JICA pledges to continue aid to Lanka, shifting from earlier focus

Japan International Cooperation Agency (JICA) pledges to continue its financial assistance to Sri Lanka shifting from basic infrastructure development to disaster management, health, education and per capita improvement areas, JICA officials said. Hiromi Ao, JICA’s Chief Representative in Sri Lanka made these comments to the Business Times on the sidelines of a media conference convened to announce the 43 rd Yen Loan Package of Yen Million 41.07 billion for four projects in the country. He said that Sri Lanka is now a middle income coun- try with per capita income of over US$ 2,900 and JICA will have to shift its earlier focus to suit the present circumstances.

Referring to the status of recovery of loans given by the Japan lending agency to Sri Lanka so far he disclosed that a sum of Yen 337 billion was still outstanding. Sri Lanka has repaid Yen 557 billion out of the JICA’s total committed cumulative loan of Yen 889 billion provided for 110 project loans and 15 commodity loans at very concessionary terms.

“Our interest rates were very low ranging between 0.01 per cent and 1.4 per cent whereas Chinese loans were given at the rate of 3 to 4 per cent and very short repayment period,” he added.

Senior JICA Representative Tesuji Iida said that development assistance was extended through three primary aid instruments, namely concessionary loans (ODA Loans), Techni- cal Cooperation and Grant Aid. It was based on development priorities in keeping with the policies of the Sri Lankan government, while maintaining a relative balance among sectors and regions.

The 43rd Yen Loan Package, signed this week for Yen Million 41,107, was for four projects entered into with the Ceylon Electricity Board, Road Development Authority ( two agreements) and the National Water Supply and Drainage Board.

They include the Greater Colombo Transmission & Distribution Loss Reduction Project, the Major Bridges Construction and Landslide Projects of the National Road Network and the Anuradhapura North Water Supply Project.

JICA’s 30 year continuous contribution to Sri Lanka’s development efforts in providing both financial and technical support is further exemplified by the latest loan package.