JAPAN GRANTS US$ 90 M CONCESSIONARY LOAN TO SRI LANKA

The Government of Japan has decided to grant a US$90 million concessionary loan (Rs.10 billion) to implement Sri Lanka’s development policies.

The declaration with regard to the Rs.10 billion loan was handed over to Finance Minister Ravi Karunanayake by Japanese Ambassador to Sri Lanka Kenichi Suganuma at the Ministry of Finance Saturday (30).

The Japanese Government had decided to grant this loan to Sri Lanka to enable the island to implement the development proposals made in its Budget for 2016.

This loan would have to be repaid within a 25-year period with a seven year grace period. The loan comes with low interest of 1.4%.

This is the first time in the history between the two countries that Japan had granted a loan of this kind to Sri Lanka.

After handing over the document of declaration with regard to this loan to Finance Minister Ravi Karunanayake, Japanese Ambassador Kenichi Suganuma said that this loan has been granted as assistance to Sri Lanka to continue its sustainable development goals. He also said that they expected

A country cannot be developed without obtaining loans. But we should use such loans for the benefits of the people instead squandering them for personal comfort. We want to rebuild this sluggish economy. We promised that we would find the funds necessary to develop this country

the granting of this loan to strengthen the diplomatic relations that exists between Sri Lanka and Japan.

Meanwhile Finance Minister Ravi Karunanayake said Japan’s decision to grant such a loan at concessionary terms was the goodwill that had been built as a result of the recent official tours to Japan by President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe. The Minister also said that monetary assistance of this nature extended by Japanese government is clear evidence of the confidence placed in Sri Lanka by the International community.

Finance Minister Karunanayake further expressed his views in this manner:

“A country cannot be developed without obtaining loans. But we should use such loans for the benefit of the people instead squandering them for personal comfort. We want to rebuild this sluggish economy. We promised that we would find the funds necessary to develop this country. Today you can see this becoming a reality. Therefore we intend to share the fruits of development with the people of this nation. Those who clamoured in the past and questioned our farsighted development agendas are marching on the streets today, fearing that we will keep our word to the people to bring about development in the country,” Minister Karunanayake said.