Monday, February 17, 2020

Japan interested in investing in high growth sectors in Sri Lanka


Japan announced yesterday that steps would take to improve its long-standing bilateral relations with Sri Lanka further. The visiting Japanese Minister of State for Regional Revitalization. Kozo Yamamoto, gave this assurance when he delivered a courtesy call at the Presidential Secretariat to President Gotabaya Rajapaksa.

"Sri Lanka has a government that is reliable and balanced. The economy is also making progress. In this perspective, a favorable investment environment for Japanese shareholders has established in Sri Lanka," the Minister of State said, according to a statement issued by the President's media.
"As a country that has conquered industries such as security, and high-quality public services development among many other areas, Japan has a lot to give to Sri Lanka," Yamamoto said. President Rajapaksa explained that Sri Lanka's growth rate, which in 2014 was around 7 percent, has since declined, and the most significant challenge before him is to revive the economy.
The President also called on Japanese Minister Yamamoto to invest in high-tech assembly plants. Minister Yamamoto responded positively and promised to advance Sri Lanka within the business community in Japan.
Sri Lanka and Japan have discussed the commitment to further strengthen bilateral cooperation between the two countries via vital sectors of economic development. Some of the critical areas for such cooperation have identified as,
  •         Information technology (IT),
  •        Harbor infrastructure,
  •       Eastern Container Terminal (ECT) Development,
  •       Highways and Freeways,
  •       Agriculture,
  •      Digitalization of television transmission,
  •      Catastrophe prevention, and
  •      Defense cooperation.

“Our country is small, but we have a talented, knowledgeable, and capable workforce. I anticipate building an employment-oriented, technology-driven financial system. We pursue Japan’s aid to reach that goal,” President Rajapaksa has stated. The President has further noted that he was open to foreign investments from all nations, especially the countries from surrounding regions, such as China, Japan, India, South Korea, Australia, and Singapore.
OSL Take: The commitment of the Japanese government to further strengthen its bilateral dealings with Sri Lanka is a positive sign for Japanese businesses to explorebusiness/investment opportunities on the island. Given the economic sectors the Japanese government has shown interest in investing in, local companies could look at forming joint ventures/partnerships with Japanese companies to engage in projects in the relevant sectors.
VBS/AT/17022020/Z_TB4 

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