February 10, 2023, Colombo: Japanese giant Mitsubishi Corporation has decided to wind up operations in Sri Lanka next month after being integral to bilateral ties and some of the country’s key infrastructure projects for nearly 60 years. The closure of the Colombo Office by Mitsubishi by 31 March has come as a big shock to the private sector, both local and foreign, which described the move as a significant setback for Sri Lanka.
Sources said for Mitsubishi, Sri Lanka was one of its first overseas offices as it contributed immensely towards the businesses and many Sri Lankan companies. It also significantly impacted the bilateral relationship between Japan and Sri Lanka.
Japan is Sri Lanka’s second-largest lender, with $ 2.46 billion outstanding as of September 2022. A key reason for closing the office is Sri Lanka’s default on external debt, negative international ratings and economic outlook.
Mitsubishi operations was a key partner in several Japan International Cooperation Agency (JICA) funded projects. Relations between Sri Lanka and Japan have been strained in recent years due to the abrupt cancellation of several critical projects, including those involving Light Rail Track (LRT) and Liquefied Natural Gas (LNG) proposed by Japan.
At present, Mitsubishi Corp.’s Colombo office employs around 20, but its businesses and projects provide livelihoods to thousands in multiple sectors.
