By: Staff Writer
April 15, Colombo (LNW): Amid global economic uncertainty, Japanese Ambassador Akio Isomata has emphasized the urgent need for Sri Lanka to implement strategic reforms, diversify its exports, and reinforce foreign investment. At an interactive session organized by the Sri Lanka-Japan Business Council and Expo 2025, the Ambassador pledged Japan’s continued support for Sri Lanka’s economic recovery efforts. Speaking under the theme ‘Aligning Sri Lanka’s economic revival with opportunities in Japan’, he stressed the importance of resilience and collaboration during this turbulent period.
Ambassador Isomata pointed to the “US typhoon”—a metaphor for the global instability stemming from trade tensions and shifting policies—and said that diplomacy, trade policy, and domestic reform were vital areas where Japan and Sri Lanka should work together. He asserted that current challenges also presented an opportunity to pursue meaningful innovation and structural reform.
On the diplomatic front, Isomata advocated for preserving the global free trade system, highlighting its roots in post-World War II institutions like the Bretton Woods system. “We must protect the principles of free trade,” he said, cautioning against abandoning decades of multilateral cooperation.
Regarding trade, the Ambassador called for Sri Lanka to diversify its exports, supply chains, and trade destinations. He suggested that stronger or new Free Trade Agreements (FTAs) could serve as a buffer against external shocks and enhance economic resilience.
Domestically, Isomata emphasized the need for structural reforms and a long-term industrial policy to increase competitiveness and productivity. He underscored that enhancing the investment climate was crucial to attracting foreign capital. “We must continuously improve the business environment and listen to the concerns of foreign investors,” he noted.
Praising Sri Lanka’s economic progress under the IMF framework, the Ambassador welcomed the recent debt restructuring agreement between Sri Lanka and its creditors—led by Japan, France, and India—as a major achievement. He noted that Sri Lanka had registered 3% real GDP growth in 2024 and held $6.5 billion in foreign reserves by March, marking a pivotal moment for foreign investment.
He also spoke of the importance of deepening economic cooperation between Japan and Sri Lanka, particularly in labor mobility. Two Japanese programs—the Technical Intern Training Program (TITP) and the Specified Skilled Worker (SSW) scheme—offer Sri Lankan youth opportunities to gain industry experience in Japan for up to a decade.
Meanwhile, Expo Osaka 2025 Commissioner General Sampath Nissanka highlighted the immense potential for Sri Lanka at the upcoming Expo in Japan. With over 160 participating nations and 28 million visitors expected, Expo 2025 presents a global platform to showcase Sri Lanka’s heritage and investment prospects.
The Sri Lankan Pavilion will feature tourism counters, a tea bar, and business engagement spaces to promote trade and cultural exchange.
Describing the Expo as more than just an exhibition, Nissanka said it would be a six-month dialogue on sustainability, technology, and culture. “It’s a rare chance to engage with the world,” he concluded, calling on Sri Lankan industry leaders to seize this historic opportunity.
