Rs. 1,380 million Japanese grant for two Lankan projects

COLOMBO: The Japanese Government has provided a grant of Japanese Yen 1,530 million (Rs. 1,380 million) for two projects under its grant aid programmes.

One grant amounting to Rs. 1,080 million is provided under the general non-project grant aid programme. The grant’s purpose is to contribute to the promotion of economic development efforts through balance of payment support.

This is the third grant offered under this programme to Sri Lanka by the Japanese Government. The grant’s proceeds will be used to import goods as agreed between the two Governments.

The proceeds of the previous grant of Japanese Yen 800 million offered in November 2004 have been used to import around 20,000 metric tons of fuel oil by the Ceylon Petroleum Corporation.

The second grant of Rs. 300 million is provided under the Japanese Food Production Programme. The grant’s proceeds will be used to purchase agricultural machinery and equipment which will help increase the productivity in the agriculture sector.

These machinery and equipment will be made available both to the under privileged farmers and also to the Department of Agriculture for its seeds production activities which in turn will facilitate improving the quality of agricultural produce of the targeted farmers.

The Japanese Government has been providing assistance under the Food Production Programme annually to Sri Lanka since 1977.

Part of the value of the goods imported under these grants will be deposited as counterpart funds in two separate special accounts which will be utilised to finance projects falling within the Ten Year Development Vision announced by the Government, promoting socio economic development in Sri Lanka.

The signing of exchange of letters to these grants took place at the Finance and Planning Ministry yesterday.

Ambassador of Japan in Sri Lanka Kiyoshi Araki signed the Exchange of Letters on behalf of the Japanese Government while Finance and Planning Ministry Secretary Dr. P.B. Jayasundera, signed on behalf of the Sri Lanka Government.