Tokyo / Colombo – October 2025
Ceylon Chamber of Commerce Chairman Krishan Balendra addressed a gathering of leading Japanese companies in Tokyo, urging them to participate in Sri Lanka’s economic recovery following several years of financial challenges.
Sri Lanka has recently witnessed stabilization in macroeconomic indicators, including:
- GDP growth forecast at 5% for 2025, recovering from previous contractions.
- Inflation gradually easing to 8%, reflecting improved monetary policies.
- Foreign reserves showing moderate recovery, enhancing investor confidence.
Balendra highlighted sectors where Japanese companies can leverage mutual strengths:
- Apparel & Textiles: Sri Lanka remains one of the top exporters of high-quality garments, with a reputation for compliance, ethical labor, and sustainability.
- Agri-exports: Tea, spices, and processed foods have growing demand in Japan and East Asia.
- Renewable Energy: Solar, wind, and mini-hydro projects present collaboration opportunities.
- Logistics & Ports: The strategic location of Colombo Port as a gateway to South Asia offers shipping, warehousing, and transshipment advantages.
- IT & Digital Services: Sri Lanka has a skilled workforce in software development, BPO, and fintech solutions.
Strategic Implications
Balendra stressed that Japanese investment would not only help Sri Lanka modernize infrastructure and boost exports, but also create employment opportunities, encourage technology transfer, and improve bilateral trade ties.
📊 According to the Central Bank of Sri Lanka, FDI inflows reached USD 1.2 billion in H1 2025, with Japan ranking among the top five investor countries.
Analyst Insight:
“Japanese companies can benefit from Sri Lanka’s economic incentives, including tax holidays, free trade agreements, and export facilitation programs, while contributing to the island’s post-crisis growth,” said an economist from the Institute of Policy Studies.
