At the 11th Meeting of Japan Sri Lanka Government-Private Joint Forum

Mr. Mangala Yapa, Chairman of the Board of Investment,
Mr. Hiroki Horikawa, Chairman of the Japanese Chamber of Commerce and Industry in Sri Lanka (JCCISL),
Representatives of the JCCISL,
Representatives of the Government of Sri Lanka,
Ladies and gentlemen,
 
Good morning.

It is my honour and privilege to speak a few words at the 11th meeting of Japan　Sri Lanka Government Private Joint Forum.

The influx of Foreign Direct Investment (FDI) to Sri Lanka has steadily risen to reach a record level of USD 1.6 billion in 2018 fueled primarily through robust Asian investments in infrastructure projects. FDI is one of the important driving forces in economic growth. Although Sri Lanka suffered from economic setbacks due to political uncertainties, especially after the Easter Sunday attacks, Sri Lanka has great potential to attract more FDI, thanks to its location at a hub of the east-west shipping route, its proximity to its rapidly growing Indian Subcontinent, and its people’s diligence and high-level education.

Bilateral economic and business relations between Japan and Sri Lanka have exhibited significant progress in recent years. Trade volumes between the two countries soared by approximately 30% between 2014 and 2018. Discussions held with incumbent and prospective Japanese investors highlight their profound enthusiasm to commence business operations in the country. Japanese investments will continue to contribute to the development of the Sri Lankan economy, in diversified areas including manufacturing, tourism and financial services.

While the interest of the Japanese business community in setting up operations in Sri Lanka is undoubtedly encouraging and the Government of Sri Lanka’s invitation to the Japanese business community to invest in industrial zones set up across the country is welcoming, prevalent bottlenecks in doing business in Sri Lanka should be addressed to further Japanese investment in the country. These include sudden revisions to guidelines on government tender procedures, changes in tax systems without prior notice, delays in tax refund and more often than not, lack of transparency and co-ordination between government institutions.

Given that this forum consists of representatives from the Japanese Chamber of Commerce and Industry, and officials of the BOI and other relevant government ministries, this is an ideal platform to discuss and alleviate inherent bottlenecks which deters FDI from Japan. Thus, this forum is critical not only to solve issues encountered by Japanese companies currently operating in this country but also to raise awareness of the Government of Sri Lanka about what is needed to improve the investment climate of Sri Lanka. In this connection, I would like to emphasize the importance of following-up on what will be discussed and agreed upon at this forum.
 
In closing, I would like to reiterate that I will do my utmost to promote mutually benefiting business opportunities for both Sri Lanka and Japan through my embassy but further accentuate the fact that Sri Lanka is indeed a resilient economy which has withstood great strife in the past. I am therefore confident that given the island nation’s strategic location coupled with a dedicated leadership, long term strategic economic policies and transparent procedures for policy implementation, Sri Lanka will reap its full potential in the very near future.

Thank you very much for your attention.