In a sharply worded diplomatic nudge, Japanese Ambassador to Sri Lanka Akio Isomata has voiced serious concern over what he describes as excessive taxes imposed on Japanese electric vehicles imported into Sri Lanka taxes he claims are disproportionately higher than those on vehicles from other countries.
Speaking during a recent discussion, Ambassador Isomata warned that if Sri Lanka is eyeing a future Free Trade Agreement (FTA) with Japan, the issue of vehicle taxation must be addressed head-on. “We cannot talk about free trade if our cars are being taxed unfairly,” he stressed.
Adding a pointed historical reference, Isomata drew parallels to the trade tensions Japan once faced with the United States under former President Donald Trump. “When Trump slapped tariffs on us, Japan didn’t waste time, we acted. Our Prime Minister called Trump on April 7, and two ministers were appointed to resolve the issue immediately,” he recalled. “This is not our first trade crisis, we’ve dealt with bigger ones since the 1930s.”
Despite the economic friction, Isomata was clear: Japan has received no formal request from Sri Lanka for a trade deal, and Tokyo is not interested in symbolic agreements. “A free trade agreement will only happen if it’s mutually beneficial not for show, not for politics,” he stated firmly.
Citing past challenges from voluntary export restrictions on cotton in the 1930s to automotive disputes in the 1970s—the Ambassador emphasized that Japan has a long history of navigating complex trade barriers. Now, he says, it’s up to Sri Lanka to show whether it wants genuine partnership or just to keep cashing in on vehicle tariffs.
