Following Shinzo Abe's visit:

New era in trade relations

Japanese Prime Minister Shinzo Abe wrapped up a successful visit to Sri Lanka last week, marking a new era in the bilateral diplomatic and trade relations between the two maritime nations.

Abe, the first Japanese Prime Minister to visit Sri Lanka in 24 years, signed several agreements for cooperation in various fields during his two-day visit.

The highlight of his visit was participating in the launch of construction work on the new passenger terminal of the Bandaranaike International Airport with the help of a US$ 330 million Japanese development loan. President Mahinda Rajapaksa, who greeted the visiting Japanese Premier at the BIA, was also present.

The new terminal will help increase the annual passenger capacity to more than 11 million and also increase the slots available to airliners, a move that will be in line with the project to attract 2.5 million tourists to Sri Lanka in the next few years.

Another significant development that took place during his visit was Japan’s pledge to develop digital terrestrial television broadcasting in Sri Lanka using the Japanese standard ISDB-T (Terrestrial Integrated Services Digital Broadcasting ) which is said to offer more advantages than the DVB system which had been proposed earlier. Japan will provide US$ 130 million for this purpose.

Sri Lanka and Japan also signalled “a new partnership between the two maritime countries”. With this aim in mind, Prime Minister Abe participated in a Sri Lanka-Japan Business Forum where he delivered the keynote address that focused on the potential for more Japanese investments in Sri Lanka and increased trade between the two countries.

The potential for bilateral trade is vast, given that Japan is only Sri Lanka’s 10th largest export destination.

Total trade between the two countries is around $1 billion. Japanese exports to Sri Lanka has picked up with the high demand for Japanese made hybrid and electric vehicles in Sri Lanka.

The Sri Lanka-Japan Business Forum was organised by the Sri Lanka-Japan Business Co-operation Committee of the Ceylon Chamber of Commerce with Japanese business media leader Nikkei Inc and JETRO.

“I have heard your saying Japana Hapana and I have brought with me many top Japanese CEOs who have the skills, technology and more importantly the passion to see Sri Lanka forward."

"I hope you make use of this opportunity,” the Premier said.

He said Japan, a steadfast friend of Sri Lanka, would seek ways to enhance its trade and investment relationship with the Indian Ocean island nation.

“Sri Lanka is an emerging market in the region and to promote hub strategies is fitting due to Sri Lanka’s location.

Therefore, the sophisticated technology and skills that Japan possesses will be passed on to Sri Lanka to reach the target,” Prime Minister Abe told the gathering.

The CEOs of most major Japanese companies including Hitachi, Sumitomo, Mitsubishi, Tomo Digi and Onomichi Dockyard made presentations.

Hitachi Ltd Chairman and CEO Hiroaki Nakanishi outlined the proposed 30 km Malabe-Colombo Hitachi Monorail System designed to minimise traffic congestion and provide punctual transport. Tomo Digi Corporation President Hidemichi Shirane said the fundamentals of the proposed ISDB-T system, can also deliver content to mobile devices. Onomichi Dockyard Co. Ltd (which owns 51 percent of Colombo Dockyard PLC) President Takashi Nakabe expressed his commitment to further invest in Sri Lanka.

Thermal power giant Mitsubishi Hitachi Power Systems Ltd President Koji Tanaka pledged to work with Sri Lanka to explore clean energy options.

The other CEOs also made presentations on existing and proposed projects in Sri Lanka.

Representatives of all major companies in Sri Lanka were present at the Business Forum.

Premier Abe also pledged support to upgrade the island's roads.