The signing of the Exchange of Notes for the project took place between Fumio Kishida, Minister for Foreign Affairs of Japan and Mangala Samaraweera, Minister of Foreign Affairs of the Democratic Socialist Republic of Sri Lanka at the Ministry of Foreign Affairs, Japan on 19th June 2015.

The project intends to increase the steady electricity supply through expanding and improving the efficiency island - wide in transmission and distribution lines and thereby facilitate the economic growth of the country. Under the project, the existing transmission and distribution system will be developed by introducing low – loss power transmission and distribution lines and by constructing new substations in the areas of Western province including Greater Colombo, Central province and North central province.

Stabilizing the low cost power supply and improving basic power infrastructure are considered as key factors to combat the challenges in power supply reliability and energy efficiency of Sri Lanka. In this context, in 2012, the Government of Japan extended Japanese Yen 16 billion for the Greater Colombo Transmission Loss Reduction Project and also provided its technical assistance in preparing Power Sector Master Plan.

All projects under the Yen Loan scheme are in line with the development policies of the Government of Sri Lanka and are considered as of national importance in terms of facilitating social and economic development in the country. Japan hopes that these projects would enhance the long standing bilateral relationship between Japan and Sri Lanka and support overall development process to improve the living conditions of the people of Sri Lanka.

In addition the government of Japan has also granted 500 million Japanese Yen (approximately Rs. 560 million); to the government of Sri Lanka under the “Non Project Grant Aid for provision of Japanese Local Products (2014)”.

The purpose of this grant is to support the promotion of development needs in various social and economic sectors of Sri Lanka by utilizing the unique, efficient and user friendly technology of Japanese local enterprises.

The range of products provided under this scheme was selected by the government of Sri Lanka in consultation with the line agencies concerned, which will be procured in due course. Japan also provided a grant amounting to Japanese Yen 200 million (approximately 240 million Sri Lankan Rupees) using similar schemes under the “Non Project Grant Aid for the Provision of Japanese SME’s products” and another grant amounting to Japanese Yen 500 million (approximately 630 million Sri Lankan Rupees) to procure a Medical Equipment and Welfare Apparatus to the people in rural and urban areas in Sri Lanka in 2014. The people and the Government of Japan hope that the products provided will be utilized very effectively for the benefit of the needy people of Sri Lanka.