Sri Lanka’s Foreign Minister Ali Sabry (R) shakes hands with Japan’s foreign Minister Yoko Kamikawa after a joint press conference in Colombo on May 4, 2024.
| Photo Credit: AFP

Sri Lanka and Japan agreed on Saturday to work to resume stalled bilateral projects including a $1.5 billion Japan-funded light rail project.

The two nations announced the agreement during a visit to the South Asian island nation by Japanese Foreign Minister Yoko Kamikawa.

Sri Lanka pulled out of the rail project in 2020, leading to a cooling of relations, when it was moving closer to China under the then-president, followed by a financial crisis.

The Sri Lankan cabinet in July gave approval for President Ranil Wickremesinghe to decide on the appropriate time frame to reactivate the projects with Japan.