Think Again

The Japan Bank for International Co-operation (JBIC) said Monday that it will not participate if a Trust Fund is set up to direct reconstruction aid to the North The Japan Bank for International Co-operation (JBIC) said Monday that it will not participate if a Trust Fund is set up to direct reconstruction aid to the North All donors including JBIC are in talks with the government and the LTTE on how best to channel aid funds to rebel held areas in the North and East.

But Japan’s prime lending agency said on Monday that it will reserve its final position until talks are over but as at right now it is negative on contributing to a common fund.

“Japanese assistance to the North and East is largely based on the agreements between the Japanese government and the government of Sri Lanka. So far, our participation in this so called trust fund is negative,” Country Representative for JBIC, Shinya Ejima said.

“But we will reserve our final position until discussions are over.” To date, Japan has pledged US$ 80 mn in emergency tsunami grant aid to Sri Lanka.

As Sri Lanka’s largest donor, with about US$ 250 in new funds committed each year, Ejima says it