Japan gives Rs. 1,380m for Lankan projects

COLOMBO: Japanese Government has provided a grant of Japanese yen 1,530 million (Rs. 1,380 million) for two projects aiming at socio economic development of the country. Out of this total amount, Japanese yen 1,200 million was provided under the “Non-Project Grant Aid” Programme (NPGA) and the balance Japanese yen 330 million was extended under the scheme, “Grant Assistance for Under Privileged Farmers”.

The grant provided under the “Non-Project Grant Aid” is to facilitate the sustainable economic development initiatives of the Sri Lankan Government.

This grant will be utilised for economic structure reforms, mitigation of balance of payment difficulties and for poverty reduction through rural development projects mutually agreed between the two governments. The grant will also be used to import goods and materials for further promotion of projects implemented under the grant.

This is the third occasion that a grant has been offered under this programme to Sri Lanka since 2004. In addition, another special grant under the same scheme was extended following the tsunami, for relief, rehabilitation and reconstruction efforts in affected areas.

The second grant was extended under Japan’s “Grant Assistance for Under-privileged Farmers” formally known as 2KR for Increase of Food Production.

The Japanese Government established the 2KR scheme in 1977, and in the same year, extended this grant to Sri Lanka. The Japanese Government has provided more than 44.8 billion yen (Rs. 41 billion) under this grant aid scheme to purchase essential agricultural machinery, equipment and fertiliser.

This year,the grant funds will be utilised to procure agricultural machinery and equipment to promote rural development and poverty reduction. These machinery and equipment will be distributed to Agrarian Service Centres throughout the country to be made available for under privileged farmers to carry out their farming activities.

Half of the value of these goods imported under both grants will be deposited in two separate special accounts and will be utilised to finance socio-economic development projects to achieve well-balanced economic growth as mutually agreed upon between the two countries and with mutual consent of the two countries.

The Exchange of Notes for the provision of these two grants took place at the Ministry of Finance and Planning on March 9. Kiyoshi Araki, Ambassador of Japan and Dr. P.B. Jayasundera, Secretary, Ministry of Finance and Planning signed the Exchange of Letters.