As Sri Lanka charts a path toward economic recovery, Japan has stepped forward to encourage bold and timely economic reforms. During a recent high-level forum hosted by the Sri Lanka Japan Business Council and Expo 2025, Japanese Ambassador Akio Isomata emphasized the importance of reform-driven growth, investment promotion, and strengthened bilateral ties to navigate global economic challenges and unlock new opportunities for collaboration.
In the face of growing global economic uncertainty, Japan has urged Sri Lanka to seize the moment for meaningful economic reforms while reaffirming its commitment to strengthening bilateral ties. Japanese Ambassador Akio Isomata delivered this message at an event titled “Aligning Sri Lanka’s Economic Revival with Opportunities in Japan”, hosted by the Sri Lanka Japan Business Council and Expo 2025.
Economic Reforms: A Strategic Imperative
Ambassador Isomata emphasized that the current international landscape—marked by trade tensions and shifting economic policies—presents a critical opportunity for countries like Sri Lanka to embrace economic reforms that promote innovation, competitiveness, and resilience.
Referring to the economic turbulence caused by what he called the “US typhoon,” the Ambassador highlighted the importance of a collaborative approach across diplomacy, trade policy, and domestic restructuring. “This is a good opportunity for all of us to pursue real reform and true innovation,” he said. He strongly advocated for the preservation of the global free trade system, warning against the dismantling of the Bretton Woods framework that has underpinned international economic stability for the past eight decades.
Diversification and Structural Change
Speaking on trade policy, Isomata advised Sri Lanka to diversify its export portfolio, explore new markets, and strengthen supply chains under a strategic policy umbrella. He noted that well-crafted Free Trade Agreements (FTAs) could serve as safeguards against external shocks, reinforcing the need for timely economic reforms.
The Ambassador also stressed the importance of improving productivity and fostering a competitive domestic economy through mid-to-long-term industrial development strategies.
“In order to energize our economies, we must work constantly to enhance the investment climate and listen closely to the concerns of foreign investors,” he said, framing economic reform as a crucial tool for attracting foreign direct investment (FDI).
Progress Under the IMF Framework
Applauding Sri Lanka’s recent economic achievements, including 3% real GDP growth in 2024 and $6.5 billion in foreign reserves, Isomata noted the successful completion of a debt restructuring agreement as a milestone in the country’s recovery under the IMF framework.
“Japan, along with France and India, played a lead role in finalizing this agreement. Sri Lanka is now firmly on the path to recovery, and Japan remains committed to supporting its economic reform journey,” the Ambassador stated. He also pointed to initiatives such as the Technical Intern Training Program (TITP) and the Specified Skilled Worker (SSW) scheme, which offer Sri Lankan youth the chance to gain long-term work experience in Japan—an investment in human capital that complements broader economic development.
Expo 2025: A Global Platform for Sri Lanka
Expo 2025 Commissioner General Sampath Nissanka, also addressing the gathering, spoke about the upcoming Expo in Osaka as a vital platform for showcasing Sri Lanka’s reform-driven vision and economic potential. The six-month event, which is expected to attract 28 million visitors from around the world, is themed “Designing Future Society for Our Lives.”
“Sri Lanka has a golden opportunity to present its culture, industry, and economic reform efforts on a global stage,” said Nissanka. The Sri Lankan Pavilion, located in the East section of Yumeshima Island, will feature a tea bar, tourism info counters, meeting spaces, and areas for showcasing heritage and business potential.
He called on Sri Lankan industry leaders to actively contribute, adding, “Your involvement is critical in bringing the story of our transformation and economic reforms to an international audience.”
As Sri Lanka moves through a delicate but promising phase of recovery, Japan’s message is clear: real and sustained economic reforms are not only necessary but are the foundation for deeper international cooperation, greater investment, and long-term growth.