14 October, 2019

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JICA Loan Operations In Sri Lanka Put On Hold Due To Political Instability

In another blow to the Sirisena-Rajapaksa coup, Japan International Corporation Agency (JICA) loan operations in Sri Lanka have been put on hold due to the prevailing political turmoil in the country, Colombo Telegraph learns.

Prime Minister Of Japan – Shinzo Abey

JICA has informed its project directors that the operations have been put on hold “until relevant issues are resolved with regard to notification, legality and legitimacy of the borrower and/or executing agency.”

However, JICA has stated that the disbursement requests received at its Colombo office as of October 26, without discrepancies will be disbursed normally.

This comes a day after Japan suspended the USD 1.5 billion worth light rail transit project in Sri Lanka due to the current political instability. The project was handled by the Ministry of Megapolis and Western Development.

Several international partners, including the European Union, have signaled that they will adopt punitive measures against Sri Lanka if the country fails to uphold Parliamentary democracy, rule of law and peace.

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  • 11
    1

    Best option for MR and M&s is to sell part of Sri Lanka to china to wipe out our loans ..
    That is the secret plan of China .
    So that India can not do anything ..
    You will see more and more Chinese influence soon.
    We cannot underestimate china”s influence?

    • 6
      3

      Foreign Aid is a more often than not a corruption racket to benefit the strategic business and security interests of the donor country and corrupt local politicians.
      Sri Lanka is in a debt trap with its currency crashing because of Fake development Aid projects that accelerated after war ended in 2009.
      The largest chunk of Sri Lanka’s external debt is primarily owned by the Asia Development Bank and Japanese Govt. JICA (which is often a proxy for US in Indian Ocean geopolitics), and World Bank IMF according to Central Bank figures, and the slide of the long Lankan rupee was triggered by the dubious Nomura Ratings, Tokyo (which bought Lehman Brothers after it crashed), releasing Fake new and numbers about the magnitude of Sri Lanka’s debt in its Democlese Index. These figures were challenge by the SL Central Bank and Nomura accepted its mistake.
      That the Wickramasinghe govt. was letting the Lankan rupee lose value against the USD while making the country highly import dependent also with the recently signed Singapore FTA without due diligence to improve domestic industry and production, and the sense that neoliberal “reform” agenda of Wickramasinghe was bad for Lanka also given spiking petrol prices, and rising cost of living, were reasons for Sirisens’s speedy coup rather than any drawn out No confidence motion in parliament against Wickramasinghe who has been badly damaged by the Bondscam. There was and is a sense that ordinary people are paying for the Luxury life-styles of politicians and excessive import bill.

      • 3
        8

        Right on Don! Japan’s fake aid through ADB and JICA is the REAL cause of Lanka’s current debt trap and crashing rupee. Sri Lanka has the highest road density in South Asia and does not need more cars but Japan/ADB has been building over priced highways and flooding Lanka with Toyota cars and SUVs to benefit its economy when Lanka needs good air conditioned public transport as in Singapore. Toyota SUVs were given corrupt parliamentarians afterRanil looted the Central Bank to give them Duty free permits as bribes to keep their mouth shut about bondscam.
        The solution to traffic and air pollution is good public transport, but ADB has been promising and delaying on light rail projects for decades and the corrupt Sri Lanka politicians and transport sector officials have looked the other way. People suffer meanwhile

        • 2
          0

          Dinuk
          “The solution to traffic and air pollution is good public transport “.
          Few things facilitate to make good decisions such as Singapore’s when it comes to an efficient clean quick public transport. Cars are heavily taxed. Old Unroadworthy fuel guzzling smokey vehicles heavily fined. They are exported to SL.

    • 3
      5

      All these overpriced foreign loan projects like highways to nowhere, that cause massive debt should be stopped and reviewed, to see if they actually benefit the people of Lanka. particularly the most impoverished sectors who most need development assistance.
      Foreign aid for trade loans are a racket.

  • 4
    1

    Christmas comes early for Chinese neo-colonialism.

