Press Releases
Entering into an Agreement on Debt Restructuring between Federal Republic of Germany and the Government of the Democratic Socialist Republic of Sri Lanka in relation to the External Debt Restructuring Process
Entering into the bilateral Agreement with the Federal Republic of Germany in relation to the External Debt Restructuring Process marks a significant milestone and reflects the Government of Sri Lanka’s continued commitment to conclude the debt restructuring process successfully in order to restore debt sustainability and thereby revamp Sri Lanka’s economy.
Following bilateral discussions after the conclusion of the MoU with the Official Creditor Committee (OCC), the Federal Republic of Germany has agreed to extend a debt relief measure by rescheduling the outstanding debts.
The Bilateral Agreement was signed by Dr. Harshana Suriyapperuma, Secretary of the Ministry of Finance, Planning and Economic Development, on behalf of the GoSL, and H.E. Ms. Sarah Hasselbarth, Charge’ d’Affaires a.i., on behalf of the Federal Republic of Germany, at the Ministry of Finance.
The estimated rescheduled debt under this agreement amounts to Euro 188 million.
Entering into the Agreement will certainly pave the way to developing further the deep and longstanding bilateral relationships between the Federal Republic of Germany and the Government of Sri Lanka. The Government of Sri Lanka extends its sincere appreciation to the Government of the Federal Republic of Germany for its continued support and cooperation.
Ministry of Finance, Planning and Economic Development
Colombo 01
On January 07, 2026
Government of Sri Lanka and European Union Sign Euro 8 Million Grant Agreement for the Implementation of the “AgriGreen Initiative – Green Economic Growth through Sustainable Agriculture Practices” Project
The Government of Sri Lanka signed a Grant Agreement with the European Union (EU) to launch a new initiative under “the AgriGreen Initiative – Green Economic Growth through Sustainable Agriculture Practices” Project.
The EUR 8 million grant, provided by the European Union, will support a project jointly developed by the Ministry of Plantation and Community Infrastructure as lead-Ministry, Rubber Development Department and Rubber Research Institute of Sri Lanka, and in partnership with the EU.
The initiative will support Sri Lanka’s transition to green economic growth where sustainable consumption and production practices and food security are ensured. Further, the project aims to catalyze a shift to more sustainable and environmentally responsible agricultural practices in selected value chains of rubber sector with special attention to youth and women.
Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning and Economic Development, on behalf of the Government of Sri Lanka, and Dr. Johann H. Hesse, Head of Cooperation, Delegation of the European Union to Sri Lanka, on behalf of the EU were exchanged the signed Grant Agreement.
The Secretary of the Ministry of Finance, Planning and Economic Development expressed sincere appreciation to the European Union for its valuable support, noting that the project aligns closely with Sri Lanka’s sustainable development agenda, including market-oriented value addition and improved integration with export markets.
This agreement stands as a testament to the strong and enduring partnership between Sri Lanka and the EU. It marks an important milestone in our shared commitment to green economic growth, sustainable consumption and production practices and food security.
Ministry of Finance, Planning and Economic Development, Colombo 01
On January 07, 2026
Financial Assistance from the Asian Development Bank for the Strengthening Integrated Health Care and Governance for Universal Health Coverage Program
The Government of Sri Lanka had discussions with the Asian Development Bank to mobilize a loan amounting to USD 100 million coupled with an externally financed grant amounting to USD 6.9 million from the Pandemic Prevention, Preparedness and Response Trust Fund (Pandemic Fund) for the Implementation of the Strengthening Integrated Health Care and Governance for Universal Health Coverage Program under the Result-based Lending modality.
The above loan of USD 100 million under the Regular Ordinary Capital Resources of ADB will be obtained to support national strategic framework for the development of health services for improved efficiency and quality of secondary health services as first referral care for ensuring universal health coverage. Further, this program comprises of three outputs which will mainly focus on (i) enhancing first referral care services, (ii) enhancing pandemic prevention, preparedness, and response and (iii) improving health sector technical capacity and pharmaceutical supply chain management.
The Ministry of Health and Mass Media will mainly be the Executing and Implementing Agency while the nine Provincial Departments of Health Services will also act as Implementing Agencies of the above program.
