Business
Japanese Embassy to follow up on President’s discussions in Tokyo
- Acting Ambassador inspires hope on resuming ODA projects spearheaded by Japan
- Hopes transparency and consistency will be enhanced through reforms
- Urges Sri Lanka to work on rooting out corruption and reforming SOEs
- Says Expo 2025 in Osaka can enhance attractiveness of Sri Lanka to the world
By Sanath Nanayakkare
Kotaro Katsuki, the Acting Ambassador for Japan in Sri Lanka said in Colombo on May 26 that the Japanese Embassy would follow through the bilateral economic cooperation and business discussions President Ranil Wickremesinghe had during his visit to Japan last week.
“President Ranil Wickremesinghe addressed the 28th Nikkei Future of Asia Conference held in Tokyo. During this visit, President Wickremesinghe held bilateral discussions with Japan’s Prime Minister Fumio Kishida, Minister of Finance Suzuki Shunichi, Minister of Foreign Affairs Hayashi Yoshimasa and Minister for Digital Transformation Taro Kono. President Wickremesinghe also exchanged views with the business community at economic events, which we believe will lead to stronger bilateral relations and we will be following through the action items of these business and economic events,” he said.
The Ambassador made these remarks while delivering the keynote speech as Chief Guest at the ceremonial opening of the ‘Build SL’ Housing and Construction International Exhibition 2023, organised by the Chamber of Construction Industry of Sri Lanka.
President Ranil Wickremesinghe during his visit to Japan last week engaged in a pivotal business roundtable on ‘Sri Lanka’s Economic Revival and Opportunities for Japanese Enterprise,’ where he presented the nation’s commitment to stabilising and liberalising the economy while earnestly inviting new Japanese ventures.
The Acting Ambassador further speaking at the Build SL launch ceremony said,” It is my great pleasure to be invited to the Build SL Housing & Construction Expo 2023 of Chamber of Construction Industry Sri Lanka. I congratulate Sri Lanka on obtaining the approval of the IMF Executive Board on March 20th for its Extended Fund Facility. This came after a lot of work done by the Sri Lankan authorities and recognition from the international community on the reforms that have been carried out such as fiscal reform. We welcome this major step towards the revitalization of the Sri Lankan economy. The ‘Build SL’ exhibition comes at a very timely moment, which brings together companies in the construction industry with great potential to stimulate economic growth of this country.”
“Last year, Japan and Sri Lanka celebrated the 70th anniversary of the establishment of diplomatic relations established in 1952, and the construction of the Inginimitiya Irrigation Dam began in 1978 as the first Official Development Assistance (ODA) project.”
“In the 80s, development projects were carried out at the Colombo Port. In the 90s, Baseline Road improvement and Japan-Sri Lanka Friendship Bridge expansion projects were implemented. In the 2000s, the Colombo International Airport improvement project and the construction of the Southern Expressway, the first expressway in Sri Lanka, and Colombo Outer Circular Highway as well as local road improvement and development projects added to the list. In the 2010s, consultations for Phase 2 of the Bandaranaike International Airport Improvement Project began, as well as major bridges construction project of the national road network and the landslide disaster protection project of the national road.”
“It’s a great honour to see some of the Japan’s iconic ODA projects adorning Sri Lanka’s currency notes in circulation blending with other distinct national symbols.”
“After my arrival in Sri Lanka in August 2021, the Golden Gate Kalyani Bridge, was completed in November of that year, This Bridge has become a landmark in the metropolis of Colombo and has contributed significantly to easing traffic congestion on surrounding roads, and is the first ever extradosed engineering design in Sri Lanka. We are delighted to have been able to transfer Japanese state of the art technology to Sri Lanka through this project.”
“The Japanese Embassy building in Gregory’s Road is currently undergoing refurbishing. In all of these projects, Sri Lankan construction companies have been good partners of Japanese companies in its implementation and the construction industry has made a significant contribution to the country’s development. However, we are aware that the entire industry has been severely affected by the current economic crisis, which has led to the suspension of public works projects.”
