Sri Lanka gets Japanese loan for airport expansion

Sri Lankan Police forming a human chain in parliament to protect the Speaker and enable a vote.

Mar 28, 2012 (LBO) – Japan has given Sri Lanka a loan of 42 billion Yen (about 66 billion rupees) with the bulk of it meant for expanding the island’s sole international airport, a Japanese embassy statement said. “The loans under this scheme are offered on highly concessionary terms and conditions and are administered by Japan’s International Cooperation Agency,” it said.

About 45 billion rupees will be loaned for the second phase of the Bandaranaike International Airport Development Project to improve and modernize facilities and build a second passenger terminal.

This was aimed at coping with the increased air traffic and transforming the airport as a main commercial and business hub in the region, the statement said.

In 1999 Japan provided 12,384 million Yen for improving the facilities of the airport including the construction of a modern departure passenger terminal currently in use.

Japan will also loan 3,935 million Yen (about six billion rupees) for improving health facilities in the country.

This includes strengthening the drug production capacity of the State Pharmaceutical Manufacturing Corporation to resolve drug shortages in state hospitals, upgrading rural hospitals, an