President Anura Kumara Dissanayake recently met with Japanese Ambassador Akio Isomata and discussed issues of bilateral interest.
The Japanese Ambassador stated that efforts have been made to include Sri Lanka in the recently launched security cooperation assistance program by the Government of Japan.
Furthermore, the current status and progress of digital economic and airport investments were discussed. The Ambassador also reaffirmed Japan’s commitment to supporting Sri Lanka’s digital transformation program, emphasising the Government of Japan’s intention to invest in port and aviation-related projects, as well as digitalisation initiatives in Sri Lanka.
Historical Experience
Sri Lanka’s technological landscape has been shaped by various international influences, but few have been as significant—and controversial—as Japan’s involvement. From the establishment of the Sri Lanka Rupavahini Corporation (SLRC) in the early 1980s to Japan’s continued economic and technological influence, Japan’s role has often been presented as benevolent aid. However, a deeper analysis reveals that Japan’s assistance has frequently served its own strategic and economic interests, contributing to Sri Lanka’s increasing dependency rather than fostering independent growth.
The Birth of Rupavahini: Japan’s Role in Shaping Media Technology
In 1979, under a bilateral agreement, Japan provided financial and technical assistance to establish the SLRC, Sri Lanka’s first national television broadcaster. This initiative introduced cutting-edge Japanese broadcasting technology, including cameras, transmission equipment, and studio infrastructure, positioning Sri Lanka at the forefront of television broadcasting in South Asia at the time. The first transmission of Rupavahini took place on February 15, 1982, marking the beginning of a new era in mass media communication in Sri Lanka.
Japanese engineers trained Sri Lankan technicians, ensuring that local staff could maintain and operate the network. However, this assistance also created a dependency on Japanese technology, limiting Sri Lanka’s ability to explore alternative broadcasting systems that could have been more beneficial for the country’s long-term development.
Curtailment of Alternative Technologies
Japan’s influence in Sri Lanka’s media sector came at a cost. While television technology expanded, other areas of technological development suffered:
- Radio Broadcasting Stagnation – The rapid expansion of television broadcasting led to reduced investment in radio technology, limiting advancements in digital radio and transmission.
- Delayed Telecommunications and IT Growth – While television viewership increased, telephone penetration and computer literacy lagged behind, as government and private sector attention remained fixated on Japanese-funded broadcasting.
- Limited Diversification in Media Platforms – Sri Lanka became reliant on Japanese broadcasting formats, delaying the adoption of alternative broadcasting technologies such as satellite and cable TV.
Debt Crisis and Japan’s Demands Over the LRT Project
Sri Lanka’s ongoing economic crisis has further exposed Japan’s strategic interests. After declaring bankruptcy in April 2022, Sri Lanka faced a foreign debt burden of $35.1 billion as of September 2023. Despite Japan being touted as a mediator in debt restructuring, its actions suggest otherwise.
Japan is demanding payment for the cancellation of a $1.5-billion Light Rail Transit (LRT) project, originally funded by Japanese loans. Former President Gotabaya Rajapaksa scrapped the project in 2020, citing high costs. Now, Japan insists that Sri Lanka must compensate for terminating the contract before it resumes stalled projects. Japan’s Finance Minister Suzuki Shunichi conveyed this demand to Sri Lankan politicians, emphasizing Japan’s economic leverage over the crisis-stricken country.
Economic Control Through Strategic Investments
Japan continues to invest in Sri Lanka’s digital economy and port infrastructure, but concerns persist over its true motivations. The Japanese government has pledged financial and technological support for digital transformation, including cybersecurity and e-governance. While these initiatives appear beneficial, they also allow Japan significant influence over Sri Lanka’s digital security framework, raising concerns over potential economic and political manipulation.
The Colombo Dockyard Controversy and Japanese Corporate Influence
Japan’s economic grip extends beyond technology into the maritime industry. Colombo Dockyard PLC, a subsidiary of Japan’s Onomichi Dockyard Company Limited, has faced scrutiny over suspected transfer pricing that benefits the Japanese parent company at the expense of Sri Lankan shareholders. Financial losses in Colombo Dockyard have raised alarms about Japan’s corporate practices in Sri Lanka, suggesting that Japanese firms prioritize their own financial interests over Sri Lanka’s economic well-being.
In 2024, Onomichi Dockyard announced its exit from Sri Lanka, selling its 51% stake in Colombo Dockyard. This decision follows years of financial mismanagement and losses, including a staggering Rs. 7.5 billion in retained losses. Rather than acting as a committed long-term partner, Japan abandoned the shipbuilding sector when it became unprofitable, underscoring the risks of overreliance on foreign investment.
Japan’s “Gratitude” to Sri Lanka: A Historical Betrayal?
Japan’s current stance towards Sri Lanka is in stark contrast to the historical goodwill extended by Sri Lanka to Japan in the aftermath of World War II. At the 1951 San Francisco Peace Conference, Sri Lanka’s then-Finance Minister J.R. Jayewardene made a landmark speech advocating for Japan’s independence and rejecting war reparations. Sri Lanka’s support was instrumental in Japan’s reintegration into the global community. Yet, decades later, Japan’s insistence on extracting economic gains from a bankrupt Sri Lanka raises questions about its so-called gratitude.
Conclusion: Sri Lanka Must Prioritize Self-Sufficiency
Japan’s contributions to Sri Lanka’s technological and economic landscape have been significant, but not always altruistic. While Japanese-funded projects have advanced certain sectors, they have also fostered economic dependency and corporate manipulation. As Sri Lanka navigates its economic crisis, it must critically evaluate its partnerships with Japan, ensuring that future investments serve national interests rather than deepening foreign control. By prioritizing self-sufficiency and strategic alliances, Sri Lanka can build a more resilient and independent technological and economic future.