“Allow me to touch upon some contributions by Japan in response to the economic crisis in Sri Lanka. In order to support Sri Lanka, the Government of Japan has provided up to approximately 93 million USD worth of inundated grant assistance to Sri Lanka since 2022.”
“Sri Lanka has been going through difficult times due to a series of adversities such as the Easter Sunday terror attacks in 2019, the outbreak of COVID-19 and the ongoing economic and social crisis. However, now is a great opportunity to recover from this situation. To that end, based on the IMF agreement, we would be delighted to see Sri Lanka assiduously work on a series of reforms such as rooting out corruption and reforming state-owned enterprises.”
“Moreover, in order to make the economy more export-oriented and competitive as mentioned in the 2023 budget, it should entail further strengthening of the manufacturing industry across the board and promotion of the export industry by connecting it to the global supply chain. In considering future assistance to Sri Lanka, Japan would like to support Sri Lanka’s effort to make its economy more resilient.”
“In addition, it is essential to attract foreign investment in order to achieve sustainable and stable economic growth by way of improving the investment environment. We hope that transparency, efficiency and consistency will be enhanced through the reforms, which are taking place.”
“Now, I would like to catch up on future-oriented initiatives spearheaded by Japan that will lead to further development of both Japanese and Sri Lankan companies and collaboration between our respective companies.”
“The first initiative is related to climate change and decarbonisation. In October 2022, our two countries signed an agreement on a Joint Crediting Mechanism (JCM). With the collaboration between Japanese and Sri Lankan companies and the support from the Japanese government, this Joint Crediting Mechanism will allow for reducing greenhouse gas emissions by harnessing decarbonisation and renewable energy technologies to Sri Lanka. With this program, it is hoped that Japanese companies will find it more attractive to invest in the field of renewable energies or decarbonization projects in Sri Lanka with their innovative technologies and solutions.”
“Japan is going to hold Expo 2025 in Osaka in April 2025. This event will present another great opportunity to attract attention and investment from Japan to Sri Lanka, in the field of trade, investment and tourism. The Sri Lankan government has already expressed its intention to participate in this event. I hope that both the private and public sectors of Sri Lanka will jointly make the most out of this Expo 2025 to promote the attractiveness of Sri Lanka to the world. I hope that these initiatives will bring about new business opportunities for both Sri Lankan and Japanese businesses.”
“In the future, the development of the construction industry in Sri Lanka will become increasingly important for the country to overcome the current economic crisis and achieve sustainable development. Japan will continue to be involved in the resumption of ODA projects, including the Bandaranaike International Airport expansion project, which is currently suspended due to the situation in this country and in order to move forward, it’s important for the Sri Lankan Government to work on restructuring its debt and to improve the economic and financial situation in a transparent manner working closely with the IMF, Paris Club and other entities.”
The Acting Japanese Ambassador concluded his remarks by expressing Japan’s determination to continue to stand by Sri Lanka as its partner, and to support Sri Lanka to reach its full potential towards building a strong and vibrant economy.
Business
JICA and JFTC support Sri Lanka’s drive for economic growth through a fair and competitive market
The Japan International Cooperation Agency (JICA) and the Japan Fair Trade Commission (JFTC) have expressed their support for policy reforms and institutional enhancements aimed at ensuring the supply of high-quality goods and services in Sri Lanka while safeguarding both consumers and producers.
This was discussed at a meeting held on Wednesday (12) at the Presidential Secretariat between representatives of these organisations and the Secretary to the President, Dr. Nandika Sanath Kumanayake.
During the discussion, the representatives emphasized that establishing fairness in trade would protect both consumers and producers while fostering a competitive market in the country. They also emphasized how Japan’s competitive trade policies contributed to its economic progress, explaining that such policies not only help to protect consumer rights but also stimulate innovation.
