The Export-Import Bank of Korea (Korea Eximbank) has officially notified Sri Lanka's Ministry of Finance of its decision to resume EDCF Official Development Assistance (ODA) concessional loan projects in Sri Lanka.

The resumption comes after the Official Creditor Committee (OCC) and Sri Lanka finalized the Memorandum of Understanding (MOU) on June 26, 2024.

This decision includes resuming disbursements, signing loan agreements, and moving forward with the bidding process for all ongoing Economic Development Cooperation Fund.

This resumption will facilitate the restart of disbursements for construction projects already underway, including the Ruwanwella Water Supply Project.

This move marks a significant step in strengthening the longstanding ties between the Republic of Korea and Sri Lanka.

It is expected to contribute towards the recovery and stabilization of Sri Lanka's economy while promoting sustainable growth.

The Economic Development Cooperation Fund (EDCF) is a Korean government fund established in 1987 in order to support the industrial development and economic stabilization of partner countries and promote economic cooperation with Korea.

The Korean Government entrusts Korea Eximbank with the operation and management of EDCF. Since 1990, EDCF has authorized nearly USD 1 billion for 30 development projects in Sri Lanka.

Earlier, the Government of Japan announced its crucial decision of resuming disbursement for the Japan funded project portfolio of the country, signaling confidence in Sri Lanka's economic reform programme and renewed optimism regarding the future prospects of the country.

With this landmark decision, the suspended projects, including the Bandaranaike International Airport Development Project, utility projects, health sector improvement projects, rural development projects, etc., will be resurrected, paving the way for the economic and social improvement of the country.

The Bandaranaike International Airport Development Project, in particular, is critical for developing Sri Lanka's connectivity related infrastructure which would be a major boost for key sectors such as tourism, trade, and investment.

The official announcement of Dr. Tanaka Akihiko, President of Japan International Cooperation Agency (JICA) on the resumption of the disbursement was handed over to K.M. Mahinda Siriwardana, Secretary to the Treasury and the Ministry of Finance, Economic Stabilization and National Policies, by Ms. IDE Yuri, Senior Representative of the JICA Sri Lanka Office, recently.