Annual Report 2008 - Ministry of Finance and Planning

5. Foreign Financing of the Budget
199
commitment of 2007. However, commitments from
multilateral donors in 2008 have slightly decreased by US$
77 million or 5 percent.
Government of Iran, as a new bilateral development partner,
extended an export credit facility of US$ 450 million for
Uma Oya Hydro Electric and Irrigation Project. Iranian
commitment represents 55.5 percent of the export credits
and 22 percent of the total commitment in 2008. The major
traditional development partners Japan, the World Bank
and the ADB displayed their strong commitment to support
the Governments development efforts. These development
partners together accounted US$ 724 million or 35 percent
of the total commitment made in 2008.
Box 5.1
Development Assistance from Japan
Development Assistance from Japan
Japan accounted for about 18% of the annual aid flow to Sri
Lanka in 2008. Of the bilateral assistance received during
the past 5 years Japan accounted for about 30% of such
assistance.
About 90% of the Japanese assistance is provided in the
form of soft loans, covering a wide spectrum of sectors.
During the period from 2004 to 2008, the annual average
disbursement was about US $ 266 million which accounted
for around 23% of the total aid disbursement to Sri Lanka.
The highest ever disbursement in the recent past amounting
to US $ 302 million was achieved in 2006. US $ 278.7 million
has been disbursed in year 2008.
During the period of 2004-2008 Japan has provided US $
1206.4 million as soft loans, US $ 182.6 million as grants and
US $ 11.4 million as export credit .
Ministry of Finance and Planning Sri Lanka
Annual Report 2008