Posted by Editor on March 7, 2025 – 5:52 pm
Sri Lanka and Japan took a significant step in the External Debt Restructuring Process today (March 7) with the signing of the Exchange of Notes between the two governments and the Amendment Agreement with the Japan International Cooperation Agency (JICA).
The event took place at the Ministry of Finance premises.
The Exchange of Notes was signed by Mahinda Siriwardana, Secretary to the Ministry of Finance, Planning, and Economic Development, on behalf of the Sri Lankan Government, and Ambassador of Japan to Sri Lanka, Akio Isomata, representing the Japanese Government.
Additionally, the bilateral Amendment Agreement was signed by Secretary Siriwardana and Tetsuya Yamada, Chief Representative of JICA.
Speaking at the ceremony, Secretary Siriwardana emphasized that this is the first restructuring agreement signed with a member country of the Official Creditor Committee (OCC), marking a crucial milestone in Sri Lanka’s debt restructuring efforts.
He highlighted Japan’s critical role in co-chairing the OCC alongside France and India, demonstrating strong leadership and commitment to assisting Sri Lanka in achieving economic recovery.
He also expressed gratitude for Japan’s decision to resume financial disbursements soon after the OCC Memorandum of Understanding was signed on June 26, 2024. This move reflects Japan’s confidence in Sri Lanka’s economic reforms and enables the continuation of essential development projects.
“Sri Lanka has come a long way since mid-2021, but the journey toward full economic recovery is far from over. While we appreciate the support from partners like Japan, it is crucial to maintain disciplined economic reforms and avoid past mistakes,” Siriwardana stated.
The Department of External Resources, issuing a statement, noted that the agreements reinforce Sri Lanka’s commitment to concluding the restructuring process promptly, restoring debt sustainability, and revitalizing the economy.
The agreements also serve as a testament to the enduring and deep-rooted bilateral ties between Sri Lanka and Japan.
Japan has been a longstanding development partner of Sri Lanka, providing concessional loans, grants, and technical assistance. Today’s agreements further strengthen this cooperation, paving the way for continued mutual benefits and sustainable economic growth.
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