The Government of Japan has decided to grant a US$90 million concessionary loan (Rs.10 billion) to implement Sri Lanka’s development policies.

The declaration with regard to the Rs.10 billion loan was handed over to Finance Minister Ravi Karunanayake by Japanese Ambassador to Sri Lanka Kenichi Sugama at the Ministry of Finance yesterday (July 30).

The Japanese Government has decided to grant this loan to Sri Lanka to enable the island to implement the development proposals made by its Budget 2016.

This loan, according to the Finance Ministry, should be repaid within 25 years and, a seven year grace period has been given to start repayment.  Sri Lanka has to pay only 1.4% interest for this Rs.10 billion loan.

This is the first time in diplomatic history of the two countries that Japan granted a loan of this kind to Sri Lanka, the Ministry said in a statement today.

Minister Ravi Karunanayake said Japan has granted this huge concessionary loan as a result of the recent official visits to Japan by President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe. The Minister also said that monetary assistance of this nature extended by Japanese government is testimony to the confidence kept in Sri Lanka by the International community.

“A country cannot be developed without obtaining loans.  But we should use such loans for the benefits of the people instead squandering them for personal comfort. We want to rebuild this sluggish economy. We told in the past that we would find necessary funds for development. Today you can see such predicted money is coming our way. Therefore we intend to share the development with all the people living at every corner of the island.  Those who clamored in the past and questioned us our farsighted development agendas are marching the streets today in fearing of such predicted funds have been reaching us from round the world”, Minister Karunanayake said.