China is drawing inspiration and ideas from Japan’s highly successful soft power strategy in Sri Lanka.
Historically, Japan has played a pivotal role as an economic and trade partner for Sri Lanka. By the 1980s, Japan had become Sri Lanka’s largest aid donor, maintaining this position until 2007. During this period, Japanese aid accounted for more than 25 percent of Sri Lanka’s total aid receipts.
However, in the past two decades, Sri Lanka’s economic and strategic engagements have shifted toward China and India. Between 2006 and 2019, China invested approximately $12 billion in Sri Lanka, including landmark projects like the Hambantota Port. Earlier this month, Sinopec agreed to build a $3.7 billion oil refinery on the island. India, too, has strengthened its partnership, emerging as a top trade partner and providing $4 billion in financial assistance during Sri Lanka’s 2022 economic crisis.
In comparison, Japan’s contributions during the economic crisis, such as emergency grant aid of $3.5 million in 2022 and total grant assistance of approximately $13.8 million, seem modest. Japanese private-sector investments, amounting to about $350 million across 60 enterprises, also pale in comparison. Yet, despite these figures, Japan continues to be viewed more favorably by most Sri Lankans than China or India.
This enduring goodwill is the result of Japan’s strategic use of soft power, cultural diplomacy, and historical ties, which have fostered a strong perception of Japan as a trusted partner and a country to be admired.
Japan’s enduring popularity in Sri Lanka is rooted in historical, cultural, and strategic factors. Two milestones stand out. One was Anagarika Dharmapala’s advocacy in the late 19th and early 20th century. The Sri Lankan Buddhist revivalist visited Japan four times, portraying the country as the leader of Buddhist Asia. His admiration for Japan laid the foundation for people-to-people ties and influenced Sri Lankans to see Japan as a spiritual ally. The second milestone was J.R. Jayawardene’s speech at the 1951 San Francisco Peace Conference, when as finance minister he called for clemency toward Japan for its role in World War II, invoking Buddhist teachings of forgiveness. This gesture solidified goodwill between the two nations.
These historical connections, combined with Japan’s reputation for efficient governance, technological advancement, and work ethic, have cemented its image as a post-war development success story. This image resonates deeply with Sri Lankans, given the country’s own aspirations for economic recovery and governance reform. Japan’s soft power initiatives have further reinforced its favorable image in Sri Lanka. Numerous Sri Lankan academics and politicians have trained or worked in Japan, fostering bilateral ties. Prominent figures like former Central Bank Governor W.D. Lakshman and business leader Sunil Wijesinha have received the prestigious “Order of the Rising Sun” award for promoting Japanese culture and practices. Japanese management techniques like Kaizen and 5S are widely adopted by Sri Lankan businesses, particularly in the garment industry, creating a perception of Japanese systems as superior and influencing both senior executives and workers.
Japan’s cultural initiatives, such as the Japanese Cultural Fund and the introduction of Japanese language programs at Sri Lankan universities, have deepened people-to-people ties. Over 56,000 Sri Lankans reside in Japan, forming the fourth-largest South Asian community there and serving as a cultural bridge. Events like the Bon Odori Festival and Japanese musical concerts further promote cultural understanding.
Japan’s aid programs focus on high-impact areas like infrastructure, disaster resilience, education, and health. The Japan International Cooperation Agency (JICA) has been instrumental in funding projects such as demining in former war-torn regions and providing vocational training for vulnerable communities. Japan’s alignment with grassroots human security and infrastructure development indicates a dual focus on immediate humanitarian needs and long-term capacity building.
During Sri Lanka’s civil war, Japan became a neutral mediator, appointing Yasushi Akashi as its Special Representative for Peacebuilding. Its non-colonial history and reputation for impartiality made Japan a trusted actor in sensitive negotiations. Recent aid initiatives include demining projects in the Northern Province, healthcare improvements, and educational infrastructure development.
In recent years, China has begun to learn from Japan’s soft power approach. Amid growing Indian and U.S. investments in Sri Lanka, China has adopted a distinct and cost-effective strategy that resonates well with the Sri Lankan people. This shift is evident in initiatives like the Faxian Charity Project and the China Foundation for Rural Development (CFRD)’s Smiling Children Food Package Project. These efforts distribute food aid, school supplies, and other essential resources directly to local communities, targeting vulnerable populations. For example, in the fall of 2024, China provided emergency humanitarian aid valued at 400 million Sri Lankan rupees (about $1.35 million) to assist over 100,000 affected individuals. The Chinese government also donated fabric for school uniforms, covering 100 percent of the requirement for public school students this year.
During President Anura Kumara Dissanayake’s recent visit to China, the Chinese leaders agreed to continue this practice for 2026. These initiatives, though smaller in scale compared to the financial investments by the U.S. and India, have a direct and immediate impact on the lives of ordinary Sri Lankans still suffering from economic distress.
China has also awarded up to 1,000 scholarships annually to Sri Lankan students and provided rice donations covering half a year’s lunch needs for 1.1 million students across 7,900 schools. These efforts showcase China’s evolving diplomatic strategies and its quest to establish a more benevolent global image.
The past decade has been a steep learning curve for China. Recognizing criticism of its Belt and Road Initiative (BRI) and other projects, China has shifted its focus to promoting itself through a more benevolent lens. Initiatives like the Faxian Charity Project highlight China’s commitment to addressing immediate humanitarian needs while softening its image. This strategy aligns with President Xi Jinping’s directive to “tell China’s story well” and raise the country’s soft power. Chinese Ambassador to Sri Lanka Qi Zhenhong has played a key role in orchestrating these efforts, emphasizing people-to-people collaborations to promote China’s goals in the region. The direct impact of these aid efforts on the lives of Sri Lankans has been significant, serving as a lifeline for those facing dire circumstances.
As China refines its soft power strategies, it poses a significant challenge to Japan’s long-held influence in Sri Lanka. China aims to reshape its image and strengthen its foothold in the region by adopting a more benevolent and community-focused approach. The competition between Japan and China in leveraging soft power will likely influence Sri Lanka’s future strategic alignments and development trajectory. For Sri Lanka, this presents an opportunity to benefit from the best of both worlds while navigating a complex web of international relations.
