Japan as a Strong Partner for Sri Lanka’s Development
Overview of economic relations between Japan and Sri Lanka
Japan has been a strong leading partner for Sri Lanka in advancing its overall socioeconomic development, improving quality of life for the people, and enhancing national reconciliation. The partnership dates back to 1954 when Japan became a member of the Colombo Plan, an international organization based in Colombo, and initiated Japan’ s Official Development Assistance (ODA) to developing countries including Sri Lanka.
Japan’s assistance has been extended to all sectors and areas in Sri Lanka, considering that the benefits reach all including lagging regions and vulnerable people.Japan has provided a total of 1,376 billion Japanese Yen ( Approximately Rs. 1,628billion) in the form ofconcessional loans, grants and technical cooperation since 1965. While loan aidmainly focuses on strengthening social and economic infrastructure, grant aid is aimed at enhancing social welfare of the people, and technical cooperationis used for enhancing institutional capacity and human resources, utilizing Japan’s advanced technology, knowledge, and experiences.
Along with the ODA, trade and investment is an important area on which Japan and Sri Lanka put even more focus than in previous years. Presently a significant number of Japanese companies are doing business in Sri Lanka, making a substantial contribution to Sri Lanka’s economy through creating employment, generating exports, transferring Japanese technology and introducing efficient work ethics to Sri Lanka. The Japanese Chamber of Commerce and Industry in Sri Lanka and the Japan External Trade Organization ( JETRO) actively promote trade and investment between Japan and Sri Lanka.
This year’s highlight
This year’s achievements are highlighted in the rehabilitation and reconstruction of major 18 bridges in the Northern and the Southern Provinces, the refurbishment of State Pharmaceutical Manufacturing Corporation, and provision of two patrol vessels for the Sri Lankan Coast Guardamong others. Japan also actively engages in gender equality and empowerment of women and girls. The G7 Foreign Ministers agreed upon Women, Peace and Security Partnerships Initiative in April. Japan andSri Lanka will work together to advance this agenda. In addition, Japan is supporting a variety of projects at the grassroots level including mine clearance in the conflict-affected areas of the Northern Province. Japan will continue to provide fullest support to the Government of Sri Lanka aiming to achieve a minefree country by 2020.
In the business sector, a largescale business delegation headed by the Chairman of the Japan Chamber of Commerce and Industry visited Sri Lanka in January. The membership of the Japanese Chamber of Commerce and Industry in Sri Lanka has reached a record high of 81 since its foundation in 1987 with 34. A variety of Japanese companies have opened new businesses here, including a solar panel manufacturing factory in Katunayake and a luxury hotel in Galle. JETRO held several business seminars in Japan with participation of many Japanese companies, including on the occasion of His Excellency the President’s visit to Japan in March.
Japan’sCountry Development Cooperation Policyfor Sri Lanka
The Government of Japan’s assistance is based on its Country Development Cooperation Policyfor Sri Lanka, whichaligns with Sri Lanka’s policies and long- term development needs. This Policy, wh i ch was updat e d this year,functions as a guideline for formulating Japan’s ODA projects in Sri Lanka. Based on the principle of “promoting high quality, inclusive growth”,the Government of Japan gives priority to the following three areas:“promotingquality growth,” “development cooperation for inclusive growth,” and “mitigating vulnerability.”
(1) “Promoting quality growth”
The Government of Japan has been actively implementing infrastructure development in transportation, energy, and water sectors in Sri Lanka. Japan is working to explore optimum methods of resolving traffic congestion and transport difficulties in the megapolis area, and to increase transportation capacity, improve safety and comfort of public transportation services, reduce traffic pollution such as air pollution, and to revitalize socio economic activities and improve urban environment. In road sector, construction work of the “New Bridge Construction Project over the K el a ni River” starts recently for easing the inflow of traffic entering and leaving Colombo city.
As for port/ airport sector, Japan launched projects such as the Phase2(II) of the Bandaranaike International Airport Development in October 2015.
In order to respond to the increasing energy demand, Japan assists to improve generation capacity and energy efficiency, too. HabaranaVeyangoda Transmission Line Project, Greater Colombo Transmission and Distribution Loss Reduction Project, and National Transmission and Distribution Network Development and Efficiency Improvement Project are some examples which will strengthen the existing power system by low–loss transmission and distribution lines. Furthermore, the completed Electricity Sector Master Plan until 2040 will help Sri Lanka identify future investment projects to achieve stable, economical and environmentally friendly electricity supply in Sri Lanka.
In water sector, Japan assists inexpanding water supply network and sewerage facility, and improving solid waste management capacity. Project for Rehabilitation of Killinochchi Water Supply scheme, Kandy City Wastewater Management Project, Anuradhapura North Water Supply Project and Kalu Ganga Water Supply Expansion Project are some examples.