  • 3
    1

    Gazette issued by President the Parliament will be convened only on 17th of November 2018

  • 1
    6

    I think the MEgapolis development is stupid. That should be abandoned. We need to be careful whether the new govt start takinghumongous projects under their control.Because, that is where commis, political donations and money to establish foundations and opening foreign bank accounts work. Anyway, Ranil say, his only grienve is he was not dragged out the temple trees from his feet. He says he needs only to the be the PArty LEader. There is a possibility that MAhinda Rajapakse and Ranil establish a govt.

  • 1
    3

    The current policy of Japanese govt. for the funding of projects have been stop is under political changes is surprise move . These new political conditions installed by Japanese side are that not happy of majority People of Sri Lankan….

    The previous govt. of Japan has board base investment policies an irrespective of changes of govt.
    Well other countries political issues are very sensitive, by and larger that effect on relevant projects oriented funding is going suspended wrong move by Japanese current govt.
    In fact Japanese govt. could not interfere internal affairs that shows undermined economic sovereignty
    of Sri lanka.
    has to know that is support that many apply projects recant past

  • 3
    5

    Japan should keep its Fake Aid and Fake development experts too!
    It is Japan owned ADB and JICA, (Washington’s proxy in Asia), with IMF and World Bank that have put Lanka in a massive debt trap in collaboration with corrupt politicians, particularly Bondscam Ranil, and are crashing the rupee.
    According to Central Bank figures of Sri Lanka’s external debt, ADB and JICA own 25% of Lanka’s external debt, whereas China owns just 10.3% of Lanka’s external debt, although NYT published fake news to blame China for Lanka’s debt trap. Sri Lanka is a small economy, with GDP less than a medium sized corporation, and it seems that Lanka is being played by the Washington Consensus Bail out business Economic Hit men, in Trump’s Cold war against China in Indian Ocean, just as Greece and Argentina were ruined.
    The dubious Nomura Ratings agency, Tokyo which bought Lehman Bros. after the 2008 crash published fake news about the amount of debt that Lanka has in its useless Democlese Index.

  • 4
    1

    MR is a war criminal, when he represent sri lanka, we sri lankens have a problem. what is needed is a new politician. not the old guard.

  • 1
    0

    SL should not be sensitive to outside forces/sources until the internal crisis is solved.

    Stability is best gained only by a fresh mandate.

    If JICA/Japan/the US/UK/UN is so interested, press both MS & RW to go for a fresh mandate.

    What SL people believe is that the 2015 mandate had been given for MS & RW to go together & as they’re at loggerheads & so called gg govt. has come to the end, there’s no more mandate & sacking bond scam champion is reasonable.

    Let me stress the fact that the said mandate had been given for RW to go with MS together & failure must result in coming to the end of that mandate earlier than expected.

    If appointing MR can’t be accepted on any ground the only available option is dissolving the parliament.

    Convene the house, not to see who has the majority support but to get UNP support to provide 2/3 vote to dissolve the house.

  • 2
    1

    The Chinese government has no issue in releasing all the loan; as the loan is always paid in to Mahinda’s private bank account

  • 0
    0

    If Japanese govt. on that view of of present context MS +MR under ongoing situation is wrong calculation by LDP line of politics.
    Shinto Aba-san politics of LDP are more towards right-wing move by undermined good relationship with People of Sri Lankan sovereignty and Japan.

    We asked LDP politics to keep beside that is not suited good relationship with two countries and people.

    Therefor Japan should not working on Western Political road map?
    We want govt. of Japan to handoff an interfere of Internal affairs political and economic sovereignty of
    Sri Lankan by that LDP politics against will of majority people of Japan?
    We are working towards economic sovereignty since after end of 30 years war tone economy since 2009 May 19th shifted New Era of Political-economy-social order by new alliance by MS and MR joint efforts.

    This what is now that happen is change of New ruling of good governances since last week ?
    It is vital interest of all Sri Lankan.

