By: Staff Writer
August 21, Colombo (LNW): The Board of Investment of Sri Lanka (BOI) has unveiled an ambitious plan to create the country’s first-ever investment zone exclusively for Japanese investors—an initiative aimed at deepening bilateral economic ties and leveraging unique Japanese industrial practices.
BOI Chairman Arjuna Herath first floated the idea during the Sri Lanka–Japan Investors’ Meeting and Conference at the World Trade Center in Colombo, inviting small, medium, and large Japanese firms to participate in a dedicated industrial park.
He noted that Japanese industrial culture and methods differ significantly from those of other nations, justifying the need for a tailored zone that can best accommodate Japan’s operational strengths.
Herath emphasized Sri Lanka’s long-standing appreciation for Japanese investments and highlighted the government’s efforts to create a highly conducive investment environment. Japanese attendees reportedly responded favorably, expressing interest across sectors such as manufacturing, technology, and services.
Importantly, this would mark the first such single-nation–focused investment zone in Sri Lanka—a significant milestone that positions Japan as a uniquely valued investment partner.
This new development complements Sri Lanka’s existing network of Special Investment Zones (including Export Processing Zones and Industrial Parks) administered by the BOI. Currently, there are 15 such zones spread across the country, including Katunayake, Biyagama, Koggala, Mirigama, Horana, Kandy and Seethawaka among others.
For example, the Katunayake EPZ, established in 1978 near the international airport, is the country’s largest, covering 332 acres and serving over 31,000 workers. It recently received acclaim from fDi Intelligence, earning a special honorable mention in the 2022 Free Zones Awards for its reinvestment strategy—where four large tenant firms pledged an additional US$ 26.5 million in investment and nearly 1,000 new jobs.
Overall, the BOI recorded a 38 % year-on-year increase in FDI receivable, rising from US$ 780 million in 2021 to US$ 1,076 million in 2022. Export figures (merchandise plus services) also rose by 7 % to US$ 9.385 billion, and employment under BOI zones grew by 3 %, adding 14,332 positions. Manufacturing, telecommunications, and port development led sectoral FDI growth, with port development surging an impressive 329 %.
Building on this performance, the government and BOI are moving forward on plans to establish five new investment zones across the North, East, Northwest, and Southern provinces—targeting areas like Kilinochchi, Paranthan, Trincomalee, Kankesanthurai, and Bingiriya Phase 2.
In summary, Sri Lanka’s BOI is championing a multifaceted strategy: boosting FDI with compelling results, expanding geographic reach through new zones, and now pioneering the country’s first nationality-specific industrial park for Japanese investors. This layered approach signals a bold new chapter in attracting targeted, high-quality foreign investments.
