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Japan agrees to defer payments on US$ 225 mn due in 2005

Japan on Tuesday confirmed Sri Lanka’s calls to postpone up to US$ 220 mn in loans owed to the East Asian development partner this year.
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Japan on Tuesday confirmed Sri Lanka’s calls to postpone up to US$ 220 mn in loans owed to the East Asian development partner this year. The total US$ 225 mn debt moratorium is the largest component in the US$ 338 mn loan postponement Sri Lanka called for from the donor community in the wake of the December tsunami disaster.
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Japan along with other bilateral donor partners have so far agreed to postpone or write-off close to US$ 350 million in loan repayments due in 2005.

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The monies will help maintain Sri Lanka’s external reserves - dollars used to finance an inflated import bill brought on by the tsunami reconstruction effort.

However most of the moratoriums or write-offs are limited to 2005, with the exceptions of India, Britain and Canada.

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India on Tuesday at the end of the two day Development Forum held in Kandy agreed to differ payments on US$ 30 million over three years of a total US$ 95 million owed to it by Sri Lanka.

Britain and Canada meanwhile together have agreed t

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