Japan lends Rs.27bn to upgrade electricity transmission and distribution network

The Government of Japan extended a yen loan amounting to 24,930 million Japanese yen (approximately Rs.27.4 billion) to Sri Lanka towards the national transmission and distribution network development. 

The signing of the Exchange of Notes for the project took place between Foreign Affairs Minister of Japan Fumio Kishida and Foreign Affairs Minister of Sri Lanka Mangala Samaraweera at the Foreign Affairs Ministry, Japan, on June 19, 2015.

The project intends to increase the steady electricity supply through expanding and improving the efficiency islandwide in transmission and distribution lines and thereby facilitate the economic growth of the country. 

Under the project, the existing transmission and distribution system will be developed by introducing low-loss power transmission and distribution lines and by constructing new substations in the areas of Western Province, including Greater Colombo, Central Province and North Central Province.

Stabilizing the low-cost power supply and improving basic power infrastructure are considered as key factors to combat the challenges in power supply reliability and energy efficiency of Sri Lanka. In this context, in 2012, the Government of Japan extended 16 billion Japanese yen for the Greater Colombo Transmission Loss Reduction Project and also provided its technical assistance in preparing the Power Sector Master Plan. 

All projects under the yen loan scheme are in line with the development policies of the Government of Sri Lanka and are considered as of national importance in terms of facilitating social and economic development in the country. Japan hopes that these projects would enhance the long-standing bilateral relationship between Japan and Sri Lanka and support the overall development process to improve the living conditions of the people of Sri Lanka.



Grants galore 
Meanwhile, the Government of Japan granted 500 million Japanese yen (approximately Rs.560 million) to the Government of Sri Lanka under the ‘Non Project Grant Aid for provision of Japanese Local Products (2014)’.

The purpose of this grant is to support the promotion of development needs in various social and economic sectors of Sri Lanka by utilizing the unique, efficient and user-friendly technology of Japanese local enterprises.  The range of products provided under this scheme was selected by the Government of Sri Lanka in consultation with the line agencies concerned, which will be procured in due course. 

Japan also provided a grant amounting to 200 million Japanese yen (approximately Rs.240 million) using similar schemes under the ‘Non Project Grant Aid for the Provision of Japanese SME’s products’ and another grant amounting to 500 million Japanese yen to procure a medical equipment and welfare apparatus to the people in rural and urban areas in Sri Lanka in 2014.