The Government of Japan extended the 42nd Yen Loan Package amounting to Japanese Yen 42,477 million (approximately Rs. 66 billion) to Sri Lanka towards three key projects aimed at facilitating the social and economic development initiatives in the country.
Under the projects financed under the loan scheme, Bandaranaike International Airport will be provided to improve and modernize the facilities at a cost of Rs. 45 billion. The development work will be carried out under the Bandaranaike International Airport (BIA) Development Project (Phase 2).
Project for Improvement of Basic Social Services Targeting Emerging Regions 3,935 million Yen (approximately Rs. 6 billion) will be provided for improving health facilities in the country including strengthening the drug production capacity of the State Pharmaceutical Manufacturing Corporation (SPMC) by construction/refurbishment of the building and installing modern machinery for resolving the drug shortages in state hospitals. This will also upgrade facilities of secondary hospitals in Central, Sabaragamuwa, North Western and Eastern Provinces to function as core hospitals and provision of around 125 ambulances to rural hospitals.
Habarana Veyangoda Transmission Line Project9,573 million Yen (approximately Rs. 15 billion) will be provided for the construction of the 220 KV Transmission Line from Habarana to Veyangoda to improve the stability and reliability of the transmission system, to cater to the growing demand of electricity in the country, and to increase efficiency in the power sector.
The signing of the Exchange of Notes for the Yen Loan took place on March 28th at the Ministry of Finance and Planning between H.E. Mr. Nobuhito Hobo, Ambassador of Japan on behalf of the Government of Japan and Dr. P.B. Jayasundera, Secretary, Ministry of Finance and Planning on behalf of the Government of Sri Lanka.