Economy & Development Cooperation

2024/1/31

Economy

Economic and Fiscal Policy of Japan

Japan External Trade Organization (JETRO)
JETRO also provides consultation and information on investment opportunities in Japan.

ODA

Development Cooperation Charter
Country Development Cooperation Policy
Rolling Plan for Democratic Socialist Republic of Sri Lanka
 
Overview of Japan's Economic Cooperation to Sri Lanka
Grant Assistance for Grassroots Human Security Projects
 
<Japan’s assistance in response to Tsunami Disaster in 2004>
Assistance for Tsunami Rehabilitation and Reconstruction
Evaluation of Japan's Assistance in Response to Tsunami Disaster

▶▶ Consultation Desk on Fraud and Corruption

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2024/01/31
Webinar on the Joint Crediting Mechanism (JCM) Implementation for Sri Lanka

2024/01/23
Japan to Extend its support for Humanitarian Demining Activities in Northern Province

2023/12/06
Japan further solidifies collaborative relationship in the field of health care

2023/11/27
Japan to extend its support to Humanitarian Demining Activities in Northern and Eastern Provinces

2023/11/22
Japan Provides 2 Grant Aid Projects: JPY 200 Million-Grant Assistance to boost North-East fisheries infrastructure and JPY 160 Million-Grant Assistance for The Project for the Establishment of a Doppler Weather Radar Network

2023/11/8
Handover of Newly Expanded Kandy Child Development Centre for Vulnerable Children, Youths, and Women in Kandy District

2023/9/20
Mr. Sunil Gamini Wijesinha Receives “The Order of the Rising Sun, Gold and Silver Rays” on 19th September, 2023

2023/6/9
Cabinet Decision on Revision of Development Cooperation Charter

2023/5/18
Japan Enhances Support to Sri Lanka Through UNODC in Support of Evidence-based Drug use Prevention, Treatment and Care Initiative

2023/5/16
The Government of Japan provides $ 4.6 million through FAO to boost paddy production in the dry and intermediate zones of Sri Lanka

2023/5/12
Ambassador’s Commendation awarded to the representatives of the local demining NGOs

2023/4/29
Announcement of Mr. Sunil Gamini Wijesinha and Prof. Upul Bandara Dissanayake Receiving "The Order of the Rising Sun"

2023/4/26
Points to consider when choosing a foreign sending organization (For Supervising Organizations of technical intern trainees program)

2023/4/26
Japan Provides JPY 503 Million (USD 3.7 Million) Grant Assistance for “The Project for the Improvement of Infectious Waste Management”

2023/4/24
Government of Japan partnering with UNDP provides approx. LKR 1,175 million (approx. USD 3.8 million) to support improvement of women’s economic wellbeing for smallholder farmer families in Sri Lanka

2023/4/20
Japan joins hands with UNFPA by funding USD 4.6 million to support women and girls’ health

2023/4/18
Japanese learning materials and app for technical intern trainees

2023/3/23
Japan provides USD 1.6mn to Sri Lanka through UN Women in support of humanitarian assistance for marginalized women and girls

2023/3/16
Japan Contributes Over $1.8 Million to Provide Essential Services for Children in Sri Lanka

2023/3/9
Sri Lanka adopts first National Action Plan on Women, Peace and Security

2023/3/9
Japan extends its support to Ampara, Batticaloa and Monaragala Districts under the scheme of “Grant Assistance for Grassroots Human Security Projects”

2023/3/9
Japan Extends Additional US$ 6.6 Million Support to Sri Lanka for Emergency Food and Nutrition Assistance

2023/2/22
Japan provides Humanitarian Assistance of USD 46M in diesel fuel for public hospitals as part of USD 104M grant assistance in 2022

2023/2/18
Japanese Ambassador MIZUKOSHI Visit to Trincomalee and Polonnaruwa

2023/2/17
Ambassador MIZUKOSHI attends the Handing over Ceremony of Night Navigation System of the Port of Trimcomalee

2023/1/24
GOVERNMENT OF JAPAN PROVIDES NEW COLD CHAIN EQUIPMENT AND NUTRITION SUPPLIES PROCURED BY UNICEF THROUGH EMERGEMCY ASSISTANCE TOTALLING USD 3.5 MILLION

