pledges Rs. 19.4 b support
Finance Ministry said yesterday that the Government of Japan has
pledged a sum of 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.
Ambassador Akio Suda shakes hands with Secretary to the Treasury
Dr. P.B. Jayasundera yesterday whilst presenting the pledge
for future funding.
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 (approximately
US$ 98 million) for Sri Lanka Tsunami Affected Area Rehabilitation
and Take-off (STAART) Project in June 2005.
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
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.
3 projects are in line with the needs identified by the Government
of Sri Lanka, aimed at accelerating economic growth and providing
essential infrastructure facilities.
Yen 14,495 mn (approximately Rs. 13,750 mn) is allocated for Phase
- I of the Galle Port Development Project. The loan is repayable
in 30 years, inclusive of a grace period of 10 years and carries
an interest rate of 0.3% per annum. 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 implemented.
following activities are expected to be carried out under the project:
Construction of a Breakwater; Construction of a Multipurpose Terminal
(1 berth); Dredging of the Approach Channel & Turning Basin
and Procurement and Installation of Auxiliary Equipment and Navigation
Aid required for Modern port facilities.
second loan of Japanese Yen 4,460 (approximately 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. The loan
is repayable in 40 years, inclusive of a grace period of 10 years
and carries an interest rate of 0.75% per annum. 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
Eastern Region. It is also expected to provide training programmes
on Operation and Maintenance of Construction Equipment to the local
communities by the Institute for Construction Training & Development
third loan of Japanese Yen 2,604 mn (approximately Rs. 2,320 mn)
is allocated for improvement of Tourism Resources. The loan is repayable
in 20 years, inclusive of a grace period of 6 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.
The project also envisages to conduct Marketing and Promotional
activities in Japan to promote Sri Lanka as an attractive tourist
project will be executed by the Ministry of Tourism with the involvement
of a number of implementing agencies i.e. Sri Lanka Tourist Board,
Central Cultural Fund, Road Development Authority, Provincial Road
Development Authority and the Municipal Councils of Anuradapura,
Negombo and Nuwara Eliya.
Ambassador Akio Suda conveyed the official pledge to Finance Ministry
Secretary Dr. P B Jayasundera yesterday. Deputy Secretary to the
Treasury R A Jayatissa and Counselor of the Embassy of Japan H.
Onishi also participated at this occasion.