Economy

Japan Officially Notifies Sri Lanka of Its Decision to Resume Disbursement to Yen Loan Projects

Published

2 years ago

July 25, 2024

Following the completion of the signing of Memorandum of Understanding (MOU) between the Official Creditor Committee (OCC) and Sri Lanka on 23 July and the expression of the willingness by the Government of Sri Lanka to swiftly conclude a bilateral agreement on debt restructuring, the Government of Japan has officially decided to resume disbursement to Yen Loan Projects, which had been suspended since the default of Sri Lanka in 2022.

On 24 July, the Government of Sri Lanka, the Embassy of Japan and Japan International Cooperation Agency (JICA) Sri Lanka Office held a joint press conference to inaugurate this milestone decision at Ministry of Treasury.

While congratulating the completion of the MOU on debt restructuring between Sri Lanka and the OCC, Ambassador MIZUKOSHI Hideaki highlighted the unprecedented initiative and outstanding contribution by the Government of Japan, as a co-chair of the OCC, in leading and concluding the public debt restructuring.

Ambassador MIZUKOSHI also commended Sri Lankan authorities for their ongoing efforts in implementing the comprehensive economic and social reforms essential to guide the country back to a sustainable path. He stated that all the suspended yen loan projects are crucial infrastructures that promote Sri Lanka’s economic growth and further reaffirmed Japan’s continuous and unwavering commitment to supporting Sri Lanka.

On behalf of Mr. YAMADA Tetsuya, Chief Representative of JICA Sri Lanka Office, Ms. IDE Yuri, Senior Representative, handed over the official letter on this decision to Mr. Mahinda Siriwardana, Secretary to the Treasury, which is addressed to Hon. President Wickremesinghe from Dr. TANAKA Akihiko, President of JICA.

Ms. IDE Yuri expressed her hope that the resumption of Yen Loan Projects will contribute to stabilizing the economy and society of Sri Lanka and help gain momentum toward long-term sustainable growth, thus paving the way for Sri Lanka to recover trust and confidence from the people and private businesses of both Sri Lanka and the world.

Secretary Siriwardana expressed his profound gratitude for this decision and sincere appreciation for Japan’s excellent initiative and long-term dedication in the debt restructuring. It is hoped that the resumption of disbursement to Yen Loan Projects would further strengthen the bond between Japan and Sri Lanka, as well as help this island nation bring itself back on track for further economic development, serving as a hub in the Indian Ocean.

Economy

Sri Lanka’s official reserves fall below US$ 7 billion

Published

3 hours ago

May 10, 2026

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Sri Lanka’s official reserve assets fell below the US$ 7 billion mark again in April 2026, according to the latest data released by the Central Bank of Sri Lanka.

The country’s total official reserve assets declined from US$ 7.026 billion recorded at the end of March 2026 to US$ 6.759 billion by the end of April.

Data also showed that foreign exchange reserves — the main component of official reserves — dropped from US$ 6.8 billion to US$ 6.505 billion during the month.

Meanwhile, Sri Lanka’s gold reserves declined slightly from US$ 222 million to US$ 219 million.

Economy

PayPal to launch in Sri Lanka from May 15

Published

2 days ago

May 8, 2026

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PayPal is set to launch in Sri Lanka on 15 May, in a move expected to expand formal digital payment channels, initially starting with business-to-business (B2B) payments to exporters.

According to sources, the initial rollout will focus on enabling inward payments to exporters, with several local banks already appointed as agents for the service.

While an official announcement is yet to be made, sources said the launch is currently scheduled for 15 May, with the Presidential Secretariat likely to host the event.

Banking sector officials have already participated in familiarisation sessions relating to PayPal’s entry into Sri Lanka, while PayPal representatives are understood to have visited the country last month for discussions with local stakeholders and financial institutions regarding the rollout framework.

The move follows months of engagement between the Government, the Central Bank of Sri Lanka (CBSL), and the private sector, aimed at enabling regulated inward remittance functionality through the global online payments platform.

In February, Digital Economy Ministry Secretary Waruna Sri Dhanapala said Sri Lanka had entered the final stage of enabling inward remittances through PayPal, describing it as a key milestone in modernising the country’s digital payments ecosystem.

Economy

Sri Lanka tests online ticket booking platform or intercity bus travel

Published

5 days ago

May 5, 2026

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Sri Lanka has launched a pilot programme to enable online seat reservations for long-distance bus travel, Transport and Highways Minister Bimal Rathnayake announced today.

Speaking at a media briefing, the Minister said buses remain the most widely used mode of daily transport in the country, even surpassing trains in popularity.

However, he noted that passengers currently face inconvenience as they must physically visit bus terminals to reserve seats, making travel planning difficult.

“This new system will allow passengers to reserve seats in advance and plan their journeys more efficiently. Our aim is to make daily life easier,” he said.

The initiative will initially be implemented through private bus operators, with plans to expand the service to the Sri Lanka Transport Board (SLTB) at a later stage.

Sri Lanka Telecom Chairman Mothilal De Silva stated that the platform was introduced ahead of the New Year holiday period in collaboration with several private sector partners.