Japan provides Rs.19,400 mn for three projects
DEVELOPMENT PROJECTS: The Japanese Government has pledged Japanese
Yen 21,559 million (approximately Rs. 19,400 million) to Sri Lanka under
its Official Development Assistance (ODA) loan scheme in support of
development efforts of the country.
In addition to the above, the Government of Japan has already
extended its support for the tsunami reconstruction and rehabilitation
activities by providing a loan of Japanese Yen 10,006 million (around US
$ 98 million) for Sri Lanka Tsunami-Affected Area Rehabilitation and
Take-off (STAART) project in June 2005.
This ODA loan scheme is extended on an annual basis and this is the
37th of such loan packages. The loans are offered on concessionary terms
and conditions and administered by the Japan Bank for International
The loan package consists of three projects. They are: (i) Galle Port
development Project - First Phase, (ii) Pro-Poor Eastern Infrastructure
Development Project and (iii) Tourism Resources Improvement Project.
These three projects are in lien with the needs identified by the
Government of Sri Lanka, aimed at accelerating economic growth and
providing essential infrastructure facilities.
Japanese Yen 14,495 mn (around Rs. 13,750 mn) is allocated for Phase
- 1 of the Galle Port Development Project.
The project is to develop the Port of Galle as a regional port by
constructing a new multipurpose terminal to meet the future demand and
reallocate break bulk cargo handling from the Colombo Port.
It will also help to reduce waiting time of the vessels, berth
occupancy ratio and cater to large vessels. Furthermore the project will
greatly facilitate the Southern area development plan presently being
The second loan of Japanese Yen 4,460 (around Rs. 3,950 mn) will be
used for the rehabilitation of part of the main highway in the Eastern
Province affected due to the tsunami disaster.
Under this project, it is expected to reconstruct the road section of
98 km between Akkaraipattu and Trikkandimadu on A 4 and A 15 roads
including the construction of a new Kallady Bridge with a length of 291
m, in Batticaloa, in order to improve the access within and outside the
The third loan of Japanese Yen 2,604 mn (around Rs. 2,320 mn) is
allocated for improvement of tourism resources. The loan is repayable in
20 years, inclusive of a grace period of six years and carries an
interest rate of 0.9% per annum.
The Project is to develop human resources and other related
infrastructure facilities in tourism sector in the areas of Colombo,
Kandy, Negombo, Sigiriya, Anuradhapura and Nuwara Eliya, in order to
promote foreign tourists and thereby enhancing employment opportunities
and foreign currency earnings.