GOSL, and His Excellency Mr. MIZUKOSHI Hideaki, Ambassador of Government of Japan with the honorable participation of His Excellency the President of the Democratic Socialist Republic of Sri Lanka on February 22, 2023, at the President Secretariat.

Ministry of Finance, Economic Stabilization, and National Policies
Colombo 01  
On February 22, 2023.