Japan eyes Sri Lanka for electronics
The Morning: Sri Lanka has the potential to undertake electronics and electrical goods manufacturing for Japanese businesses; Japan External Trade Organisation (JETRO) Country Representative Hiroki Oi told The Daily Morning Business yesterday.
“We see a potentially good opportunity in the electronics and electrical goods manufacturing sector in Sri Lanka, as the cost of production is comparatively affordable. As Japanese we see that the working culture in Sri Lanka is also favourable for Japanese business.”
According to the Embassy of Sri Lanka in Japan, in 2024, Japanese investments in Sri Lanka totalled to around $ 350 million, directed into 60 enterprises, and have contributed to job creation and technology transfer.
“We see opportunities in the technological sector in Sri Lanka, in the same way we see opportunities in the Middle East and across South East Asia,” noted Oi, adding that although Sri Lanka’s market size is not big, geographically, Japan sees it as advantageous, as it can be a gateway to exporting to India.”
“At the moment, Japanese companies are focusing on skills-building and Japanese language skills development among Sri Lankan locals, for the purpose of employing Sri Lankans in Japan,” Oi added.
Japanese investment in employment in Sri Lanka had cumulatively created over 12,000 employment opportunities by 2024, Board of Investment (BOI) data reveals.
“At present, there are about 60 enterprises with Japanese investments, operating in Sri Lanka under the BOI law,” the Embassy of Sri Lanka in Japan said in a statement, adding that “there are a number of small-scale enterprises with Japanese investments operating under the normal laws of the country that are engaged in restaurants, apparel, tourism and travel, and export trading.”
OSL take:
Sri Lanka’s manufacturing industry has shown a steady growth even amidst the economic crisis faced by the country a few years back. Statistics by the Central Bank of Sri Lanka has shown that the manufacturing and exports industries have recorded a steady growth with the potential for further growth. The improving ease of doing business environment in the country and the skilled workforce in Sri Lanka have added to the country’s attraction as a manufacturing destination with Sri Lanka’s geographical positioning in the Indian Ocean region as well as the strong trade tied enjoyed with many foreign countries playing a pivotal role in the country becoming an emerging business destination in the region. The interest shown by Japan to set up the manufacturing of Japanese electronic goods in Sri Lanka also serves to boost confidence among other foreign businesses/investors to explore similar business/investment opportunities in Sri Lanka. Given that Sri Lanka is working towards becoming a regional hub, foreign businesses/investors could confidently look at setting up bases in Sri Lanka to engage with other countries in the region. With local businesses in the manufacturing and exports industries recording growth and profits indicating the increasing business potential in Sri Lanka, foreign businesses/investors could look at expanding operations through local collaborations.
| Article Code : | VBS/AT/20250521/Z_1 |