Japanese Investments in Sri Lanka

The Embassy of the Democratic Socialist Republic of Sri Lanka

FDI from Japan to Sri Lanka dates back to the 1970s.The first FDI came in 1972, with the establishment of a joint venture between Noritake of Japan and the Ceylon Ceramics Corporation. Since then, Japanese investments have contributed immeasurably to the country’s industrial development, particularly in the electronics, ceramics, engineering and metal based sectors.

Since 1996, a number of large Japanese multinational conglomerates including NTT, Mitsui Group, Kawasho Corporation, and YKK have committed substantial investments in large infrastructure and manufacturing projects. At the same time, existing Japanese enterprises –in ceramics, Noritake Lanka Porcelain, Dankotuwa Porcelain (International Ceramics Corporation of Japan), and Dainichi Creations; in electronics, FDK Lanka Ltd (Fuji Electro Chemical) have expanded scale of operations in Sri Lanka with infusion of new FDI.

Foreign Direct Investment from Japan
(Projects approved under Sec.16 & 17 of the BOI Law)

Year

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016 (Jan-Sep)

FDI $mn

4.09

38.61

48.77

16.72

19.35

13.52

7.13

25.8

37.61

14.91

8.4

9.71

Source : Board of Investment

At present, there are about 60 enterprises with Japanese investment, operating in Sri Lanka under the BOI Law with a cumulative investment of US$ 350 million, providing more than 12,000 employment opportunities. In addition, there are a number of small-scale enterprises with Japanese investments operating under the normal laws of the country that are engaged in restaurants, apparel, tourism & travel, and export trading.