Significant increase in Japan's annual loan package to Sri Lanka

Japanese Foreign Minister, Taro Aso announced the 38th Yen loan package amounting to 39.2 billion Japanese yen offered by the government of Japan to Sri Lanka during his meeting with Senior Advisor to the President, Basil Rajapaksa, on February 19 in Tokyo.

Rajapaksa is currently on a visit to Japan on the invitation extended by the Japanese government. Minister Aso observed that Japan is pleased to announce a significant increase in the Japanese Government's annual loan package from 33 billion Japanese Yen (as indicated at the project appraisal stage) to 39.2 billion Japanese Yen, as an expression of Japan's confidence reposed in Sri Lanka government's development strategy elaborated in the "Mahinda Chinthana: Vision for a New Sri Lanka - 10 Year Horizon Development Framework 2006-2016".

The three projects to financed under the 38th Yen loan package comprise the Greater Colombo Urban Transport Development Project (Construction of Outer Circular Highway to the City of Colombo - Construction of the Road Section from Kottawa to Kadawatha including development of three townships); Water and Sanitation Sector Development Project - Phase 1; and Pro-poor Rural Development Project - SIRUP type (covering the four districts of Ampara, Hambantota, Badulla and Moneragala). Additionally, the Foreign Minister also announced that the Japanese government would be extending non-project grant aid to Sri Lanka amounting to Japanese yen 1.2 billion for the year 2007.

Foreign Minister Aso pledged Japan's support for the efforts made by the Sri Lanka government to defeat in all its manifestations, while emphasizing the need to seek a negotiated solution to the ethnic conflict to achieve a durable peace.

Rajapaksa briefed Minister Aso on the current status of the peace process including the multi-party and multi-ethnic initiatives launched by the Sri Lanka government within the framework of the All Party Conference and the Committee of Experts to develop a framework for constitutional reform incorporating a political solution to the conflict that would be acceptable to all communities in Sri Lanka.

Rajapaksa also apprised the Foreign Minister of the measures adopted by the Sri Lanka government to counter atrocities committed by the LTTE in the North and East as well as to safeguard the civilian population living in these areas, including measures adopted by the government for the speedy resettlement of IDPs. He reiterated the commitment of the Sri Lanka government to uphold democracy, human rights and the rule of law in keeping with international norms and mechanisms, while simultaneously making every effort to defeat terrorism.

Rajapaksa expressed the Sri Lanka government's appreciation of the role played by Japan as a co-chair in Sri Lanka's peace process, as well as the support extended by Japan towards international initiatives launched to curb the LTTE's clandestine financing and arms procurement activities conducted overseas.Rajapaksa renewed the invitation extended by former Foreign Minister in May 2006 to Foreign Minister Aso to visit Sri Lanka this year.

Rajapaksa also met with Japan's Senior Vice Minister for Foreign Affairs Katsuhito Asano; Japan's Representative on Peace Building, Rehabilitation and Reconstruction in Sri Lanka Yasushi Akashi; Member of the House of Representatives, President of the Japan-Sri Lanka Association and former Chief Cabinet Secretary Yasuo Fukuda; Member of the House of Representatives and Chairman of the Japan-Sri Lanka Parliamentary Friendship League Housei Norota; Assistant Chief Cabinet Secretary Hiroyasu Ando; and Member of the International Independent Group of Eminent Persons (IIGEP) Prof. Yozo Yokota, during the visit. Sri Lanka's Ambassador to Japan Ranjith Uyangoda, Director/Japan of the Ministry of Finance M. P. D. U. K. Mapa Pathirana and officials of the Sri Lanka Embassy were associated with the meetings.