‘The Morning’ newspaper today reported a statement made by the Vice President of the Ceylon Chamber of Commerce Mr. Duminda Hulangamuwa that Japan has suspended all its projects in Sri Lanka due to non-payment of debts.
In an interview with TV Derana, he said that when he met with representatives of Japan, the United States and India, they indicated that Sri Lanka’s unsustainable debt burden could not provide significant assistance without an IMF program.
According to the Central Bank of Sri Lanka (CBSL), the amount of project loans taken from Japan as of December 2021 as an outstanding liability to Sri Lanka is Rs 621 billion.
Moreover, the ‘Morning’ newspaper had reported that Japan-based Taisei Company, the contractor of the Bandaranaike International Airport (BIA) Terminal II project, is planning to exit Sri Lanka amid the current economic situation.
Airport Chairman Major General (retd) A. Chandrasiri said the matter was being discussed with the Taisei Corporation, but declined to provide further details as both countries’ involvement in the matter required confidentiality.
Accordingly, the newspaper reported that based on the progress of the negotiations with the International Monetary Fund, India and America have also decided to support Sri Lanka.