South Korea resumes ODA concessional loan projects in Sri Lanka

The Export-Import Bank of Korea (Korea Eximbank) has officially notified Sri Lanka's Ministry of Finance, Economic Stabilization and National Policies 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, the Korean Embassy said in a media release. 

The embassy added that the decision includes resuming disbursements, signing loan agreements, and moving 
forward with the bidding process for all ongoing Economic Development Cooperation Fund (EDCF) projects in Sri Lanka.

"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," noted the statement. 

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.