The secretary to the president noted that this year’s budget has placed special emphasis on the required policy adjustments to promote fair trade while elevating Sri Lanka’s market to a higher level. He also briefed the representatives on these planned reforms.
The meeting was attended by Senior Additional Secretary to the President, Russell Aponsu, JICA representatives Tetsuya Yamada, Arisa Inada, Yuri Horrita, and Namal Ralapanawa; and JFTC representatives Y. Sakuma, Y. Asahina, Y. Fukushima, and M. Takeuchi.
[PMD]
By Ifham Nizam
The intersection of climate change, energy security and global politics has never been more crucial, with geopolitical conflicts increasingly driven by competition over fossil fuels and critical minerals. Mayank Aggarwal, an energy and climate expert from The Reporters’ Collective, highlights this in his work, ‘Geopolitical Energy Chessboard’.
“Climate change and energy security are two of the most pressing global challenges, Aggarwal explains. “Urgent climate action is needed to mitigate its impact, but reducing fossil fuel use and transitioning to cleaner energy is a politically charged issue, he told The Island Financial Review.
His research highlights the complex web of energy politics, particularly in South Asia, where one in four people on earth reside. “South Asia is a major importer of fossil fuels and its energy security is critical. But the region also lacks a comprehensive dialogue framework to address climate and energy challenges collectively, he notes.
Aggarwal emphasizes that energy conflicts are not just national concerns but extend to the global stage. “From Libya and Iraq to Ukraine and Venezuela, conflicts over oil, gas, coal and critical minerals are shaping international relations. These disputes threaten economic stability and development goals worldwide.”
Despite the urgent need for a clean energy transition, political and economic interests delay global cooperation. “Countries are pulling out of climate agreements, favoring bilateral deals that often sideline developing nations. While global clean energy transition is essential, the geopolitical hurdles remain significant, Aggarwal warns.
He calls for a “Just Energy Transition” that ensures energy security and independence while engaging communities in decision-making. “We need regional cooperation, transparent negotiations for resource-rich areas and strong political will to drive climate and energy discussions at all levels, he concludes.
As the world grapples with escalating climate disasters and energy crises, Aggarwal’s insights highlight the urgent need for a balanced, just, and cooperative approach to energy politics.
The Securities and Exchange Commission (SEC) of Sri Lanka recently participated in the Capital Market Forum 2025, organized by the Department of Accountancy and the Department of Finance of the Faculty of Management and Finance at the University of Ruhuna, in collaboration with the Colombo Stock Exchange (CSE). This interactive knowledge-sharing forum aims to enhance financial literacy and promote capital market participation among undergraduates and academics.
A key highlight of the forum was the workshop on “Nurturing Future Investors: The Role of Capital Markets in Personal and Economic Growth,” which featured distinguished speakers, including Senior Professor Hareendra Dissabandara, Chairman of the SEC, and Tushara Jayaratne, Deputy Director General of the SEC.
Senior Professor Hareendra Dissabandara delivered a compelling lecture on the crucial role of capital markets in fostering economic development. He emphasized how capital markets facilitate efficient capital allocation and contribute to long-term economic stability. A key focus of his discussion was the significance of capital formation as a sustainable alternative to debt financing for government projects. He illustrated this by comparing the market capitalization of a leading Sri Lankan company with the costs of several major government initiatives.
Professor Dissabandara highlighted the historical reliance on borrowing for infrastructure development in Sri Lanka, leading to fiscal imbalances, high-interest burdens, and economic vulnerabilities. He underscored the importance of equity financing in business sustainability, emphasizing that an efficient financial market channels surplus funds from households, institutions, and foreign investors into businesses and government projects. He explained that for over 70 years, successive governments have relied on borrowing to fund infrastructure and development, causing fiscal imbalances, rising interest burdens, high taxation, and economic vulnerabilities. He also noted that corporate professionals often overlook the importance of equity financing for sustainable growth.
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