Japan-backed trilateral corridor to drive Sri Lanka’s growth
Sri Lanka is actively pursuing a transformation into a strategic export-oriented economic corridor designed to deeply integrate the country into South Asian and regional markets, with significant collaboration from Japan.
This initiative is centred on leveraging Sri Lanka’s geographical proximity to India to foster a manufacturing hub, particularly for components that feed into the larger Indian market, Finance Ministry sources confirmed.
A memorandum of understanding (MoU) with Japan on economic policy dialogue is to be signed shortly, to implement the programme with the objective of promoting comprehensive relations between Sri Lanka and Japan, a senior official of the ministry said.
According to the MOU measures will be taken to promote and strengthen trade, investments and economic development with the assistance of Japan.
The Trilateral Corridor Concept (Japan-Sri Lanka-India) proposal pushed by Japan envisions a “strategic pathway” for Sri Lanka, creating a seamless flow of technology and investment for export-oriented businesses, he said.
This includes Japanese enterprises producing products in Sri Lanka, which will be exported to India and beyond.
He said discussions have been ongoing between the two countries to make Sri Lanka an export-oriented economic corridor of strategic importance and integrate it with the South Asian market.
The initiative targets components such as electrical and electronic components, mineral resources, and agricultural products.
The Cabinet of ministers has approved an Economic Policy Dialogue with Japan on Tuesday to boost these economic interactions.
