Japan makes highest financial commitments to Sri Lanka in 2017
The Finance Ministry of Sri Lanka has reportedly stated that Japan has made the highest commitment out of the US$1,187.2 million pledged by foreign development partners and lending agencies for Sri Lanka’s public investment programmes in the eight months to August 2017.
According to reports, Japan’s commitment during this period of US$ 431.3 million was followed by India with $320.0 million, the World Bank with $220.5 million, China with US$ 58.0 million and European Investment Bank (EIB) with US$ 53.4 million).
The Finance Ministry’s Fiscal Management Report – 2018 has stated that the government entered into 24 financing commitment agreements with foreign development partners and lending agencies for development activities from 1st January to 31st August 2017.
This was reportedly to support the public investment program in-line with the macroeconomic targets set by Medium Term Macro Fiscal Framework: 2015-2018.
Of the total commitments made during this period, $1,020.2 million was made in the form of loans and $167.0 million was made as grants.
OSL take:
The confidence as well as support to the Sri Lankan government extended by the Japanese government is a positive signal since other foreign development partners and lending agencies would also consider lending monies for programmes initiated by the Sri Lankan government. Companies interested in entering the country through development projects could therefore canvas for funding support from foreign lenders without hesitation.
| Article Code : | VBS/AT/16112017/Z_5 |