2022/12/20
The International Labour Organization and Government of Japan join hands together to enhanced socio-economic reintegration and economic wellbeing of returnee and aspirant Sri Lankan migrant workers

2022/12/19
Ambassador MIZUKOSHI handed over essential Nutrition Packs procured by SLRCS through Japan’s humanitarian assistance of USD 1 million

2022/12/15
UNFPA and Japan deliver on three-years of PROMISES

2022/12/6
Sri Lanka moves towards adopting first-ever National Action Plan on Women, Peace and Security with the support of Japan and UN Women

2022/11/30
Japan Extends Grant Assistance for Humanitarian Demining Activity in the North and East

2022/11/29
IOM Launches a Centre for Handloom Production and Training for Returnee Migrant Workers with support from the Government of Japan

2022/11/11
Japanese Ambassador MIZUKOSHI Reaffirms His Commitment to Assist the Economically and Socially Underprivileged Communities during His Visit to Nuwara Eliya District

2022/11/4
Foreign Minister’s Commendations for FY 2022 awarded to Ms. BABA Shigeko and Handover of facilities of special support center for disabled children

2022/11/3
H.E. MIZUKOSHI Hideaki, Ambassador of Japan and the Governor of Japan distributes the emergency food package to the vulnerable communities in Ragala Watta, Central Province, in collaboration with WFP

2022/11/2
Handover of Gravity Fed Water System for Clean Water Supply in Ambagamuwa DS Division, Nuwara Eliya District (Grassroots Human Security Grant Assistance)

2022/10/31
H.E. MIZUKOSHI Hideaki, Ambassador of Japan and the Governor of Northern Province Hon. Mr. Jeevan Thiagarajah co-hosted a roundtable discussion on economic development and future opportunities of the Northern Province

2022/10/27
Japan Grants JPY 800 million (USD 5.5 million) Medical Equipment to National Hospital and Ragama Teaching Hospital to Strengthen the Sustainable Medical System under the Current Economic Crisis

2022/10/27
UN Women and the Government of Japan supports women entrepreneurs amidst Sri Lanka’s crisis

2022/10/19
Japan to Support Humanitarian Demining Activities in Northern Sri Lanka

2022/10/17
Japan Provides USD 8.6 Million through IOM Sri Lanka and Maldives to Strengthen Border Management Capacity on Preventing Infectious Disease Outbreaks

2022/10/17
Japan Supports a Sewing & Training Centre in Galle District for Returnee Migrants in Collaboration with the Government of Sri Lanka and IOM

2022/9/30
Japan Signed the Emergency Grant Aid of USD 3.5 Million for Sri Lanka

2022/9/16
Japan decides Additional Support for Food Security and Health for the People of Sri Lanka

2022/9/16
Outline of Japan's Major Grant Assistance to Sri Lanka in 2022 [564KB] 

2022/9/12
ADB AND JAPAN SUPPORT FOOD SECURITY AND LIVELIHOOD RECOVERY IN SRI LANKA

2022/9/7
“Japanese Foreign Minister's Commendation” awarded to Sri Lanka Eye Donation Society

2022/8/29
Japan Hands Over Food Donation to Help Sri Lanka Respond to Rising Food Insecurity

2022/8/23
Deshamanya Prof. W. D. Lakshman and Mrs. Kalyani Lakshman Receives “The Order of the Rising Sun” on 22nd August

2022/8/19
Japan Provides JPY 500 Million Grant Assistance for Strengthening Medical Capacity of the Sri Jayewardenepura General Hospital

2022/8/9
Japan provides Rs.761 million grant aid for Human Resource Development Scholarship (JDS) project

2022/8/9
Japan Hands over Emergency Medicines and Commodities for Pregnant Women and Adolescent Girls though the Project “PROMISES” under the partnership with UNFPA

2022/8/9
Japanese Foreign Minister’s Commendations awarded to Senior Prof. H.D. Karunaratne

2022/7/28
Japan hands over life-saving medicines procured through UNICEF in response to the economic crisis

2022/7/4
Japanese Ambassador MIZUKOSHI Travels to the Northern Part of Sri Lanka

2022/7/1
Japan to Extend US$ 0.7 million for Humanitarian Demining in Northern Sri Lanka

2022/5/20
Japan grants USD 3 Million Humanitarian Emergency Assistance to procure essential medicines and food through UNICEF and WFP
 

Overview of Japan's Economic Cooperation to Sri Lanka

Japan’s cordial relationship with Sri Lanka dates back to 1952, when Japan established diplomatic relations with Sri Lanka (then Ceylon). Since then, Japan has been a long- time partner in Sri Lanka’s socio-economic development as well as in the process of peace enhancement and reconciliation. Japan has also promptly provided relief and reconstruction assistance for conflict affected communities and those affected by natural disasters such as floods, droughts and tsunami.

