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Japan to finalise US $ 263.9 m loan for Lanka

from Shirajiv Sirimane in Japan


Foreign Minister Lakshman Kadirgamar is welcomed by his Japanese counterpart Yoriko Kawaguchi at the Foreign Ministry’s Likura guesthouse in Tokyo, yesterday. 
AFP

The Japanese Government will finalise their 36th yen loan to Sri Lanka to the value of US $ 263.9 million.

According to Foreign Minister Lakshman Kadirgamar, on an official visit to Japan, the formalities of the loan have already been approved.

"When I met the Minister of Foreign Affairs, Mrs. Yoriko Kawaguchi she confirmed this loan and requested her officials to speed this up," he said.

The loan would cover three key components. US $ 132 million had been allocated for small scale infrastructure development, rehabilitation and upgrading. The second section of the air package would cover Small and Micro industries and leaders and entrepreneur promotion projects for which US $ 87.4 million has been allocated.

The third component for which US $ 44.5 million has been allocated is for the phase two of the environmentally friendly solutions fund.

The Foreign Ministry has dispersed the money and work to expedite this is now being carried out by the Foreign Ministry, Kadirgamar said.

The Minister said that the Japanese Finance Minister, Sadakazu Tanigaki had already been briefed on the Sri Lanka Economic policy by Treasury Secretary Dr. P. B. Jayasundara.

The idea mooted by Kadirgamar to promote intellectual and cultural relations between the two countries, was also endorsed by the Japanese Finance Minister. "This is an area which had been neglected for a long time," he said.

Kadirgamar briefed Japanese Foreign Minister Yoriko Kawaguchi on the current peace situation in Sri Lanka.

"I told her that the government is very keen to resume peace talks," he said.

She said that the Japanese government was also very keen to see eternal peace in Sri Lanka as it would be very benifitial to the Lankan economy.

The Japanese Foreign Minister while endorsing the idea of promoting cultural and intellectual relations between the two countries, promised to provide assistance to host a Sri Lanka cultural show in Japan early next year.

Kadirgamar also thanked the Japanese Foreign Minister for allowing more Sri Lankan airline flights to operate to Japan. "This would help to increase tourism from the current 17,000 Japanese arrivals," he said.

Earlier, the Minister met the Japanese Business community and briefed them on the Sri Lankan constitution and the present political set up. The entire businessmen who attended the Luncheon had invested in Sri Lanka and said they were very happy to have invested in Sri Lanka.

The Japanese entrepreneurs were also keen on making more investments in Sri Lanka as they treat Sri Lanka as the gate way to enter India exploiting the FTA is already in place. They commended the Lankan labour force and their dedication and skill.

The businessmen were also said that the Sri Lanka war situation had been played out of proportion by the media and this was no problem for them.

The business community also expressed the view that the Aid pledged to Sri Lanka at the donor conference should not be held back due to the LTTE not coming to the negotiating table. "The aid was pledged for whole of Sri Lanka and the rest of Sri Lanka not effected by war should not be held responsible for it," they said.

They said Sri Lanka was now on a right track by focusing attention to the rural economic development and the SME sector.

Meanwhile, Kadirgamar said that he would brief the Japanese counterparts on the peace process. Speaking to the Daily News he said that the Japanese are very keen on the peace process in Sri Lanka.

"They want to know how the peace process is progressing and where Japan stands," he said.

Kadirgamar also urged Japan to provide promised aid to Sri Lanka now, rather than wait for peace talks with the LTTE to resume, a Japanese newspaper said on Thursday.

Japan pledged up to $1.0 billion in aid over three years at a donors conference in Tokyo in June 2003.

Kadirgamar, saying a "drive is on" to restart peace talks with the LTTE after a 17-month impasse, stressed that people in Sri Lanka needed aid now, the Asahi Shimbun said in its English edition.

"The fact that peace talks have been stalled should not lead to a situation where Japan withholds reconstruction assistance that it wants to give," he was quoted by the Asahi Shimbun . Kadirgamar, who met Japanese officials including Foreign Minister Yoriko Kawaguchi on Thursday, said he hoped Japan could try to work out "ways and means to unlock assistance", the newspaper said.

In a bid to revive the talks, the Sri Lankan government will set up a national advisory council to gather views from all political parties and civil and religious groups, Kadirgamar was quoted by the Asahi as saying.

"We will engage in a consultative process, which we feel is necessary for a durable solution," he said. The current administration would try to be more "inclusive" than the previous government in its decision-making, he added.

The Japanese government is already spearheading the rehabilitation drive in the North East in addition to helping the country in its economic drive.

The Minister also attended a dinner, which was hosted by the Special Representative of the Japanese government, Yasushi Akashi, at City Club of Tokyo last night.

Japan is the biggest donor of foreign aid to Sri Lanka and the Minister said that he would also focus on this area when he pays a courtesy call on Japanese Minister of Finance, Sadakazu Tanigaki. He said that Japan should not be treated only as an aid giving country or a business promotion partner.

Japan is one of the top three affluent countries in the world. It has a strong economy and plays a major role in the world. "We consider Japan to be a major power in the Asian region as well," he said.

Sri Lanka has been looking at Japan only in economic and development contexts all this time. Japanese people are think tanks and they have many intellectuals who would be of great help to Sri Lanka. "We have been neglecting this area and I am hoping to focus on it," he said.

The Minister said that he would invite some of these intellectuals to visit Sri Lanka and through the Bandaranaike Centre for International Studies, of which the Minister is the Chairman, their knowledge would be shared among the Sri Lankans. "I want to flag this segment, an area that was neglected," he said.

The Minister said that the Japanese language too should be learnt by more Sri Lankans and it would also help some of the businessmen. "I am happy to note that most of the young diplomats are fluent in Japanese," he said.

Similarly The Minister also hopes to focus more on the promotion of Culture and Buddhism. " I hope to work closely with the Minister of Tourism and the Cultural Affairs in this regard," he said.

The Minister said he would focus on promoting additional flights to Japan from Srilankan Airlines. "In addition, we are looking at conducting a major cultural exhibition depicting Sri Lankan cultural heritage in Japan, next year," he said.

Sri Lanka archaeological sites too could benefit from the Japanese and this area too would be pursued. "We must deepen our cultural ties," he said.

He said that Sri Lanka and Japan had been maintaining very close diplomatic ties. Sri Lanka and Japan are closely connected in many ways and Buddhism is one such area.

Japanese people also like Sri Lankans very much and they feel at home when they meet Sri Lankans. He said that the former President J.R. Jayewardene's speech at the 1951 San Francisco United Nations conference soon after the Second World War appealing to world leaders to remove restrictions on Japan too has helped to build stronger ties between two countries.

Minister Kadirgamar also made a presentation to a selected group of intellectuals and researchers at the Japan Institute of International Affairs, (JIIA) on 'Regional Integration and the South Asian Sub continent'.

He also answered many questions on the peace process, SAARC summit, BIMST-EC and the FTA with India.

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