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Japanese aid has been concentrated so far in providing basic infrastructure including roads and bridges, but Sri Lanka's per capita income is now over 2,900 US dollars making it a middle income country.
"So we will gradually try to change to focus on sectors like disaster management - this is one of our most important sectors, or the health sector, the education sector," Hiromi Ao, chief representative of the Japan International Co--operation Agency in Sri Lanka said.
"So we would like to shift to that kind of sectors.
"
In the 43rd Yen loan package signed when President Mahinda Rajapaksa visited Japan involving 41 billion yen (53 billion rupees), 7.6 billion yen or 9.0 billion yen will be used to reduce landslide disaster along A-class national roads and provide early warning.
The project is expected to improve safety to road users and resident and also cut future reconstruction costs.
Japan will also fund a 5.1 billion yen (6.7 billion rupees) water supply and project in Anurad