Japan has decided to make immediate disbursements of suspended loans, making it the first country to do so after Sri Lanka reached an agreement to restructure official debt, Ambassador Mizukoshi Hideaki said.
Yuri ide, Senior Representative of the Japan International Corporation Agency Sri Lanka office said the decision was taken by Japan to make immediate disbursement instead of waiting for new agreement to be singed in line with the debt restructure.
The decision to make immediate disbursements was showed the confidence in Sri Lanka’s economy and it will also support cashflows and interest rates, Treasury Secretary Mahinda Siriwardana said.
Director General of External Resources Ajith Abeysekera said the move will result in the immediate disbursement of 75 million dollars of pending contractor bills in the next few week.
The were about 1.1 billion dollars of committed but undisbursed fund for 11 projects, in power, healthcare, rural infrastructure and an airport terminal.