The Prime Minister of Japan has suggested ministerial level consultations between Sri Lanka and Japan on oil and gas exploration by Japan in Sri Lanka and on the settlement of loans from Japan to Sri Lanka.

The Japanese Prime Minister Yasuo Fukuda made this suggestion when he met President Mahinda Rajapaksa on the sidelines of the World Conference on Food Security convened by the Food and Agricultural Organization (FAO) at Rome, yesterday (June 03).

Discussions between Prime Minister Fukuda and President Rajapaksa covered political and economic issues in Sri Lanka. The Japanese leader expressed satisfaction at the successful conduct of the elections to the Eastern Provincial Council, and indicated that assistance for development of the Eastern Province would be given high priority by the Japanese Government. He said a Japanese Yen 17 million package is being extended to Sri Lanka for development work and assistance in natural disasters.

President Rajapaksa explained the progress in re-establishing democracy in the Eastern Province and the significant transformation taking place there to restore normalcy after two decades under terrorism. The two leaders also discussed the Human Rights situation in Sri Lanka when President Rajapaksa explained the action taken by the Government to address Human Rights issues. He proposed the participation of Japan in oil and gas exploration in Sri Lanka, where certain blocks have already been allocated to some countries, and also broached the matter of the settlement of loans provided by Japan to Sri Lanka.

The Sri Lankan President thanked Japan for the the generous assistance extended over the years that would help social and economic development of the country, to provide peace and stability particularly in the North and East of Sri Lanka country; and for the 39th Yen loan package given by the Government of Japan to Sri Lanka for the year 2008/9.