Japan–Sri Lanka to further deepen cooperation in security, economy, investment

Both sides recognised that the steady implementation of  various reforms under the IMF programme and the early completion of the  debt restructuring process

Recalling the long-standing friendly relations between  Japan and Sri Lanka, Japan and Sri Lanka reaffirmed their intention to  further deepen and expand cooperation, including inter alia in the areas  of security, economy, investment, and development cooperation, under  the framework of the deepened and expanded Comprehensive Partnership  established between the two countries. >>A 
The Prime Minister of Japan, ISHIBA Shigeru met with the  President of Democratic Socialist Republic of Sri Lanka, Anura Kumara  Dissanayake, in Tokyo during his Official Visit to Japan from September  27 to 30, Ministry of Foreign Affairs said.   

Prime Minister ISHIBA commended the trajectory of recovery  of the Sri Lankan economy through the steady implementation of the IMF  programme and debt restructuring, and reiterated Japan’s continued  support for Sri Lanka’s reform efforts.   

President Dissanayake expressed appreciation for Japan’s  leadership as one of the Co-Chairs of the Official Creditor Committee  (OCC), enabling early signing of Sri Lanka’s debt restructuring,  including Japan being the first OCC member to conclude a bilateral  agreement on debt restructuring between a member country of the OCC and  Sri Lanka in March this year.   

Both sides recognised that the steady implementation of  various reforms under the IMF programme and the early completion of the  debt restructuring process will further restore investors’ confidence in  the Sri Lankan economy.   

They affirmed the importance of the provision of foreign loans that takes into account debt sustainability and transparency.  

President Dissanayake expressed appreciation for Japan’s  continued support, including the resumption of 11 previously signed yen  loan projects, in 2024, ahead of other creditor countries.  

Both sides welcomed the recommencement of the bidding of  the Bandaranaike International Airport Development Project (Phase 2),  which will contribute to strengthening connectivity and promoting tourism in  Sri Lanka, and confirmed their commitment to expediting the related process  for early completion.   

They also confirmed the importance of steadily implementing  already existing yen loan projects, including the development and  improvement of transmission lines and the digitalisation of terrestrial  television broadcasting.   

Both sides welcomed the signing and exchanging of Notes  concerning Japan’s Grant Aid for the Project for the Enhancement of  Productivity in the Dairy Sector with a view to promoting inclusive  economic development of Sri Lanka through the improvement of the livelihoods  of small-scale dairy farmers.   

For the sustainable economic development of Sri Lanka,  Japan and Sri Lanka confirmed the importance of developing  infrastructure and transport solutions to streamline urban traffic in  major cities such as Colombo.   

The two countries concurred to further discuss the ways to  strengthen and enhance exports with Japanese investment based on the  Conceptual Roadmap on “Building an Export-Oriented Industrial Corridor”.    

In this connection, both sides concurred to resume the  Inter-governmental Economic Policy Dialogue, which jointly explores the  possibilities of enhancing Sri Lankan industry and economy. Both sides  noted the significant opportunity that lies in the area of ​​trade and  investment and confirmed the importance of further improving the  business environment in Sri Lanka, including transparency,  predictability, and non-discriminatory treatment. In this regard, both  sides welcomed the launch of Japan-Sri Lanka Committee on Business  Environment in August this year, which is to be held on a quarterly  basis.   

President Dissanayake shared the qualitative change in the  investment and business environment emerging in Sri Lanka following the  election of the current Government. He invited Japanese corporates to  explore the opportunities available and invest in several  high-potential sectors in Sri Lanka.   

Both sides confirmed the importance of deepening defence  and security cooperation between the two countries and enhancing the  security and deterrence capabilities of Sri Lanka to ensure the peace  and stability of the Indian Ocean Region.   

From this perspective, both sides welcomed the provision of  advanced Japanese UAVs (Unmanned Aerial Vehicles) for enhancing  maritime surveillance and disaster relief capabilities, through the  first Official Security Assistance (OSA) project vis-à-vis Sri Lanka,  decided during the visit.