Japan still favours Lanka

Despite being made to feel embarrassed and confused by Sri Lanka’s inconsistent policy decisions in the recent past, the Japanese government is still grateful to a nation that pulled them out of their crisis moment. But Japanese investors in the country may have concerns of Sri Lanka’s future and its fragile macroeconomy.

Visiting Japan International Cooperation Agency ( JICA) South Asia Department Director General Takema Sakamoto during an interview with the Business Times on Thursday at the JICA office in Colombo said that in the change in policy of the Sri Lankan government relating to their involvement in the East Container Terminal ( ECT) and the Light Rail Transit ( LRT) projects “we were made so embarrassed and confused. And after dialogue with the government we understood.”

Japan was embarrassed due to a break in communication between the two countries at that juncture when the Sri Lankan government took those decisions; he said adding that if continued changes in policies are carried out

then c o u n t e r measure s would be adopted.

He noted that however, sub

sequently the “higher dignitaries” in the Sri Lankan government had apologised to

Japan. “We can understand but we need more mutual understanding,” he said adding, “I believe they will not repeat it.”

Mr. Sakamoto also recalled the close ties that was strengthened fol l owing the San Francisco Treaty of 1951 where Sri Lanka had insisted that Japan be a free state and not be subject to war reparations as stated by the former Finance Minister J. R. Jayawardena. “Sri Lanka was a friend indeed,” he noted. Sri Lanka and Japan will be marking 70 years of diplomatic ties next year.

He also pointed out that the Japanese private sector investors in Sri Lanka “may have concerns of the future of Sri Lanka due to the change in policy and fragile macroeconomy.”

The Japanese investors “may have been concerned” about the downgrading of the presence of JICA in Sri Lanka due to these events; Mr. Sakamoto noted adding that these companies too would have been embarrassed.

However, he pointed out that during this visit he was able to encourage the Japanese private sector as a friend and JICA is considering mitigating the risks for business in Sri Lanka.

“I believe this trip is creating much more robust partners between both countries,” Mr. Sakamoto said.

The current administration is showing new policies, he said and they understand Sri Lanka’s present difficulties as the country is going through a “tough period” but Japan would like to be a friend.

“We are a big creditor and have an influence over the market,” he said adding that Sri Lanka needs more investments, for which JICA can do more.

The visiting Japanese official said that JICA’s relevance is seen in their assistance to the government like in the construction of the New Kelani Bridge for which JICA provided a soft loan at an interest of 0.1 per cent and 0.01 per cent with a repayment period of 40 years and a grace period of 10 years.

“If you go to the market the interest rate is at about 7-8 per cent,” he noted.

JICA has engaged the expertise of three Japanese companies to transfer technical knowhow for the construction of this unique project carried out by the Road Development Authority (RDA) a first in Sri Lanka using the advanced technology of a steel box girder type bridge. He called this project a “shining example” where no piers are constructed in the river.

Moreover, 320 families displaced as a result of this project were provided with improved permanent housing as a result of this re-location.

During discussions with President and Prime Minister, Mr.

Sakamoto had been convinced of the need for JICA’s continued involvement in Sri Lanka for which the government had also requested assistance for agriculture and climate change.

In terms of climate change Japan has declared that they will be conducting another technical cooperation for adaptation to prevent natural disasters like flood control and landslides. In this respect, Sri Lanka might be one of the countries that would be engaged.

However, this would depend on real needs on the ground; capability of absorption; preparedness; and the capability of employing sufficient personnel on the ground and moreover policy coherence is very important, Mr. Sakamoto said.

JICA is engaged in the health sector development of four hospitals and assistance in combatting the COVID-19 pandemic; rural road development; human security; education and airport development. JICA has also drawn up the Kandy Master Plan.

The visiting delegate has been impressed by the repeated praise for JICA at the opening of the Waste Water Management plant in Kandy and at the invitation of the opening of a netball ground in Colombo.

Mr. Sakamoto had given priority to Sri Lanka during this his first official visit since the pandemic while being in charge of eight countries namely India, Bangladesh, Pakistan, Maldives, Nepal, Bhutan, Afghanistan and Sri Lanka.