Japan backs SL's recovery, commits loans, investment and export push

JAPAN and Sri Lanka agreed to deepen cooperation across economic, investment, security and multilateral fronts, issuing a joint statement yesterday after President Anura Kumara Disanayake’s meeting with Japanese Prime Minister Shigeru Ishiba in Tokyo.

- 

Ishiba commended Sri Lanka’s recovery path under the International Monetary Fund (IMF) program and debt restructuring, pledging continued Japanese support. As co-chair of the Official Creditor Committee, Japan was the first to conclude a bilateral restructuring deal with Colombo earlier this year.

Both sides agreed that steady implemen tation of reforms and early completion of debt restructuring are critical to restoring investor confidence and underlined the need for foreign loans consistent with debt sustainability.

Economic cooperation featured prominently.

Japan resumed 11 previously signed yenloan projects in 2024, including transmis sion lines and digital television infrastructure.

Both leaders welcomed the recommencement of bidding for the second phase of the Bandaranaike International Airport expansion and pledged to expedite completion.

They also signed notes on grant aid to boost productivity in the dairy sector and agreed on the importance of transport solutions to ease congestion in Colombo and other major cities.