Sri Lanka and Japan Forge Deeper Economic Ties with New Grant Agreement for Dairy Sector Productivity Enhancement

In a landmark step towards strengthening bilateral cooperation, President Anura Kumara Dissanayake signed a Grant Agreement with the Japan International Cooperation Agency (JICA) today for the “Project for the Enhancement of Productivity in the Dairy Sector” during his official visit to Japan. This agreement marks a new chapter in Japan–Sri Lanka development collaboration, underscoring Japan’s long-standing commitment to Sri Lanka’s sustainable economic advancement.

President Dissanayake, visiting Japan at the invitation of the Japanese Government, held a series of high-level meetings in Tokyo aimed at deepening economic, technological, and social partnerships between the two nations. Among the most notable of these engagements was his discussion with JICA President Dr. Tanaka Akihiko at the Imperial Hotel this morning.

A Renewed Commitment to National Development

During the meeting, President Dissanayake expressed deep appreciation for Japan’s renewed concessional lending support through JICA, which has resumed yen loan assistance after a period of pause. He acknowledged that such cooperation is vital for Sri Lanka’s ongoing economic recovery and development.

Dr. Tanaka Akihiko, reaffirming JICA’s commitment, emphasized the importance of revitalizing the private sector, industry, and agriculture as engines of sustainable economic progress. He also announced the resumption of the stalled Bandaranaike International Airport (BIA) development project in Katunayake and expressed JICA’s intention to continue closely monitoring Sri Lanka’s macroeconomic management.

The leaders also discussed collaboration on key infrastructure and sustainability initiatives, including the implementation of a comprehensive Waste Management Plan for the Western Province.

Strategic Vision for Digital Future

Sri Lanka’s evolving digital ambitions were a central theme throughout the President’s engagements. The delegation appealed for Japanese support in building the island’s digital economy, especially in advancing artificial intelligence (AI) capabilities and establishing a regional AI Neutral Centre to position Sri Lanka as a hub for digital innovation in South Asia.

Dr. Hans Wijayasuriya, Chief Advisor to the President on Digital Economy, further elaborated on these priorities at the Japan–Sri Lanka Business Forum, held on September 29 at the Japan External Trade Organization (JETRO) headquarters. His presentation highlighted digital transformation, AI, and data centre infrastructure as key investment areas.

Japan–Sri Lanka Business Forum: Unlocking New Opportunities

Addressing over 200 senior Japanese business leaders at the forum, President Dissanayake extended a strong invitation to the Japanese private sector to explore emerging economic opportunities in Sri Lanka. “We are at a critical juncture of economic rebuilding,” the President stated, “and we welcome Japan’s partnership in sectors ranging from manufacturing and ICT to renewable energy and tourism.”

The event was jointly organized by JETRO, Japan’s Ministry of Economy, Trade and Industry (METI), the Sri Lankan Embassy in Japan, and the Board of Investment of Sri Lanka (BOI). It featured dedicated networking sessions between Sri Lankan and Japanese business leaders, as well as a presentation from BOI outlining priority investment sectors and the government’s investor-friendly reforms.

On the sidelines, President Dissanayake held talks with JETRO Chairman Mr. Norihiko Ishiguro, who pledged to strengthen the bridge between Japanese and Sri Lankan business communities and facilitate mutually beneficial partnerships.

Strengthening People to People Ties

In a separate meeting, the President met with Mr. Yohei Sasakawa, Founding Chairman of the Nippon Foundation. The discussion focused on furthering social development initiatives, including the renovation and modernization of 100 schools across Sri Lanka’s Northern and Eastern Provinces. President Dissanayake praised Mr. Sasakawa’s enduring dedication to Sri Lankan communities and his role in fostering lasting goodwill between the two nations.

A New Era in Japan–Sri Lanka Relations

This visit by President Anura Kumara Dissanayake signals a renewed momentum in Japan–Sri Lanka relations, characterized by economic partnership, technological cooperation, and people-centered development. The signing of the dairy productivity enhancement project is not only a symbolic gesture but also a practical investment in Sri Lanka’s food security and rural livelihoods.

As Sri Lanka navigates its path toward economic stabilization and growth, Japan’s support through both government and private sector channels will remain pivotal. With today’s agreements and engagements, both countries have taken confident strides toward a shared future of sustainable prosperity.

Reporting by Grace Jacobs – Tokyo.