SL’s FDI to increase rapidly after debt restructure – Japan’s Ambassador
As and when Sri Lanka obtains the IMF assurance on debt restructuring, foreign investments to Sri Lanka will increase rapidly said Ambassador of Japan to Sri Lanka Hideaki Mizukoshi at the ‘Sri Lanka Japan Way forward in Bilateral Trade and investment’ event organised by the Sri Lanka Japan Business Council (SLJBC) and Japan Chamber of Commerce and Industry Sri Lanka. (JCCISL).
He said that this has to be followed up by reforms which the government is currently engaged in. The Ambassador said that presently the investor appetite for Sri Lanka is low as Sri Lanka went in for a self default as well. “The bailout package from the IMF would be the turnaround point for Sri Lanka.”
He said when this is done Japan can also look at a Free Trade Agreement with Sri Lanka. The Ambassador said that Japanese entrepreneurs would be keen to invest in Renewable Energy, ICT, Tourism, Fisheries, Port and automobile accessory manufacturing sectors.
Chairman, JCCISL, H. Tanaka said that Sri Lana should have consistent policies to woo investors. “Whenever government changes, policies too change and this is risk for investors.” He also said that going in for a self default by Sri Lanka is not an encouraging sign for investors. Meanwhile, joining the panel discussion online, the Sri Lankan Ambassador to Japan, Rodney Perera said that Sri Lanka should promote tourism more aggressively in Japan.
“In 2019 when Sri Lanka had around 49,000 Japanese arrivals, Thailand attracted 1.8 million and this mismatch should be addressed.”
Chairman Export Development Board (EDB) Suresh De Mel said that exports to Japan are very low and local companies should look at more organic food exports. Since Japan is a quality conscious country Sri Lankan companies should look at having more Joint ventures with them to enhance local quality of production.
Director General Board of Investments, Renuka Weerakone said that in the past 15 years FDI from Japan has amounted to USD 420 million.
“There is much potential for further investment especially in identified manufacturing subsectors such as Pharmaceuticals and Medical Devices, Apparel and Textiles, Electrical and Electronic Products, Auto Components and other Machinery and Appliances.To encourage more Japanese investments into Sri Lanka, the BOI has entered into MoUs with Bank of Tokyo Mitsubishi, UFJ and Mizuho Bank Ltd in 2014, both globally reputed Japanese Banks.”
She recalled that the first mega FDI from Japan was way back in 1972 with the establishment of a JV with Lanka Ceramic Corporation and Noritake. “Today there are 82 Japanese BOI ventures employing over 7,000.”