Sri Lankan President Rajapaksa hopeful of getting bridging funds from Japan

“Japan remains one of Sri Lanka’s key development partners.”

Sri Lankan President Gotabaya Rajapaksa on Thursday expressed hope that bridging finance from Japan would help the island nation get over its current economic crisis, as he urged "international friends" to extend support and solidarity" to his country at this "very difficult time”.

Addressing the 27th International Conference on the Future of Asia in Tokyo, Japan, via video call, the President said he hoped for an early deal with Japan as negotiations were underway concerning bridging loans.

“Japan remains one of Sri Lanka’s key development partners, and we hope that the negotiations now underway regarding bridging funds from Japan will conclude soon, and support Sri Lanka as we try to stabilise our economy and our nation," the President said.

Bridge financing is a form of temporary, intermediate funding intended to cover short-term expenses until long-term funding is secured.

Mr. Rajapaksa outlined the difficulties faced by Sri Lanka since the COVID-19 pandemic.

"The virtual shutting down of the tourism industry and the sharp decline in inward remittances from expatriate workers due to COVID-19 in the past two years and increasing inflation due to other events combined with Sri Lanka’s high-outstanding debt obligations to cause a severe financial crisis," he said.

In April, Sri Lanka announced a ‘Debt Standstill’ with the intention of restructuring this external public debt through negotiations with the country's creditors, whilst simultaneously approaching the IMF for a suitable programme.