The Loan and the Grant Agreements were signed on 17 October 2025 between the Government of Sri Lanka and the Asian Development Bank at the Treasury in Colombo by Dr. Harshana Suriyapperuma, Secretary, Ministry of Finance, Planning and Economic Development, on behalf of the Government of Sri Lanka and Mr. Takafumi Kadono, Country Director, ADB Sri Lanka Residence Mission, on behalf of the Asian Development Bank.
Ministry of Finance, Planning and Economic Development
17 October 2025
Financial Aid from the Asian Development Bank (ADB) for the Implementation of Transforming Irrigation Systems for Improved Food Security Project (Grant Financing)
The Grant Agreement for the Transforming Irrigation Systems for Improved Food Security Project was formally signed on 19 December 2025 at the General Treasury, Colombo, between the Government of Sri Lanka and the Asian Development Bank (ADB). Dr. Harshana Suriyapperuma, Secretary, Ministry of Finance, Planning and Economic Development, signed on behalf of the Government of Sri Lanka, while Ms. Cholpon Mambetova, Country Operations Head, ADB Sri Lanka Resident Mission, signed on behalf of the Asian Development Bank.
Funding for the project will be mobilized through the Japan Fund for Prosperous and Resilient Asia and the Pacific (JFPR) amounting to USD 3 million, along with USD 1.63 million in counterpart funding from the Government of Sri Lanka.
The project aims to introduce innovative, climate-resilient irrigation solutions to strengthen water security and support agriculture in Sri Lanka’s Dry Zone, which continues to face prolonged droughts, irregular rainfall, and declining crop productivity. Nearly 99% of the national irrigation network consists of open, gravity-fed earthen canals with low conveyance efficiency, resulting in substantial water losses and reduced yields.
Through this initiative, four pilot Pipe Distribution Network (PDN) schemes will be implemented in the North Western and Uva Provinces, covering approximately 877 hectares across existing irrigated command areas and adjacent rain-fed uplands. The identified locations include Kirindigalla GN Division under Ridi Bendi Ela feeder canal, feeder canal areas under the Magalla Reservoir, feeder canal areas under Inginimitiya Reservoir in the North Western Province, and the Meegas Ara small tank cascade system in the Uva Province.
The Ministry of Agriculture, Livestock, Lands and Irrigation will serve as the Executing Agency, while the Irrigation Department will act as the Implementing Agency responsible for technical delivery. The project will be implemented from 2026 to 2029.
Ministry of Finance, Planning and Economic Development
19 December 2025
Japan Grants Rs. 687 Million for Sri Lankan Officials' Postgraduate Education under JDS Programme
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On 24th July, the Governments of Sri Lanka and Japan reaffirmed their commitment to strengthening bilateral relations by signing agreements to continue the Japanese Grant Aid for Human Resources Development Scholarship (JDS) Programme, which supports the professional development of young executive-level officials in Sri Lanka’s public service."
Under the initiative, the Government of Japan has allocated JPY 332 million (approximately Rs. 687 million) for this year’s programme. The JDS Programme, funded through Japan’s Official Development Assistance and implemented by the Japan International Cooperation Agency (JICA), offers scholarships for postgraduate studies in Japan. Since its inception in 2010, the programme has awarded 240 Master’s and 16 PhD scholarships to Sri Lankan executive-level officials.
Currently in its Fourth Framework (2022–2025), the JDS Programme is expected to contribute to Sri Lanka’s socio-economic development and strengthen bilateral ties between the two nations. The Government of Sri Lanka views this initiative as a key investment in public sector capacity-building and a cornerstone of the long-standing partnership with Japan.
The Exchange of Notes between the Governments of Sri Lanka and Japan, along with a Grant Agreement between the Government of Sri Lanka and JICA, was signed on 24th July 2025 at the Ministry of Finance, Planning and Economic Development. The documents were signed by Dr. Harshana Suriyapperuma, Secretary to the Treasury and the Ministry of Finance, on behalf of the Government of Sri Lanka, and His Excellency Mr. ISOMATA Akio, Ambassador of Japan to Sri Lanka, on behalf of the Government of Japan; and Mr. KURONUMA Kenji, Chief Representative of JICA, on behalf of JICA.