Press Releases

The Japan-Sri  Lanka  Economic  Cooperation   Policy  Dialogue   - 2024 was held on January  05, 2024, at the Ministry of Finance in Colombo. The forum was in order to exchange views on matters pertaining to the Japanese-funded project portfolio, explore future developments,    and  prospective economic   cooperation   between Japan  and Sri Lanka  going forward.   The Japanese   delegation   was led  by Mr. Endo Kazuya,    Director-General,     International    Cooperation   Bureau,   Ministry   of Foreign Affairs   of Japan.    Mr. K. M.  Mahinda  Siriwardana,    Secretary,  Ministry   of Finance, Economic  Stabilization     and  National     Policies    and  Mr. Endo  Kazuya,  Director    - General,    Co-Chaired    the meeting  along   with   both relevant   government   officials.

At   the  discussion,     Secretary,    Ministry    of  Finance,   Economic   Stabilization     and National  Policies  expressed  his  warm  gratitude  and appreciation   for the continuous support   extended   by  the  Government    of Japan   towards  Sri   Lanka  throughout history.    He  made  special    reference   to Japan's   recent  assistance   across  a  broad spectrum    of  initiatives,     including    the  debt  restructuring    process,   and   the  IMF supported      macroeconomic     reform    programme,     which      have    been    crucial components   of Sri  Lanka's  ongoing  recovery  from its worst economic crisis  in post• independence   history. 

The Secretary also explained   the implementation    status of various macroeconomic reforms   and the debt   restructuring     process.   He emphasized   Sri Lanka’s   firm commitment   to ensure comparability   of treatment   between  all  holders  of external debt   from   the   outset   of  this   process.   The   Secretary    reiterated    Sri  Lanka's commitment to implementation    of governance   related  reforms,  underpinned  by a number  of ongoing  legislative   and institutional  measures.

In Response,  DG Endo  expressed  his appreciation    for Sri Lanka's  efforts to recover from   the  economic   crisis  and   shared   his  expectations    of  a  speedy   recovery. Furthermore,    he  outlined   his  appreciation    of  the  government's   commitment   on continuing   the  economic   reforms  supported    by  the IMF programme.   DG Endo reiterated  the importance   of the early completion   of signing  of a Memorandum   of Understanding     (MoU)    on   debt   restructuring     between    the   Official    Creditor Committee  (OCC)  and  the Sri  Lankan  government,   as well  as the need  to ensure transparency   and comparability     in agreements   with creditors   outside  the OCC.

The two sides also exchanged views   on Japan's   future   economic cooperation  with Sri Lanka,   including    the  existing   Yen  loan  projects,  to stabilize   and  reinforce  Sri Lanka's   economy   as  well  as  overcome   its  socio-economic challenges.    DG Endo stated   that Japan  will  continue   to provide  support  to the people  of Sri Lanka to help the country   fully  recover  from the economic  crisis   as soon  as possible   and return  to a path of progressive   development.Mr.  Siriwardana    requested   future   cooperation    from  the  Goverrnnent   of Japan including   the existing    Yen  loan  projects as a catalyst  to attract  further  investment, along  with  technical   and financial   support   for the  ongoing   reforms associated    with the  IMF  programe.    He further   outlined    the investment    climate   that Sri   Lanka intends   to build   and   invited    Japanese    investors    to   actively    evaluate    potential investments in Sri Lanka.

Ministry of Finance, Economic   Stabilization     and National   Policies
Colombo   01
On January   05, 2024

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.

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.