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OPINION AUGUST 23, 2024 | The Indian Eye 10

Japan-Sri Lanka Recent

Bilateral Engagement:

An Overview

Japan’s decision to resume the suspended projects, including the development of Bandaranaike

International Airport’s (BIA) $383 million project, is an important push for bilateral relations that hit
a low during the Presidentship of Gotabaya Rajapaksa

DR. SAMATHA MALLEMPATI The Sri Lankan Government also cancelled the $500 million tripartite deal to develop the Colombo Port’s Eastern Container Terminal (ECT)
together with India (File photo)
ri Lanka and Japan established
diplomatic relations in 1952,
Sand Japan became a member of 120 projects. In 2022, after Sri Lanka Focus on Economic Recovery 2022. It has now emerged as the first
the Colombo Plan in 1954. plunged into the economic crisis, Ja- country to resume the suspended
Since then, Japan has been Sri pan provided a total of $104 million n this background, the decision projects after Sri Lanka signed the
Lanka’s long-time socio-economic in grant assistance, including $77.8 announced by Japan on 24th July Debt Treatment Agreement with Of-
development partner and has taken million in humanitarian assistance, I2024 that it will resume disburse- ficial Creditor Committee (OCC) in
a keen interest in Sri Lanka’s peace which was “the highest amount of ment to Yen Loan Projects in Sri July 2024.
building and reconciliation process. annual grant assistance provided by Lanka is a clear boost to the country’s Japan, as a co-chair of the OCC,
Over the years, it has also emerged Japan to Sri Lanka in its history”. economic recovery process, as it can also played an important role in the
as one of the largest bilateral credi- The year 2022 also marked the 70th also lead to more investments in var- conclusion of the agreement. Nearly
tors to Sri Lanka by providing about anniversary of the establishment of ious sectors by other external donors. 11 Japan-funded stalled projects are
$8.8 billion worth of Official Devel- diplomatic relations between the two Japan suspended its projects after Sri going to be restarted in the sectors,
opment Assistance (ODA) to nearly countries. Lanka declared bankruptcy in April Continued on next page... >>

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