On July 30, 2024, the Export-Import Bank of Korea (Korea Eximbank) 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.
This 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.
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.
