📈 Japanese Envoy Urges SL to "Walk the Talk" on Export Reforms

Japanese Ambassador Akio Isomata has called for immediate action to accelerate the proposed Sri Lanka-Japan-India export-oriented industrial corridor, warning that delays could lead to a loss of interest from Japanese investors. • Strategic Initiatives: The ambassador emphasized a 'Look East' policy to mitigate global shocks. The proposed tri-nation corridor is projected to potentially boost Sri Lanka's GDP by 9.3% by 2030. • Trade Performance: Exports to Japan currently average under US$ 200 Mn annually, reflecting significant underutilization of market potential despite existing ties. • Critical Requirements: Industrial Strategy: Urged the government to finalize a clearly defined industrial promotion policy to improve productivity. Trade Policy: Called for a robust drive toward export diversification and better utilization of FTAs. Business Climate: Stressed the need for vigorous reforms to enhance competitiveness and the ease of doing business to attract FDI. • Sector Focus: Emphasis was placed on integrating into the Indian market through Japan-backed frameworks, specifically targeting manufacturing and industrial exports to leverage India’s large import demand. _Source: Based on forum proceedings, May 2026._