Japan, Sri Lanka’s biggest bilateral lender after China, yesterday stressed the island nation must speed up in its debt restructuring efforts for its own betterment.

Sri Lanka’s ongoing efforts in debt restructuring is falling behind schedule and with an upcoming International Monetary Fund review, Japan’s Deputy Head of Mission Kotaro Katsuki highlighted the importance of accelerating momentum.

As several sections are awaiting the final outcome of the efforts that would help the national economy, Katsuki said Sri Lanka must make sure the process concludes sooner than later.

“This is absolutely crucial for the Sri Lankan economy but also for the people who are doing business and investing in this country,” said Katsuki addressing a forum hosted by the Sri Lanka-Japan Business Council.

A memorandum of understanding is currently underway, which has made several rounds back and forth.

“So, basically, the issue has nailed down to just one but in any case, there are some technical issues that hopefully we can solve soon,” he shared.

As multilateral lenders await the conclusion of the debt restructuring effort to resume lending, Japan expressed its intention to assist the country before the finalisation of the process.

Last month, Sri Lanka and Japan agreed to restart the stalled bilateral projects, including the US $ 1.5 billion Light Rail Transit.

Katsuki said Japan moving forward is a “bold move” and hopes this would bring about confidence towards the economic situation in Sri Lanka. 

With the resumption of the JICA loan projects, it also means projects such as the Bandaranaike International Airport upliftment, among others, would kick off.

“There will be real work on the ground with the construction happening. So, it will be a means for us to contribute to the real economy, which I think at this moment is very crucial because the macroeconomic situation has improved significantly. But I think the ground reality still is a challenge,” he said.