Japan provides 27 billion loan for SL

The Government of Japan extended a Yen Loan amounting to Japanese Yen 24,930 million (approximately Rs.27.4 billion) to Sri Lanka towards the National Transmission and Distribution Network Development.

The signing of the Exchange of Notes for the project took place between Fumio Kishida, Minister for Foreign Affairs of Japan and Mangala Samaraweera, Minister of Foreign Affairs of the Democratic Socialist Republic of Sri Lanka at the Ministry of Foreign Affairs, Japan on 19th June 2015.

The project intends to increase the steady electricity supply through expanding and improving the efficiency island - wide in transmission and distribution lines and thereby facilitate the economic growth of the country. Under the project, the existing transmission and distribution system will be developed by introducing low – loss power transmission and distribution lines and by constructing new substations in the areas of Western province including Greater Colombo, Central province and North central province.

Stabilizing the low cost power supply and improving basic power infrastructure are considered as key factors to combat the challenges in power supply reliability and energy efficiency of Sri Lanka. In this context, in 2012, the Government of Japan extended Japanese Yen 16 billion for the Greater Colombo Transmission Loss Reduction Project and also provided its technical assistance in preparing Power Sector Master Plan.

All projects under the Yen Loan scheme are in line with the development policies of the Government of Sri Lanka and are considered as of national importance in terms of facilitating social and economic development in the country. Japan hopes that these projects would enhance the long standing bilateral relationship between Japan and Sri Lanka and support overall development process to improve the living conditions of the people of Sri Lanka.