Advantages of low cost production, literate workforce:

Sri Lanka has potential as manufacturing base in SA

Charumini de Silva

Japan-Sri Lanka Business Co-operation Community Chairman, Sumitaka Fujitha, Public Administration and Home Affairs Minister and Deputy Finance Minister, Dr. Sarath Amunugama and Sri Lanka - Japan Business Co-operation Committee President, Daya Weththasinghe at the 15th joint meeting of the Sri Lanka - Japan and Japan-Sri Lanka Business Co-operation Committee. Picture by Sumanachandra Ariyawansa

Japan-Sri Lanka Business Co-operation Community Chairman, Sumitaka Fujitha said Sri Lanka has the potential to be the manufacturing base in the South Asian region as it has the advantages of low cost production, highly competitive and a literate workforce compared to other countries in the region.

He was addressing the 15th joint meeting of the Sri Lanka-Japan and Japan-Sri Lanka Business Co-operation Committee at the Galadari Hotel yesterday. The meeting was organized by the Sri Lanka - Japan Business Co-Operation Committee of the Ceylon Chamber of Commerce and the Japan-Sri Lanka Business Co-operation Committee of the Japan Chamber of Commerce and Industry. The meeting will conclude on Friday.

Sri Lanka also has a vast market in South Asia through the South Asian Association for Regional Co-operation (SAARC) and it has provided much economic potential. As peace has been established the country could look forward to rapid economic growth, he said.

Fujitha said that one of the reasons for the reduction of investments by Japanese entrepreneurs in Sri Lanka was due to the threat posed by the LTTE in the past. When Japanese investors select a country they look for human resource security as their first priority and with the dawn of peace more Foreign Direct Investments (FDIs) will flow into the country.

He said Japan hopes to help Sri Lanka further in post conflict reconstruction and rehabilitation. This meeting will help the two countries to further strengthen economic trade ties.

Public Administration and Home Affairs Minister and Deputy Finance Minister, Dr. Sarath Amunugama said Sri Lanka’s relations with Japan extend over half a century and our diplomatic relationship with the country is strong and cordial.

Japan has assisted Sri Lanka in several sectors and has always helped the country in times of need.

He said there were many attractions for investors to select Sri Lanka for FDIs including the availability of the largest market in South Asia. Sri Lanka is not too far to become the second largest consumer market.

We have been able to sustain an economic growth rate of five percent over the past four years even during the global economic meltdown and hope to achieve an economic growth of six - seven percent this year. With the developing activities we hope to accelerate the whole economic process.

Ambassador of Japan in Sri Lanka, Kunio Takahashi said Sri Lanka is poised for economic expansion and growth has a good potential for foreign investment. The Government of Japan has encouraged entrepreneurs to invest in Sri Lanka, especially in the Eastern province and in some parts of the Northern province. The Government of Japan also encourages Japanese tourists to visit Sri Lanka.

He said Sri Lanka has a stable macro economic state and hope that Sri Lanka would seize this opportunity to grow as an emerging economic power in the South Asian region. Though all these development activities would take some time, it will have a rapid take off and this relationship would benefit Japan and Sri Lanka.

The Ceylon Chamber of Commerce Chairman, Anura Ekanayake said as we celebrate 30 years of business relations, Sri Lanka could emerge as the next economic giant of South Asia. Japan also became an economic superpower having experienced the Hiroshima disaster and worked very hard thereafter to re-build gradually. We in Sri Lanka could learn many lessons from Japan as we too also experienced a similar situation. The future of the economy shows many potential areas and we hope that the business community would take advantage of it.