COLOMBO: Japanese foreign direct investments will flow into Sri Lanka due to the current peaceful environment and good governance in the country. For more than a decade Japanese foreign direct investments were stagnant owing to Sri Lanka’s internal issues, Japanese ambassador to Sri Lanka Kenichi Suganuma said.
“Sri Lanka needs a clear, consistent and transparent economic policy to promote foreign direct investment into the country. Therefore, several top end high tech Japanese companies are exploring the possibilities to invest here. They are quite positive on investing here due to the peace and good governance that prevails in the country, Suganuma told The Island Financial Review recently.
He said Sri Lanka has a very high potential for private sector-led business development with the change of government polices.”It could make most from its geographical advantage due to its access to the huge Indian, Bangladesh and Pakistan markets, he said.
The ambassador also said that the national government concept in Sri Lanka is an excellent measure for the country to move forward as it could create a lot of confidence among prospective investors to invest here. “Therefore, we are also considering signing the Free Trade Agreement in the future, he said.
Suganuma said Japan is now keen on promoting the bilateral trade relationship and FTA with Sri Lanka to enhance trade and investment between the countries.
The ambassador said the balance of trade between the two countries is in favour of Japan and for Sri Lankan exporters to penetrate the complex markets of Japan, they should meet high global quality standards.
Suganuma said Sri Lankan exporters should focus on and identify markets in Japan. At present there is a high demand for virgin coconut oil and high quality tea, he said.
Tea, which is Sri Lanka’s main export item to Japan, accounted for around 21 percent of total exports in 2013. Other items exported to Japan include fish, fresh or chilled and shrimps, prawns, raw bristle fibre, precious and semi-precious stones, natural rubber, machine parts and accessories, brooms, brushes, tyres, vegetables, fruit and nuts.
Japan-Sri Lanka trade had been increasing with a few hiccups during the financial crisis in 2008 and in the years that followed. Trade between the two countries rose from US$ 556 million in 2004 to US$ 1,249 million in 2011 and then slid to US$ 770 million the following year. Trade analysts said that the growth trend will continue given the close ties between the countries and their interest to break barriers and explore new opportunities.
The Japanese ambassador said that during Prime Minister Ranil Wickremesinghe’s visit to Japan an agreement was reached to extend continuous support to Sri Lanka in every manner.
