Asahi Dyes and Chemicals SL opens US$ 20.4 million advanced manufacturing facility at Biyagama Export Processing Zone, creating 281 direct employment opportunities

Sri Lanka's high-value manufacturing and export sector received a significant boost today with the official opening of the state-of-the-art manufacturing facility of Asahi Dyes and Chemicals SL (Pvt) Ltd. at the Biyagama Export Processing Zone (BEPZ).

Developed through a strategic partnership between Asahi Dyes and Chemicals Co., Ltd. of Japan and Asons Ltd. of Sri Lanka, the project represents a US$ 20.4 million foreign direct investment, creating 281 direct employment opportunities while introducing advanced manufacturing technologies, internationally recognized production standards and world-class industrial expertise to Sri Lanka.

Speaking at the opening, BOI Chairman Duminda Hulangamuwa commended the investment and the commitment behind it, wishing the company well.

"This facility that has been built here will contribute to and enhance the vertical integration of the garment industry. As I have always said, a great deal is said about the need to diversify our export base — into electronics, manufacturing, telecommunications, and other sectors — and we do need to. But the garment industry remains the bird in the hand. It has contributed tremendously to the growth of our economy over the years. Starting some 30 to 40 years ago, it has evolved into a highly sophisticated, high-technology industry. We have achieved vertical integration in fabric and accessories, and we want to see the full range of supply-chain capability that our industry has built, thanks to the commitment of the people within it, supported and strengthened further. Our task now is to see how we grow this from here," the Chairman said.

Founded in 1932, Asahi Dyes and Chemicals Co., Ltd. has earned an international reputation as a leading manufacturer of specialty chemicals, with expertise spanning sulfur chemistry, pharmaceutical intermediates, electronic chemicals and high-performance textile dyes. Operating across Japan, China and Vietnam, the company's investment in Sri Lanka marks an important milestone in transferring advanced Japanese manufacturing technology, engineering expertise and global quality standards to the country's industrial sector.

The Biyagama facility will manufacture a range of specialty chemicals, including textile dyes, printing chemicals and finishing chemicals for the textile and apparel sector, serving export markets across Asia and Southeast Asia and strengthening Sri Lanka's export portfolio and regional supply-chain resilience.

A distinguishing feature of the operation is its connection with Tonello of Italy, one of the world's leading technology companies specializing in garment washing, dyeing, finishing and sustainable textile processing solutions, with more than 10,000 machines deployed worldwide. This collaboration connects the Sri Lankan facility to a broader international network of technological innovation and responsible manufacturing, ensuring the operation benefits from ongoing global knowledge exchange.

Sustainability is central to the new complex, which has been developed to comply with LEED v4 BD+C (New Construction) green building standards. Its operations incorporate water conservation, energy optimization, advanced wastewater treatment, carbon emission reduction, and environmentally responsible production systems aligned with ESG principles — complementing Tonello's own emphasis on water-efficient, digitally optimized and resource-efficient manufacturing.

For Sri Lanka's textile and apparel industry, the investment is expected to deliver substantial long-term value by localizing the production of internationally certified specialty chemicals, reducing dependence on imported chemical inputs, improving supply-chain efficiency, enhancing export competitiveness, facilitating technology transfer, and developing highly skilled Sri Lankan professionals through exposure to advanced Japanese manufacturing systems.

The investment strongly aligns with the strategic vision of the Board of Investment of Sri Lanka (BOI) to attract high-technology, environmentally sustainable and export-oriented investments that generate long-term economic value, strengthen Sri Lanka's industrial base, and position the country as a competitive manufacturing hub within South Asia.

Asahi Dyes and Chemicals SL represents more than a single foreign investment project. It symbolizes the convergence of Japanese technological excellence, Italian innovation and Sri Lankan industrial capability, creating a platform for sustainable growth, advanced manufacturing and international competitiveness — and reinforcing Sri Lanka's ambition to become one of Asia's leading destinations for high-value foreign direct investment.