In a startling revelation that could shake diplomatic and investor confidence, Japanese Ambassador to Sri Lanka, Akio Isomata, has publicly stated that Japan itself has been a victim of corruption and fraud in Sri Lanka with local entities allegedly demanding bribes and commissions from Japanese companies.
Speaking during a recent roundtable hosted by the Ponfinder Foundation in Colombo, Ambassador Isomata didn’t mince words. “Japan has been under serious pressure because of the corruption taking place in Sri Lanka,” he declared, adding that he believes the current government led by President Anura Kumara Dissanayake is moving in the right direction with its National Anti-Corruption Action Plan.
According to the Ambassador, several Japanese firms attempting to invest in Sri Lanka have faced unacceptable demands, including illicit payments and commissions practices strictly prohibited under Japanese law and corporate policy. “Japanese companies are not permitted to engage in bribery or commission schemes,” he emphasized. “When they refused to comply, they ran into problems.”
These disclosures confirm longstanding allegations about the murky and often hostile investment climate in Sri Lanka, particularly for foreign companies that refuse to “play the game.”
Ambassador Isomata went on to explain that Sri Lanka holds immense strategic importance to Japan given its location in the Indian Ocean and its potential as a regional economic hub. However, he warned that unless the island nation builds a fair, reliable, and transparent business environment, foreign investors including those from Japan will remain hesitant.
Still, there is room for optimism. With Sri Lanka making progress on its economic recovery through an IMF-backed program and international debt restructuring, the Ambassador said he sees an opportunity for renewed Japanese interest in Sri Lanka. “Japanese companies are watching,” he said. “They’re waiting for the right conditions to return.”
Isomata stressed that the burden now lies with the Sri Lankan government to ensure the path forward is clean. “A zero-tolerance approach to corruption is not optional it’s essential,” he concluded.
The Ambassador’s comments come at a critical time as Sri Lanka tries to rebuild investor confidence after years of economic instability and political unrest. But this public diplomatic warning may be the wake-up call Colombo cannot afford to ignore.
