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OPINION AUGUST 23, 2024 | The Indian Eye 12

such as aviation, water sanitation,
healthcare, capacity building, agri-
culture, etc. According to reports,
“Japan’s loan portfolio in Sri Lanka
is estimated at $2.3 billion with an-
other $1.1 billion committed for the
ongoing projects”. The OCC deal,
therefore, has opened up the oppor-
tunity for both countries to utilize
the committed funds for stalled in-
frastructure projects.
Japan’s decision to resume the
suspended projects, including the
development of Bandaranaike In-
ternational Airport’s (BIA) $383
million project, is an important push
for bilateral relations that hit a low
during the Presidentship of Gotaba-
ya Rajapaksa.

During his tenure, Sri Lanka
unilaterally cancelled a Ja-

pan International Cooperation
Agency (JICA)-funded $1.5 The economic crisis has pushed Sri Lanka to go beyond the traditional trade partners such as the US and the EU and look for trade and invest-
billion Light Rail Transit (LRT) ment opportunities, particularly in the Asian region (South, East and West) (File photo)
project for Colombo, citing

high costs. crisis and in promoting economic re- infrastructure as a prerequisite to US and the EU and look for trade
forms”. The visit of Minister of For- achieve Sri Lanka’s vision to position and investment opportunities, par-
eign Affairs of Sri Lanka, M.U.M. Ali itself as a trade and maritime hub of ticularly in the Asian region (South,
The Sri Lankan Government
also cancelled the $500 million tri- Sabry, to Japan in July 2024 focused the Indian Ocean region”. East and West). This is evident from
on debt restructuring efforts. Japan’s
the recent Free Trade Agreement
Japan, at present, is keen on
partite deal to develop the Colombo side stressed the need for a more engaging with Sri Lanka within the signed with Thailand in February
Port’s Eastern Container Terminal “stable relationship between the Sri framework of Free and Open In- 2024, which is expected to boost busi-
(ECT) together with India. Despite Lankan government and the North- do-Pacific (FOIP) to ensure rules- ness opportunities and two-way trade
a few setbacks, Sri Lanka kept its of- ern and Eastern provinces, to further based international order, economic and investment.
ficial engagement with Japan active, enhance the investment environment prosperity, peace and stability. To Therefore, by active economic
and the economic crisis also pro- for overseas companies including Jap- realize the objective, Japan is sup- and political engagement with Japan
pelled Sri Lanka to reach out to its anese businesses in the provinces”. porting projects in port building for and with the resumption of stalled
traditional donor. After Ranil Wick- improving connectivity (ex. devel- projects, Sri Lanka is hoping to real-
remesinghe took over the reins of the Free and Open Indo-Pacific: opment of Colombo port as well ize its vision of emerging as a global
Presidency following the economic as Trincomalee port (equipment hub in the region. In addition to the
crisis in July 2022, he tried to nor- A Priority provision)), mine clearing, mari- infrastructure projects, renewable
malize relations with Japan. He visit- nother dimension to Japan’s time security and safety initiatives, energy, aviation and IT development
ed Japan twice, in the month of Sep- engagement with Sri Lanka counter terrorism and disaster risk are other areas where Sri Lanka is
tember (26–28th) 2022 as well as in Ais the strengthening of mar- reduction. Cooperation in maritime hoping to get Japan’s cooperation
May (24–27th) 2023. During his visit itime cooperation between the two security is also an important com- and investment. This will also enable
to Japan in May 2023, he expressed nations given the strategic location of ponent of cooperation, and Sri Lan- Sri Lanka to diversify its Foreign Di-
his regret on the cancellation of LRT Sri Lanka in the Indian Ocean con- ka has been facilitating port calls by rect Investment (FDI) sources and
to the Prime Minister of Japan, Fu- necting Asia and Africa. The Joint the Japan Maritime Self-Defense avoid overdependence on one donor,
mio Kishida. He also stressed that Statement between Sri Lanka and Force (JMSDF) for many years. The which can lead to a debt burden in
“bilateral large-scale projects cannot Japan in 2014, during the visit of the JMSDF destroyer JS Samidare (DD- the future. In this context, the recent
be halted or cancelled without the then Prime Minister of Japan Shinzo 106) made a visit to the port of Co- announcement by Japan to resume
agreement of both parties, and em- Abe to Colombo, elevated the bilat- lombo in June 2024. By increasing the stalled projects in Sri Lanka and
phasized on the need for legislation eral relations into “a new partner- maritime engagement with Sri Lan- high-level engagement between Sri
in the Parliament that can look at the ship between maritime countries to ka, Japan is hoping to counter the in- Lanka and Japan assumes impor-
future bilateral agreements”. strengthen cooperation in the stabil- fluence of China in the region. tance and is welcome.
This year, two important
Sri Lanka, on the other hand,
high-level exchanges between Japan ity and prosperity of the Pacific and sees Japan as a bridge between the Dr. Samatha Mallempati, is a Research
Indian Ocean regions”.
and Sri Lanka took place to discuss To further the maritime partner- “Global South” and the “Global Fellow, at the Indian Council of World
priority areas of bilateral cooperation. ship, both countries have also estab- North”. It also supported Japan’s Affairs, New Delhi. Views expressed are
The Japanese Foreign Minister Kami- lished a Sri Lanka-Japan Dialogue bid for permanent membership in personal.
kawa Yoko, during his visit to Sri Lan- on Maritime Security and Oceanic the United Nations Security Coun- This article first appeared in the View-
ka on 5th May 2024, appreciated the Issues. The 4th Dialogue was held in cil (UNSC). The economic crisis has point section of the website (www.icwa.
efforts taken by “the Sri Lankan Gov- 2020 and focused on rules-based mar- pushed Sri Lanka to go beyond the in) of Indian Council of World Affairs,
ernment to overcome the economic
itime order and the need for quality traditional trade partners such as the New Delhi, on August 13, 2024

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