Sri Lanka gets US$250mn in loans from Japan for power, roads

Mar 11, 2010 (LBO) – Sri Lanka will get 22.5 billion yen in loans (250 million US dollars) from Japan for hydro power, water supply and provincial road development in former war torn areas in the east, a government minister said. JICA will also loan 9,156 million yen (101 million US dollars) for 0rovincial and rural roads in the Central and Sabaragamuwa provinces. The loans will carry an interests rate of 1.4 percent a year and have a 30-year repayment period with 10-year grace.

The Japan International Co-operation (JICA) will loan 5,522 million yen (50 million US dollars) for the second stage of a hydro power complex in Upper Kotmale in Sri Lanka’s central hills, minister Gamini Lakshman Peiris told reporters.

The cabinet of ministers had given the nod to borrow the money at 0.2 percent annual interest. The loan is repayable in 40 years with 10 years of grace.

JICA is also loaning 4,950 million yet (54.9 million US dollars) for a water supply project and 3,965 million yen (43.9 million US dollars) for provincial and rural roads in the former war torn areas in the Eastern province.

The loan will carry an interest rate of 0.65 percent and will be repayable in 40 years with a 10 year grace period.