Sri Lanka is keen to restart the stalled Light Rail Transport (LRT) project which was planned from Malambe to Fort, said Chief Representative, Sri Lanka Office of the Japan International Cooperation Agency (JICA), Tetsuya Yamada at a seminar organised by the Development Policies, Strategies and Development Finance Committee of the Organisation of Professional Associations.
Yamada said that President Ranil Wickremasinghe had requested a re-launch of the LRT project at a meeting with the Japanese Prime Minister.
He said that they were willing to consider the request positively, but there was a matter of timing, given that Sri Lanka was just emerging from default.
He said that they had had discussions with the IMF on borrowing limits to Sri Lanka and had been encouraged to expedite the LRT project, as it would bring more foreign exchange to the Sri Lankan economy.
Yamada said that Sri Lanka must be on guard against ‘vultures and cherry pickers’ who were seeking to profit from the economic instability in the country. For example, in the renewable energy sector, there are many companies that are offering unfavourable terms.
He said that a transparent and fair process with quality requirements was essential to counter this trend.
Yamada recalled that Sri Lanka had experienced two painful crises, specifically the Covid-19 pandemic and bankruptcy. However, he said that the country, having hit rock-bottom, was improving rapidly.
He said that international institutions such as the World Bank and IMF were anticipating Sri Lanka’s turnaround, although the path to recovery and growth was a difficult one.
OPA President Sarath Gamage said that the Government had unveiled several ambitious economic targets including the country’s GDP growth rate reaching 5% by 2027. The achievement of these targets was essential to return the economy to a sustainable footing.
However, he said that it depended on a number of local and international factors which had to be carefully considered.