In 2022, the 70th anniversary of the establishment of diplomatic relations between the two countries, Japan has provided a total of USD 104 million in grant assistance to Sri Lanka, including USD 77.8 million in humanitarian assistance, of which this USD 46 million as fuel assistance. This is the highest amount of annual grant assistance by Japan to Sri Lanka in its history, and testament to Japan's strong commitment for its continued solidarity with Sri Lanka in the midst of the current economic crisis. [PDF : Japan’s major grant aid to Sri Lanka (Decided in 2022 alone)]

As of the end of March 2021, the Government of Japan has provided around 1,435 billion Japanese Yen (JY) as assistance to Sri Lanka under its various funding schemes that have benefitted people in all parts of the country including those in conflict affected areas. This assistance is provided through several funding schemes such as Grant Assistance, Technical Cooperation, and Yen Loan scheme and mainly executed by the Japan International Cooperation Agency (JICA) in close cooperation with the Government of Sri Lanka. In addition, Japan provides support through UN Agencies, World Bank, Asian Development Bank and local, Japanese, and international NGOs.     

Japan’s assistance to Sri Lanka mainly focuses on two areas which are inter-related, and the assistance is expected to produce synergetic effects;

1. Consolidation of Peace and Reconstruction, and
2. Medium and Long-term Vision for Development

In this context, Japan has engaged in the agendas of  i) post conflict reconstruction, ii) socio-economic infrastructure, iii) poverty alleviation, iv) human resources development and v) climate change adaptation and mitigation.

Recent Major Projects

  • The Construction of the Bandaranayake International Airport - Rs. 20.7 billion
  • Baseline Road - Rs. 12.5 billion
  • Expansion of the Colombo Port - Rs. 130.6 billion
  • Southern Transport Development Project - Rs. 60.7 billion
  • Provincial/Rural Roads Development Project - Rs.17.8 billion
  • New Mannar Bridge and improvement of the Causeway - Rs. 3.1 billion
  • Upper Kotmale Hydro Power Project - Rs. 63.3 billion
  • Vavuniya- Killinochchi Transmission Line - Rs. 4.5 billion
  • Solar Electric Power Generation - Rs. 1.4 billion
  • Kandy City Wastewater Management Project - Rs. 23.6 billion
  • Eastern Province Water Supply Development Project - Rs.8.2 billion
  • Pro-Poor Economic Advancement and Community Enhancement Project - Rs.6.4 billion
  • Improvements of Anuradhapura Teaching Hospital - Rs. 3 billion
  • Improvement of central functions of Jaffna Teaching Hospital - Rs. 3.8 billion
  • Digital Topographic Mapping of the Northern Province - Rs. 836 million
  • Development Planning for the Rapid Promotion of Reconstruction and Development in Jaffna District – Rs. 836 million.
  • Development Planning for the Urgent Rehabilitation of Resettlement Community in Mannar District – Rs. 836 million
                     
           Anuradhapura Teaching           Upper Kotmale Hydro               Manual de-mining
                        Hospital                              Power Project

                    
                Sigiriya Museum                             Bridge in Badulla                                Mannar Bridge
                                                                  constructed through GGP


The recent major assistance projects for  socio-economic infrastructure include: i)  improvement of Anuradhapura Teaching hospital  by providing new facilities with medical equipment; ii) construction of  Vavuniya- Kilinochchi Transmission Line, iii) improvement of central functions  of Jaffna Teaching Hospital; iv) construction of the new Mannar Bridge and  improvement of the Causeway; v) improvement of Kandy City Wastewater Management;  vi) Eastern Province Water Supply Development; vii) Provincial/Rural Roads  Development; viii) construction of Upper Kotmale Hydro Power; ix) development  of Solar Electric Power Generation in Hambantota, x) construction  of Southern Highway from Kottawa to Kurundugahahetekma, and xi) construction of  the first section of the Outer Circular Highway in the outskirts of Colombo. These  projects are expected to contribute not only to the development and  welfare of all people of Sri Lanka, but also serve as a symbol of friendship  between the people of Japan and the people of Sri Lanka. Especially, the  projects in the Northern and the Eastern Provinces are expected to promote sustaining  peace and reconciliation among all communities.

