Sri Lanka has the potential to undertake electronics and electrical goods manufacturing for Japanese businesses, Japan External Trade Organisation (JETRO) Country Representative Hiroki Oi told The Daily Morning Business yesterday.

“We see a potentially good opportunity in the electronics and electrical goods manufacturing sector in Sri Lanka, as the cost of production is comparatively affordable. As Japanese we see that the working culture in Sri Lanka is also favourable for Japanese business.”

According to the Embassy of Sri Lanka in Japan, in 2024, Japanese investments in Sri Lanka totalled to around $ 350 million, directed into 60 enterprises, and have contributed to job creation and technology transfer.

“We see opportunities in the technological sector in Sri Lanka, in the same way we see opportunities in the Middle East and across South East Asia,” noted Oi, adding that although Sri Lanka’s market size is not big, geographically, Japan sees it as advantageous, as it can be a gateway to exporting to India.”

“At the moment, Japanese companies are focusing on skills-building and Japanese language skills development among Sri Lankan locals, for the purpose of employing Sri Lankans in Japan,” Oi added.

Japanese investment in employment in Sri Lanka had cumulatively created over 12,000 employment opportunities by 2024, Board of Investment (BOI) data reveals.

“At present, there are about 60 enterprises with Japanese investments, operating in Sri Lanka under the BOI law,” the Embassy of Sri Lanka in Japan said in a statement, adding that “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 and travel, and export trading.”