• Japanese Ambassador to Sri Lanka cites slow permission, flawed policies as reason
• Expresses interest in investing in electric tuk 

Despite the decades-long diplomatic and trade ties between the countries since 1952, Japanese businesses currently have lost confidence in Sri Lanka due to the abrupt and arbitrary policy changes that have been made by the Government of Sri Lanka (GoSL), says the Ambassador for Japan in Sri Lanka Mizukoshi Hideaki.

Ambassador Hideaki stated: “On the governance and transparency of the economic policies, in the past, there have been very frequent changes of policies that have caused the loss of trust by Japanese businesses.” 

He made these remarks during the Q and A session of The Ceylon Motor Traders' Association (CMTA) stakeholder meeting last morning (29) responding to the question raised by the moderator of the session on Japan's outlook on the Sri Lankan economy and the island’s economic revival. 

He further emphasised that other than the improvement of policies related to rooting up corruption and narrowing of the income gap, improving the efficiency of the State-Owned Enterprises (SOEs) to become investor-friendly, is looked forward to by Japan since Sri Lanka’s government permission procedures are “slow”. 

“It hinders the appetite for Japanese investments,” said Ambassador Hideaki.

Responding to the inquiry raised by the moderator of the session, on building Japanese confidence by the private sector of Sri Lanka, he stated that the sincerity of the Sri Lankan partners and sound communication play a key role in making business decisions.   

Speaking of the investments on electric vehicles (EVs) in Sri Lanka, the Ambassador noted that the Japanese companies are interested in investing in electric tuks where the existing tuks are expected to be converted into electric vehicles prior to a large-scale vehicle electrification as it can even be charged at homes. 

“Japanese companies – even though it is not a government (of Japan) initiative – are interested (in electrification of tuks). It is very interesting,” he said, while pointing out that there is no hindrance to implement the said scheme in the island.    

However, he also added that Sri Lanka lacks infrastructure for EVs – such as power generation, and EV charging stations – while power generation through coal is “pointless” since it is not sustainable.   

He stressed that Japan supports and prioritises the sustainable development of Sri Lanka along with improvement in the investment environment in Sri Lanka. Meanwhile, the Government of Japan supports Sri Lanka’s efforts in order to meet the conditions of the International Monetary Fund (IMF) since the vehicle-import restrictions are still in place since March 2020, when a question raised by an automobile importer in the audience to the Ambassador on whether the Japanese Embassy plays any role in encouraging the GoSL on lifting import restrictions for vehicles in 2023.   

Ambassador Hideaki participated at the event as the guest speaker and a Q and A session was moderated by Yasendra Amerasighe, the Immediate Past President of the CMTA. The other attendees at the event were Ministry Secretaries, Heads of the Automobile industry, and CMTA representatives.