Press Releases

The public security in Sri Lanka was threatened by the Easter Sunday terrorist attacks with a huge negative economic impact on the fast growing tourism sector of the Country.As an immediate response to the incident,the Government of Japan has agreed to provide Japanese Yen 01 billion, (approximately Rs. 1.6 billion) grant under the Japanese Government’s non - project grant aid scheme for the provision of necessary equipment to strengthen the capacity of Sri Lanka Police and Airport and Aviation Services (Sri Lanka ) Limited on counterterrorism activities.

Accordingly, the necessary equipment for surveillance and detection will be provided by the Government of Japan to Sri Lanka Police and to the Airport and Aviation Services (Sri Lanka) Limited, through the Ministry of Defence and the Ministry of Transport and Civil Aviation respectively to ensure the public security and for the safety of air passengers.

The signing of Exchange of Notes pertaining to the above Grant Aid took place today, at the Ministry of Finance.

Dr. R.H.S. Samaratunga, Secretary, Ministry of Finance on behalf of the Government of Sri Lanka and H.E. Mr. Akira Sugiyama, Ambassador, Embassy of Japan in Sri Lanka on behalf of the Government of Japan signed the above Exchange of Notes.

Further refers to the Twitter Reply (@KSAembassylk) of the Royal Embassy of Saudi Arabia in Sri Lanka to the Statement made by the former Western Province Governor Dr. HemakumaraNanayakkara alleging that the Kingdom of Saudi Arabia is providing loans for Muslims through local Banks.

We would like to inform that, development partners of the Middle East region have been playing a significant role in economic development in Sri Lanka by providing concessional financing facilities taking into account the development priorities of the country.

Especially, the cooperation between the Government of Sri Lanka and the Kingdom of Saudi Arabia was initiated with extending a loan of US$ 30 million for Second Water Sector & Sewerage project in 1981 through the Saudi Fund for Development.

The concessional and fixed financial terms (2% per annum), longer maturity (25 years repayment period with 5 years grace period) as well as the flexible conditions are more profitable to the country.

Ongoing and pipe line projects funded by the Saudi Fund for Development are mutually determined based on the government request.The Saudi Fund for Development has providedconcessional financing for the following projects and we strongly believe that these projectsaresignificant milestones of the relationship between our two countries.

Moreover, we would like to extend our appreciation to the people of the Kingdom of Saudi Arabia for continued close collaboration and for the very cordial partnership and support extended to Sri Lanka in implementing development projects for the benefit of the people of Sri Lanka.

Department of External Resources

Ministry of Finance

Colombo 01

Sri Lanka

On 26th July 2019

The Government has mobilized Loan assistance amounting to USD 160 million from the Asian Development Bank (ADB) to cater to the increasing demand of the Railway Sector through modernization of the railway operations and thereby improving the efficiency of services provided by Sri Lanka Railways.

The total estimated investment cost of the Project is USD 192million and the Government contribution to the project will be USD 32million.

The Railway Efficiency Improvement Project, which is initial investment of a long term sector development plan, will finance the modernization of the country’s railway system in several aspects by improving the operations, maintenance, safety, skills development, and technical capacity of Sri Lanka Railways. The project will provide a modern multichannel—paper, mobile, and smart card—ticketing system, and will also install a state-of-the-art telecommunications system, which will replace the original system installed in 1985. The new telecommunications system will reduce train delays by facilitating two-way communication with train drivers. The project will also finance a new operations headquarters and train control center, provide infrastructure and equipment for the maintenance of track and rolling stock, and improve railway safety. The technical training center of Sri Lanka Railways will also be upgraded under the project and new courses will be developed to provide future graduates with knowledge of modern railway technologies.

In this connection, Dr. R H S Samarathunga, Secretary to the Ministry of Finance on behalf of the Government of Sri Lanka and Ms. Manjula Amarasinghe, Officer In Charge of ADB Sri Lanka Resident Mission on behalf of ADB, signed the Loan Agreement to obtain USD 160 million on 20^th August 2019 at the Ministry of Finance.  

PRESS RELEASE

The First Two Sri Lankan Projects Funded by the Asian Infrastructure Investment Bank

The loan agreements for the first two projects financed by the Asian Infrastructure Investment Bank (AIIB) were signed between the Government of Sri Lanka and the AIIB on 25 April 2019 in Beijing, People’s Republic of China. The Vice President and Chief Investment Officer of AIIB Dr. D J Pandian signed on behalf of the AIIB, and H E the Ambassador of Sri Lanka in Beijing, People’s Republic of China, Dr. Karunasena Kodituwakku signed on behalf of the Government of Sri Lanka.

1.       Reduction of Landslide Vulnerability by Mitigation Measures Project

The total project cost of Reduction of Landslide Vulnerability by Mitigation Measures Project is estimated at USD 110 million. The objective of the proposed project is to reduce risk and damage from landslides through the implementation of physical mitigation measures and enhancement of policy and regulation associated with landslide management. The project will include field investigations, detailed designs, construction works and construction supervision/management activities for the landslide mitigation measures for prioritized 147 sites in 10 selected districts.

The AIIB, which is a multi-lateral bank has agreed to finance this project through a loan facility of USD 80 million. The GOSL will provide USD 30 millionwhich will cover the relevant taxes and cost of initial design and investigation works. This project will be implemented by National Building Research Organization (NBRO) under the supervision of Ministry of Public Administration and Disaster Management.

2.       Support to Colombo Urban Regeneration Project

The Support to Colombo Urban Regeneration Project will support the continued implementation of Urban Regeneration Project Phase III, which is currently being implemented by the Government.  The total project cost of Support to Colombo Urban Regeneration Project is estimated at USD 287 million. The objectives of this project are to improve the housing conditions of low-income communities and increase land use efficiency in Colombo through investments in the construction of affordable housing and redevelopment of land, along with the associated enhancement of systems and policies.

The AIIB has agreed to finance this project through a loan facility of USD 200 million. The GOSL will provide USD 82 millionwhich will cover the relevant taxes and cost of initial design and investigation works. The balance USD 5 million will be provided through a private partner. This project will be implemented by Urban Development Authority (UDA) under the Ministry of Megapolis and Western Development.

Issued by the Department of External Resources on 30^th April 2019.