Thursday, 19 February 2015 00:47
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Japan has given the green light for the first-ever prospective trade agreement coveted by Sri Lanka, inspired by the new resurgence under the leadership of President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe. “We’d like to particularly stress the Memorandum of Cooperation on the Vitalisation of Intergovernmental Economic Policy Dialogue (MoU-VIGEPD). In my discussions with Prime Minister Ranil Wickremesinghe on this, he agreed to proceed with VIGEPD. I am calling Tokyo to verify when we can start the VIGEPD dialogue with Sri Lanka,” Japan’s Ambassador Nobuhito Hobo has told Industry and Commerce Minister Rishad Baithudeen .
“I see new dynamism in Sri Lanka now, in terms of changing economy and particularly in new reconciliation prospects” said Hobo, and added: “With the new Government of Sri Lanka we would like to continue enriching bilateral relations based on the foundation built on the past six decades. We’d like to particularly stress on the agreed points when Japanese Prime Minister Shinzo Abe paid his official visit to Sri Lanka in September last year, chief amongst which is the VIGEPD MoU. This is an incremental policy effort. Not only policymakers, I also wish to enlist Lankan line ministries on economy at Government level, including the Ministry of Industry and Commerce, which is the signatory.”
“I am pleased to inform we are in receipt of the Communique and we have suggested a two-day visit to Tokyo from our side,” said Bathiudeen, responding to Hobo, and added: “This is a great development for our international trade and for the export growth vision of the President Maithripala Sirisena as well as our Prime Minister Ranil Wickremesinghe. My Ministry officials, the Department of Commerce and I are ready to extend our fullest assistance on implementing the VIGEPD. I also thank the people of Japan for the aid given to Sri Lanka’s development.”
Both Bathiudeen and Hobo also discussed other forms of bilateral cooperation during the meeting.
Commerce Department Director General R.D.S. Kumararatne, EDB Chairman Bandula Egodage, Deputy Ambassador of Japan to Sri Lanka Asako Okai and Resident Representative of JETRO Colombo Asako Okai were also associated at the meeting.
Sri Lanka’s bilateral trade with the world’s third largest economy is also now closing in on the $ 900 million mark.
On 7 September 2014, during the visit of Japanese Prime Minister Shinzo Abe to Sri Lanka, the VIGEPD MoU between the Ministry of Industry and Commerce and the Ministry of External Affairs of Sri Lanka and the Ministry of Economy, Trade and Industry and the Ministry of Foreign Affairs of Japan was signed in Colombo. The Department of Commerce of Sri Lanka believes that VIGEPD may gradually and incrementally progress towards Free Trade Agreement or Economic Partnership Agreement negotiations.
Abe was the first Japanese Prime Minister to visit Sri Lanka in 24 years, the first Japanese Prime Minister to visit Colombo being Kishi Shinsuke (1957).
Japan, the world’s third largest economy, is the ninth largest destination for Lankan exports and is the sixth largest product supplier to Sri Lanka. Japan’s total trade with Sri Lanka increased by 16% in 2013 (from 2012) to $ 894.15 m and in January-June 2014 alone registered $ 477.87 m. Tea, apparel and seafood/fish are Sri Lanka’s top three exports to Japan while 59% of imports from Japan are automotives.
Japan has also been playing a leading role in the socio-economic development of Sri Lanka in the past six decades since it became a member of the Colombo Plan in 1954. In 2013, Japan came forward to extend aid to Sri Lanka exceeding $335 m.