(2) “Development cooperation for inclusive growth”
Japan is committedto rebuilding conflict- affected areas, especially in the north and the east of the country. Japan’s on- going assistance in these regions includes micro- finance programs to promote income generation, construction of socio-economic infrastructure such as potable water supply system, irrigation facilities and rural roads, as well as capacity building for field level officers in charge of rural/community development.
Rehabilitation of schools in Mannar through UN- HABITAT has just completed, which greatly contributes to the improvement of the learning environment in the area. Establishment of research and training complex at the faculty of agriculture of the University of Jaffna is expected to contribute to improving productivity and profitability of the local economy, particularly through dry zone agriculture technologies.
Japan is recognized as a leading donor in supporting demining operations in the conflict affected areas which is a prerequisite for the resettlement of people. Since 2002, Japan has provided US$ 33million (approximately Rs. 5 billion) for demining activities in the Northern and the Eastern Provinces under its “Grant Assistance for Grassroots Human Security Projects ( GGP)” administered by the Embassy of Japan.
GGP scheme provides assistance not only for demining projects but also for a variety of grassroots level projects mostly through local NGOs. Up to the end of 2017, over US$ 43 million was disbursed for over 277GGP projects to serve the needs of the local communitiesin various parts of the country, including in the conflict-affected areas.
Japanese NGOs are also active in facilitating local development initiatives in several parts of the country. From 2009 to 2017, Japanese NGO Grant funds were provided for 30 projects implemented by Peace Winds Japan, Asia Pacific Alliance for Disaster Management and many other NGOs.
(3) “Mitigating Vulnerability”
Sri Lanka is vulnerable to natural disasters such as heavy rain. In order to address climate change and disaster, Japan takes measures to improve both structural and non-structuraldisaster risk management.Cooperation projects for Sri Lanka attach particular importance to enhancement of governance, risk reduction on flood and sediment disaster and establishment of early warning system including among local communities. Japan is implementing countermeasures against slopes of major national roads with high sediment- related disasters risks in sediment-related disaster hazard areas.
In addition, through the technical cooperation project, Japan has been actively engaged in enhancing the capacity of key disaster management agencies such as Disaster Management Centre, Department of Meteorology and National Building Research Organization. Japan also helps improve Sri Lanka’s capacity for real time rainfall observation by providing meteoro- logical observation radar towers and central processing system / display system throughout Sri Lanka. Currently, Japan dispatches experts on landslide mitigation and weather observation.
In the health sector, in response to the emerging challenges such as non-communicable diseases (NCD), Japan focuses on strengthening preventive healthcare that includes capacity enhancement of health administration, restoration of sound healthcare budget, improvement of facility management and human resource development. Japan also supports the early detection and quick treatment system for NCD.
People-Centered Development
One of the most remarkable features of Japan’s assistance is people-centered development.Capacity building of the people in Sri Lanka through trainings or technical cooperationis a key for achieving sustainable development goals. As of Fiscal Year 2017, over 13,200 Sri Lankans were provided trainings, while 1,130 Japan Overseas Cooperation Volunteers ( JOCV) and 2,883 Japanese experts were dispatched to Sri Lanka cumulatively. JICA volunteers presently serves for various sectors such as solid waste management and environmental education, rural development, social workin all parts of the country including the North and East. These initiatives enhance not only Sri Lanka’s sustainable development but also friendship between the people of both countries.
Examples include the Japanese Grant Aid for Human Resources Development Scholarship ( JDS) Program which offers public officers opportunities to study at post-graduate courses in Japan in order to develop their expertise. Under the first phase ( 2009 – 2015) of the JDS program, 60 officials have completed their Masters degrees in Japan, while Phase II (2013 – 2019) will provide such opportunities for another 60 young public officials. In addition, under the JDS programme, Japan started to provide 2 officials every year with the opportunity to study at doctorial courses in Japan.
Another initiative is the “Innovative Asia.” Japan took this measure to mobilize diverse governmental resources, in order that competent human resources of Asian developing/ emerging countries including Sri Lanka play more active roles in contributing to industrial growth of their home countries through having deeper working experience at best innovative Japanese companies, thereby knowing better how innovation is being promoted in Japan. Cooperating with University of Colombo and University of Peradeniya, in 2018, 1 student was dispatched to Japan. Prime Minister Abe affirmed the importance of capacity building and enhancement of public service delivery organizations for the good governance and the rule of law.
Sri Lanka is vulnerable to natural disasters such as heavy rain. In order to address climate change and disaster, Japan takes measures to improve both structural and nonstructural disaster risk management.Cooperation projects for Sri Lanka attach particular importance to enhancement of governance, risk reduction on flood and sediment disaster and establishment of early warning system including among local communities.Japan is implementing countermeasures against slopes of major national roads with high sediment-related disasters risks in sediment-related disaster hazard areas.