Japan’s first resumed Yen-loan project completed: Habarana–Veyangoda transmission line opened

Colombo, Sept. 4 (Daily Mirror) - In what appears to be a major boost to the energy sector, the Habarana-Veyangoda transmission line project was opened at the new Habarana grid substation, according to a statement from the Japanese embassy.

Japanese Ambassador Akio Isomata attended the opening ceremony   together with   Kumara Jayakody, Minister of Energy,   Wasantha Edussuriya, General Manager of the Ceylon Electricity Board (CEB) and Kenji Kuronuma, Chief Representative of JICA Sri Lanka Office.

This yen loan project funded by the Japanese government worth approximately USD 65 million aims to contribute to Sri Lanka’s economic development by strengthening transmission capacity, enhancing the reliability of the power supply and reducing transmission loss through the construction of low-loss transmission lines and substations between Habarana and Veyangoda, the embassy said.

This project is a significant milestone as it is the first yen-loan project which has been completed and handed over to Sri Lanka since the disbursement of 11 suspended yen-loan projects was resumed in July last year, after the interval of three years due to the economic crisis in Sri Lanka.

In his remarks, Ambassador Isomata recollected Japan’s assistance in the electricity sector of Sri Lanka over the past decades and highlighted the features of this project including low-loss, large capacity and long-distance transmission, which also helps Sri Lanka reduce CO2 emissions by cutting down on transmission loss. He also referred to the ongoing bilateral cooperation in promoting the use of renewable energy through the Joint Crediting Mechanism (JCM) under the framework of Article 6 of the Paris Agreement, as exemplified in three completed or ongoing solar power projects in Sri Lanka. 

Ambassador Isomata emphasised the importance of inviting foreign investments for the economic development of Sri Lanka, including those from Japan, referring to eradication of corruption, improvement of infrastructure, enhancement of business environment as well as development of articulate industrial promotion policy, as essential elements to attract foreign investments.

Jayakody said that the project was a vital part of Sri Lanka’s electricity system, ensuring stability, reliability and greater capacity, and it would help prevent the power failures faced in the recent past. He also expressed sincere gratitude to the people of Japan for their long-standing friendship and support and noted that Sri Lanka looks forward to more Japanese investments in future projects.