Sri Lanka Secures Major Japanese Support for Growth and Stability

COLOMBO (News 1st); Sri Lankan President Anura Kumara Dissanayake met Japanese Prime Minister Ishiba Shigeru in Tokyo on Monday (29), reaffirming the two nations’ commitment to deepen their longstanding partnership across economic, security, and development spheres.

In a joint statement issued after the talks, both leaders underscored their intention to expand cooperation under the Comprehensive Partnership framework.

The discussions focused on economic recovery, infrastructure development, trade, and regional security.

Prime Minister Ishiba praised Sri Lanka’s progress in stabilizing its economy through IMF-backed reforms and debt restructuring. He reiterated Japan’s continued support for these efforts, highlighting Japan’s role as a co-chair of the Official Creditor Committee and its early bilateral agreement on debt restructuring earlier this year.

Both sides agreed that completing debt restructuring and implementing reforms would restore investor confidence and ensure sustainable growth.

President Dissanayake expressed gratitude for Japan’s resumption of 11 yen loan projects in 2024, ahead of other creditors.

The leaders welcomed the recommencement of the Bandaranaike International Airport Development Project (Phase 2), aimed at strengthening connectivity and boosting tourism.

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They also stressed the importance of advancing projects in energy transmission and digital broadcasting.

Further, the two nations signed agreements to enhance Sri Lanka’s dairy sector, supporting small-scale farmers and inclusive economic growth. Infrastructure and transport solutions for Colombo and other major cities were also prioritized to ease urban congestion.

On trade and investment, both sides agreed to revive the Inter-Governmental Economic Policy Dialogue and accelerate efforts to build an export-oriented industrial corridor. They emphasized improving Sri Lanka’s business environment through transparency and predictability, while encouraging Japanese companies to explore new investment opportunities in high-potential sectors.

Security cooperation featured prominently in the talks, with both countries recognizing the strategic importance of the Indian Ocean region.

Japan announced the provision of advanced unmanned aerial vehicles (UAVs) to Sri Lanka under its first Official Security Assistance initiative, aimed at enhancing maritime surveillance and disaster response capabilities.

President Dissanayake invited Japanese corporates to capitalize on Sri Lanka’s evolving investment climate, signaling a new chapter in bilateral relations marked by economic resilience and regional stability.