Do something special for trade increase: Takahashi

By Sunimalee Dias

Japan yesterday asserted that Sri Lanka must take initiatives to improve its attractiveness without living under the misconception of a boom in a post war era.

“Sri Lanka needs to do something special to increase trade with Japan,” Japanese Ambassador Kunio Takahashi said yesterday addressing the Key Person’s Forum conducted by the Federation of Chamber sof Commerce and Industry of Sri Lanka (FCCISL).

While there is a need to develop economic relations in trade and tourism between the two countries it should be ascertained as to how this could be done, he said. The ambassador pointed out that it was important not to get carried away by the misconception of the war being over.        

In this respect he explained that most people wonder why Japan is not interested in Sri Lanka in this post war era to engage in more trade.

This, he explained was mainly because there was severe global competition which Sri Lanka had to face up to.

Takahashi observed that while they continue to promote the country to investors in Japan it was not possible to “force” them to come here.

With about 50 Japanese companies in operation at the time when he assumed office in Colombo, all these companies had faced problems pertaining to VAT and the complex tax system.

However, these issues had been resolved through a series of meetings initiated by Takahashi based on his experience in Vietnam.

Sri Lanka should be sensitive to the high quality expected by the Japanese people; the ambassador said adding that towards this end it was imperative to engage in stiff competition with other exporters to Japan.

Further he pointed out that in respect of targeting tourists; Sri Lanka needs to ensure that the country attracts not simply large numbers, but high spenders. Being attractive by providing more authentic Sri Lankan cuisine which is a pre-requisite for Japanese tourists and being more engaged with them is a necessity, the ambassador stressed.

Takahashi noted that the country needs to ensure that it attracts tourists by becoming an ideal shopping destination and not by simply concentrating on cultural and heritage promotion alone.

He spelt out the disappointment experienced by Japanese tourists who had to pay more than US$20 as entrance fee to various tourist attractions.

Commenting on India’s increased attractiveness despite a lack of infrastructure which clearly shows that it is the work environment and the access to cheap but qualified labour that was imperative for an economy’s growth, he said.

While both India and Sri Lanka may have similar problems, the latter was however unable to attract the more important companies, he explained.

Takahashi asserted that while Sri Lanka’s “wait and see” attitude would not help the country to improve, Sri Lanka must focus on becoming more attractive through its own efforts.

Japanese Ambassador Takahashi observed that with Sri Lanka sharing only 0.03% of the total trade carried out by Japan; it was not easy to start negotiations for a Free Trade Agreement with Sri Lanka.

He pointed out that it was necessary initially for the country to increase its volume of trade with Japan in order to consider such proposals.

With Sri Lankan people preferring Japanese goods there could be an increase in the consumption of Japanese products in the country leading to a large trade deficit for Sri Lanka.

Efforts need to be made, more so by the Sri Lankan government to promote the country’s trade and industry to Japanese investors in a bid to ensure they become interested.