  • 1
    0

    No lender/investor will be willing to finance projects in a country embroiled in political turmoil. . Then why blame them when they pull out citing political instability. President Sirisena who is clueless about the intricacies go global financing is the person who is responsible for the current situation. It is Sri Lanka made and, therefore, don’t blame others for our sorry plight!

  • 0
    0

    It’s hightime that SL puts an end to this madness of getting loans for consumables and infrastructure. Because this kind of loans only increase debt and reduces the capability to pay back. If SL gets loans it should only be for capital investments like factories, industrial plants which generate revenues. We don’t wanna go to work on a railway built on loan from Japan do we? we’d rather go to work by foot…. Coz highways were built with the motivation that investments will distribute around the country as transportation costs are cut down heavily.. But seemingly no significant investment was materialized. Therefore it’s time that SL utilizes it’s available infrastructure to kick start the capital investments!!!

  • 0
    0

    Prime minister Ranil Earn trust, from japan not worry about the rest, the is put on hold dur to the present operations in Sri Lanka, Two images are reflected about sri lanka

    1. It is due to President showed the word not to trust PM
    2. It has dhown the world The majority is of the opinion that all changes made in the Parliament are undemocratic and inconsistent with traditions of Parliament and as the majority

  • 0
    0

    I am sorry to say many of commenters has no research on that real facts behind of Japanese investors….policies of govt. of Japan guide-line . Japan has not an approved single Railway projects to
    Sri lanka since past odd 40 years.
    What was the reasons behind that ,by way Japanese Trading houses, Giant Banks, individual business were only interest of export large number of USED cars and other vehicles an Island to so many years since 1980tees.
    Look at Japanese ODA (oversees development Assistance ) has no agenda for Railway Projects many developing countries including-Sri lanka last 40 years.
    Few Japanese investment are originally curtail for Industries only few South Asian nation or not all at south Asian region as whole that included Sri lanka.

    If any writer want see, it has go through that JETRO data and research papers published by JETRO.
    While on other hand large number of govt. white-papers you can understand that in perfectly, which is govt. of Japan policies on investment running towards what direction?

    We are not going loosing Japanese investment because of dismissed from UNP Ranil Wicks…as Primer ?
    What type of stability Japan’s govt. want from Sri lanka? Yes 30 War was ended by MR in 2009 May 19.
    It had created stability and peaceful environment more than UNP Ranil Wicks….last 42 months since 2015 January 8th? Do it fact of reality of truth that denied by Japanese govt.???
    Or that wish of LDP line of political has to tow by Sri Lankan.!!!@?

    Well known factor is Japanese cost of Projects are unaffordable developing country like Sri lanka?
    But China and Korean projects are affordable to us. While quality of projects of China & Koreans has remarkably higher level at recognized by international standards.
    We love people of Japan ,we are appreciated Japanese investment are welcome..
    But we asked People of Japan to respect the sovereignty right of Sri Lankan.

  • 1
    0

    Stop Kalani Vally elevated railway project feasibility and design study. Huge capital costs (USD 2.52 billion) is the main obstacle for this project and its’ costs goes beyond many other mega projects completed in Sri Lanka. For instance, Port City infrastructure development cost only USD 1 billion, Hambantota seaport phase I cost only USD 3.61 billion, Mattala Airport development cost only USD 2.71 billion, Godagama to Matara highway (131 km) costs only USD 4.0 billion, Matara to Hambantota highway (74 km) costs only USD 3.0 billion, Outer Circular road costs only USD 2.12 billion and Colombo – Katunayaka Express way costs only USD 3.2 billion. Therefore need to re-think the scale of development especially elevated option and electrification delay or phase-outs may be improved KV line’s financial feasibility. Finally, some possibility is there to handover Kottawa to Maradana section of KV line to LRT Authority (possibly KV line up to Homagama) to operate LRT system by looking at costs incurred and the financial benefits received. Because KV line development mainly focused on passenger transportation which mainly can be undertaken by LRT for very minimum costs with various other benefits.

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