In support of development projects:

Japanese Government provides Rs 48,730 mn

The Government of Japan has provided Japanese Yen 36,664 million (approximately Rs 45,830 million) to Sri Lanka under its Official Development Assistance (ODA) loan scheme in support of development efforts of the country.

Ambassador of Japan to Sri Lanka Kunio Takahashi and Finance and Planning Ministry Secretary Dr. P.B. Jayasundera exchanging agreements

In addition, a grant of Japanese Yen 2,298 million (approximately Rs. 2,900 million) is provided for development of the Jaffna Teaching Hospital.

This ODA loan scheme is extended on an annual basis and this is the 40th of such loan packages.

The loans are offered on concessionary terms and conditions and administered by the Japan International Cooperation Agency (JICA). Of the package, Japanese yen 22,956 million is offered at an interest rate of 0.65 percent per annum.

Japanese Yen 9,156 million and 4,552 million are offered at interest rates of 1.4 percent and 0.2 percent per annum respectively. More than two thirds of the loan package is repayable in 40 years including a grace period of 10 years.

The balance is repayable in 30 years including a grace period of 10 years. The loan package consists of four projects. They are; Provincial/ Rural Road Development Project, Eastern Province Water Supply Development Projects Kandy City Wastewater Management Project and Upper Kotmale Hydro Power Project (II).

Of this package, Japanese Yen 13,121 million (approximately Rs. 16,400 million)is allocated for Provincial/Rural Road Development Project. The project consists of two components.

The signing of exchange of notes pertaining to the 40th Yen loan package and the grant took place on Tuesday at the Finance and Planning Ministry.

The Ambassador of Japan to Sri Lanka Kunio Takahashi signed the Exchange of Notes on behalf of the Government of Japan while Finance and Planning Ministry Secretary Dr. P.B. Jayasundera signed on behalf of the Government of Sri Lanka.

The loan agreements and the grant agreement for the above projects were also signed by Finance and Planning Ministry Secretary Dr. P.B. Jayasundera and JICA Sri Lanka Office Chief Representative Akira Shimura on behalf of the Government of Sri Lanka and JICA respectively.