Japan gives Rs 66 b loan package
The Japanese government extended the 42nd Yen Loan Package amounting
to Japanese Yen 42,477 million (Rs 66 billion) to Sri Lanka towards
three key projects aimed at facilitating the social and economic
development initiatives in the country.
The loans under this scheme are offered on highly concessionary terms
and conditions and are administered by Japan’s International Cooperation
Agency.
In January 2011 Japan provided Yen seven billion (approximately Rs
9.3 billion) towards the “Emergency Natural Disasters Rehabilitation
Project” to rehabilitate flood affected areas. This amounts to
approximately 50 billion Japanese Yen provided as loans, the largest
provided during a fiscal year to Sri Lanka so far. The details of the
projects financed under the loan scheme are as follows:
Yen 28,969 million (Rs 45 billion) will be provided to improve and
modernize the facilities of the Bandaranaike International Airport (BIA)
and construct a second passenger terminal to cope with the increased air
traffic
and transform the airport as a main commercial and business hub in
the region. In 1999 Japan provided Yen 12,384 million for improving
airport facilities including among others the construction of a modern
departure passenger terminal currently in use.
3,935 million Yen (approximately Rs. 6 billion) will be provided for
improving health facilities in the country including (a) strengthening
the drug production capacity of the State Pharmaceutical Manufacturing
Corporation (SPMC) by construction/refurbishment of the building and
installing modern machinery for resolving the drug shortages in state
hospitals, (b) upgrading facilities of secondary hospitals in Central,
Sabaragamuwa, North Western and Eastern Provinces to function as core
hospitals, (c) provision of around 125 ambulances to rural hospitals. In
1985, Japan provided a grant of Yen 1.9 billion to construct and equip
the drug manufacturing facility for producing essential drugs at low
cost.
Yen 9,573 million (Rs 15 billion) will be provided for the
construction of the 220 KV Transmission Line from Habarana to Veyangoda
to improve the stability and reliability of the transmission system, to
cater to the growing demand of electricity, and to increase efficiency
in the power sector. These three projects are in line with the needs
identified by the government. This year Japan and Sri Lanka commemorate
the 60th anniversary of the establishment of diplomatic relations and
these projects are symbolic in terms of Japan’s long-term cooperation in
Sri Lanka’s overall development process and strengthening the bonds of
goodwill between the two countries.
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