Japanese concepts improved manufacturing process

"Japan continues to be a top partner as our bilateral trade with the Land of the Rising Sun topped $ 1.2 B in 2011. Knowledge transfer of Japanese manufacturing practices to Sri Lanka helped improve quality of manufacturing here. Japan has always been a key trading partner as well as a generous donor nation for Sri Lanka.

"We remember the Japanese assistance extended to Sri Lanka with warm gratitude, among them were granting of the first islandwide TV network Rupavahini. Concepts such as the Japanese '5 S' have made a huge impact on the improvement of our product quality," said Minister of Industry and Commerce Rishad Bathiudeen. Minister Bathiudeen addressing the 'JASTECA Exhibition and Trade Fair 2012' organised by the Japan-Sri Lanka Technical and Cultural Association to commemorate 60 years of Japan-Sri Lanka diplomatic relations.

More than 3,000 Sri Lankans have received AOTS training on technical and managerial aspects in Japan and are now steadily contributing to industry sectors in Sri Lanka.

"Japan and Sri Lanka have had close, cordial and warm bilateral relations not only in the trade and economic fields but also in several other areas such as culture and education.

The bilateral discourse also goes back a long time. Successive Governments of Japan and Sri Lanka have further strengthened the friendly relations to even higher levels that we are witnessing today.

The total bilateral trade turnover between the two nations has grown to about $1,250m by end 2011. Japan has always been a key trading partner as well as a generous donor.

"We also remember the Japanese assistance extended to Sri Lanka with warm gratitude, among them were granting the strengthening of the Sri Lanka Telecom, the grant f or Sri Jayewardenepura General Hospital, aid to develop various road networks, enhancing education and academic scholarships. "

"Such aid has been solid pillars of generous Japanese assistance to Sri Lanka. I am aware that many of the participating companies in the JASTECA Exhibition and Trade Fair 2012 are currently employing Japanese Good Manufacturing Practices (GMP)."

Also such concepts as the Japanese '5 S' have made a huge impact on the improvement of quality, productivity and also human resources in Sri Lanka's Industrial and services sectors", Minister Bathiudeen said.

The total bilateral trade, which stood at $ 493m in 2002, has increased to $1249.03m in 2011.

The balance of trade with Japan is unfavourable to Sri Lanka, due to imports of high value motor vehicles.

However, total trade dropped significantly in 2009 due to global recession. But it has increased in 2011.

Tea has been the main item of exports from Sri Lanka to Japan,which accounts for 29.8 percent of the total value of Sri Lanka's exports to Japan in 2010.

Tea export has increased from $19m in 2002 to $50m in 2010. Other items of exports to Japan are shrimps and prawns, apparel , precious and semi-precious stones, natural rubber, machine parts and accessories, brooms, brushes, tyres, vegetables, fruits and nuts. Import of vehicles from Japan accounted for more than 50 percent of the value of total imports from Japan in 2010."

He said, Other import items from Japan include electrical machinery, self-propelled bulldozers, iron or steel, parts and accessories of the vehicles. In 2009, the value of total imports from Japan to Sri Lanka recorded as the lowest value since 2002. But it has increased in 2011 due to the duty reduction. Since 1996, a number of 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 their investment in Sri Lanka.

There are already 60 Japanese enterprises operating in Sri Lanka under the BOI with an investment of $ 350m providing employment for more than 12,000 people.

Prospects for a Free Trade Agreement (FTA) between Sri Lanka and Japan have also come under discussion at bilateral level.

In the first week of June 2011, Japanese Ambassador, Kunio Takahashi, during a meeting with Minister Bathiudeen in Colombo, acknowledged the idea that an FTA with Japan will help Sri Lanka contribute to Lanka-Japan bilateral trade dialogue.