Resetting Sri Lanka–Japan relations through President Disanayake’s visit

The official visit of President Anura Kumara Disanayake to Japan carries immense symbolic and practical importance. At a time when Sri Lanka is striving to stabilise its economy, rebuild global confidence, and re-establish constructive external partnerships, this visit has the potential to reset one of the country’s most significant bilateral relationships. 

For decades, Japan has stood as Sri Lanka’s most trusted development partner. From hospitals and roads to irrigation schemes and airports, Japanese assistance has touched millions of lives across the island, leaving behind infrastructure and institutions of enduring value.

What distinguished Japanese development cooperation was not only its scale and scope but also its integrity. Projects funded by Tokyo have long been regarded as models of efficiency and transparency. Unlike many other aid flows, Japanese assistance was rarely tainted by corruption or political manipulation. In fact, when credible allegations arose that Sri Lankan politicians or officials had solicited bribes, Japan’s response was clear and principled rather allowing graft. This refusal to compromise on standards stood in stark contrast to the willingness of some other partners to indulge local elites at the expense of ordinary citizens.

Moreover, Japanese financial assistance has always been extended on exceptionally generous terms. Loans spanning up to 40 years, with long grace periods and minimal interest rates, were designed not to trap Sri Lanka in debt but to ensure that development was sustainable. That recent Governments chose to jeopardise this invaluable partnership for short-term personal or political gain will remain one of the gravest betrayals of the Sri Lankan people. The cancellation of the Japanese-funded Light Rail Transit project in Colombo and the suspension of the second terminal at Bandaranaike International Airport are stark reminders of this reckless disregard for national interest. Japan’s engagement with Sri Lanka, however, is not confined to aid and infrastructure. The relationship is multifaceted and deeply human. Today, more than 63,000 Sri Lankans live and work in Japan, contributing to the Japanese economy while supporting their families back home through remittances. This vibrant diaspora forms a living bridge between the two nations. At the same time, Japanese investment potential in Sri Lanka remains vast, spanning transportation, ports, aviation, energy, and technology. Beyond government-to-government cooperation, private sector partnerships can unleash new avenues of growth, provided that Sri Lanka offers a transparent, predictable, and investor-friendly environment.

Trade, too, offers untapped opportunities. With concessionary tariffs and stronger market access, Sri Lanka could diversify its exports and reduce dependence on a narrow set of goods and partners. For Japan, deeper trade links with Sri Lanka would help secure supply chains and expand its economic presence in the Indian Ocean, a region of rising strategic significance. The complementarities between the two economies are real and should be pursued vigorously.

President Disanayake’s challenge, therefore, is not merely ceremonial. He must convince the Japanese leadership that Sri Lanka is once again a reliable partner, committed to honouring agreements and safeguarding investments. He must demonstrate that the era of whimsical policy reversals and political interference is behind us. While Japan has shown remarkable policy consistency despite changes of Government, Sri Lanka does not have the luxury of delay. In a period of favourable conditions, tangible progress must be made swiftly.