JETRO Vice President sees Sri Lanka as emerging export hub for Japanese firms

JETRO Executive Vice President Okumura Akiko 

Pic by Lasantha Kumara 

• Plans deeper trade and investment push from Colombo to India, Middle East and Africa
• Cites political stability, ongoing economic recovery as critical confidence drivers for Japanese investors
• Notes Japanese business delegation from diverse sectors scheduled to visit Sri Lanka next month

By Charumini de Silva

The Japan External Trade Organisation (JETRO) Executive Vice President Okumura Akiko yesterday said it is looking to reset and deepen economic ties with Sri Lanka, positioning the island as a potential export hub linking India, the Middle East and Africa.

“Japan and Sri Lanka are undergoing structural economic shifts, creating an opportunity to redefine bilateral cooperation over the next three to five years,” she told the Daily FT in an exclusive interview, during her first official visit to Colombo as a senior JETRO official.

Okumura noted that since President Anura Kumara Dissanayake’s visit to Japan last year, discussions have intensified on building what she described as “a new relationship” aligned with evolving global realities.

Following the ongoing economic policy dialogue between the two Governments, she said JETRO and Sri Lankan counterparts agreed to institutionalise annual high-level meetings, supplemented by more frequent online engagements to address investor concerns. “The important thing is implementation,” Okumura stressed.

With renewed Government-level dialogue, improving macroeconomic conditions and strategic port infrastructure, she said JETRO sees momentum building. “Sri Lanka can be an export hub. We see real possibilities,” she emphasised.

Okumura said a key pillar of JETRO’s strategy is Sri Lanka’s geographic positioning. Sri Lanka’s natural deep-sea ports and its proximity to India, one of the world’s fastest-growing economies is a great advantage. 

“With natural deep-sea ports with capacity and growing cargo movement between India and other regions, Sri Lanka has the potential to become a great export hub for Japan. From here, businesses can expand not only to India, but also to the Middle East and Africa,” she added.

She said JETRO operates five offices in India, including in Chennai, enabling coordination between Japanese businesses in southern India and Sri Lanka. Okumura suggested that triangular trade between Japan, India and Sri Lanka could expand significantly in the coming years.

While automobiles remain a major Japanese export to Sri Lanka, Okumura indicated that interest is broadening. A Japanese business delegation scheduled to visit Sri Lanka next month will represent diverse sectors including; environmental equipment, agriculture and food processing, machinery and industrial manufacturing, trading and logistics and electronics.

“Some companies are exploring factory set-ups, while others are assessing export-oriented production models,” she confirmed.

Although no formal inquiries have yet been made regarding automobile assembly plants in Sri Lanka, Okumura described the Sri Lankan market as “very important” for Japanese brands. “Japanese companies are paying more attention to this market,” she said.

Amid shifting geopolitical dynamics, Okumura said Japan is increasingly focused on diversifying supply chains, particularly in securing critical minerals and rare earth-related materials. 

She noted that JETRO researchers have identified high-purity mineral resources in Sri Lanka that could be of strategic interest to Japanese industries. “We are looking to connect Sri Lanka’s valuable resources with Japanese companies,” she said, adding that such linkages could strengthen supply chain diversification efforts.

“As Japan seeks diversified supply chains and regional integration across the Indo-Pacific, Sri Lanka may once again find itself playing a pivotal role in bilateral economic cooperation—this time as a gateway linking South Asia to wider global markets,” she added.

JETRO conducts annual surveys among Japanese companies operating in Sri Lanka, tracking expansion plans and business sentiment. According to Okumura, more than half of Japanese firms in Sri Lanka have expressed interest in expanding operations, a notable improvement compared to the pandemic period.

She cited political stability and ongoing economic recovery as critical confidence drivers.

“We have noticed that after the economic crisis, the Government of Sri Lanka is keen to maintain consistent policies. Import and export procedures have improved and become faster.”

Beyond trade and investment, Okumura identified human resource exchange as an immediate area of opportunity. With Japan facing rapid ageing and labour shortages, demand for skilled foreign workers is rising. She noted that the number of Sri Lankans working in Japan has increased significantly—in fact surpassing Indian numbers in certain categories.

“There is strong interest in Japan among young Sri Lankans,” she said, particularly in language training and technical skills development. 

Okumura said Sri Lankans who work in Japan and return home bring back valuable skills and technological exposure, strengthening bilateral economic links in the long term. “This people-to-people connection supports trade and investment naturally,” she said.

JETRO’s Colombo office established in 1964, she said is among its oldest in Asia, underscoring the longstanding importance of Sri Lanka in Japan’s regional engagement.

Despite its relatively small team, Okumura said the office plays a key role in publishing regular economic reports, organising business forums and facilitating delegations.