Under Japan’s Technical Cooperation, a total of 11,057 Sri Lankan professionals and students have been trained in various fields in Japan and 1,724 Japanese Experts and 788 Japan Overseas Cooperation Volunteers (JOCVs) have been dispatched to Sri Lanka up to the end of March 2009. At present, 56 Volunteers are actively working at the grassroots level and over 20 Japanese experts are working with counterparts in relevant Ministries and institutions. In order to strengthen the capacity of Northern and Eastern provincial authorities, Japan is currently involved in a project to build capacity of the local officials concerned. In addition, there are several scholarships offered by the Government of Japan to young Sri Lankan public officers in various fields of expertise. 15 officers selected for the Human Resource Development scholarship are presently pursuing their post-graduate studies in three universities in Japan.

The Government of Japan also provides  assistance to Sri Lanka through international agencies such as the World Bank, Asian  Development Bank and UN Agencies via Japan Special Fund, Japan Fund for Poverty  Reduction, Japan Social Development Fund, and Human Security Trust Fund etc. The  Eastern and North Central Provincial Road Project, Poverty Reduction through  Rural Infrastructure Maintenance, US$ 11 million (approximately Rs. 1,250  million) through IOM, UNHCR, UNICEF, and ICRC for providing shelter, food,  water and sanitation to Internally Displaced Persons (IDPs) living in camps. In  addition, US$ 7 million (approximately Rs.800 million) was provided through  seven Japanese NGOs operating in Sri Lanka under the Japan Platform Fund to  meet emergency humanitarian needs in conflict affected areas.
 

Japan’s Role in the Private Sector of Sri Lanka

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2022/12/14
Ambassador MIZUKOSHI attended the opening ceremony of Toyota Lanka Fulfilment Center
 
2022/12/12
H.E. Ambassador Mizukoshi attended a business event co-hosted by the Japan Chamber of Commerce and Industry in Sri Lanka (JCCI-SL) and the Sri Lanka – Japan Business Council of the Ceylon Chamber of Commerce (SLJBC)
 
Sri Lanka and Japan have enjoyed healthy bilateral relations in the area of trade and investments. In this regard, the Japanese presence in the private sector of this country has been maintained despite various challenges. As of the end of October 2021, there are 107 Japanese companies operating in the country. As good corporate citizens of Sri Lanka, they have made a substantial contribution to Sri Lanka’s economy through creating employment, generating exports and transfer of technology to this country. In this regard, the Japanese Commerce and Industry Association in Sri Lanka are playing a coordinator role among the Japanese enterprises in Sri Lanka. The Japan External Trade Organization (JETRO) is playing an important role in further promoting bilateral trade between our two countries by disseminating trade related information and responding to various queries made by the Sri Lanka business sector.
 
Improving the business environment is very crucial at this stage, especially in the context of new investment opportunities that have emerged in the entire island including the Northern and the Eastern parts of the country. We hope that the Government of Sri Lanka will capture this opportunity by creating a stable macroeconomic environment and reducing the cost of doing business where businesses and industries could thrive. It is in this context that the Government-Private Joint Forum was launched in 2009, which forms a framework for improving the business environment for the Japanese companies operating in Sri Lanka. The regular discussions between the Sri Lankan Government, Japanese companies and the Embassy of Japan will not only benefit the Japanese companies, but will also contribute to improving the business environment in Sri Lanka.
 
One significant event on promoting the Sri  Lanka and Japanese businesses is the Joint Meeting of the Sri Lanka-Japan and  Japan-Sri Lanka Business Co-operation Committees which is due to hold its 16th  gathering in Tokyo in 2011. This event will provide opportunity for business  partners to share experiences, meet new business partners, obtain guidance and  insight on investment opportunities and forge new heights in promoting and  enhancing Japanese investment, bilateral trade, and tourism between the two  countries.