In a recent meeting between Japan's Foreign Minister Hayashi Yoshimasa and President Ranil Wickremesinghe of Sri Lanka, crucial topics such as the Light Rail Transit (LRT) and East Terminal projects were discussed.

However, according to Sri Lankan journalist Ranga Sirilal, Japan's FM spokeswoman Yukiko Okano expressed skepticism over Colombo's efforts to revive these projects. She emphasized that no progress would be made until the debt restructuring is completed, making it imperative for Colombo to reach a debt deal with China.

Japan's FM Hayashi urged for "further progress" in Sri Lanka's debt restructuring initiatives, highlighting dissatisfaction with the slow pace of China's agreement on a moratorium on bilateral loans.

To access the second tranche of the IMF bailout, Colombo must secure a deal before the end of August. The debt deal with China holds the key to reactivating stalled projects and getting them back on track.