New Visa Regulations Impact Foreign Business Owners in Japan

Under the leadership of Prime Minister Sanae Takaichi, recent changes in visa policies are prompting established foreign business owners in Japan to leave the country.

For three years, Mahendra Dharmapriya, a Sri Lankan restaurant owner, enriched his community in rural Japan with the authentic aromas of his homeland. His dishes included creamy lentils, fish curry, egg hoppers, and black tea with ginger.

On a Saturday morning, Mr. Dharmapriya served his final meal at Daiya Ceylon, his restaurant located in Shimotsuke, a town approximately 66 miles from Tokyo. He had to close his establishment due to new visa requirements aimed at reducing the number of foreigners in Japan. Next week, he will return to Sri Lanka.

“I felt so alone,” recounted Mr. Dharmapriya, 40, who has resided in Japan since 2015. During an interview at his restaurant, he distributed unopened spice packets and cassava chips to friends, expressing his lack of hope for the future.

Prime Minister Takaichi secured her position last year by pledging to tighten immigration and tourism regulations. Her administration is now following through by examining the roughly 47,000 foreigners holding business manager visas, just like Mr. Dharmapriya.

Japan has historically maintained a conservative stance on immigration, with foreign residents comprising a mere 3 percent of the population. Some experts argue that increasing immigration is necessary to address labor shortages and the declining population. However, a surge in nationalist sentiment has emerged, with some activists advocating for more stringent controls under the “Japan First” initiative.

Conservative voices insist that foreigners are misusing Japan’s visa systems to prolong their stay indefinitely. The government’s countermeasure involves tougher requirements for business manager visas. Applicants must now present $188,000 in capital, significantly higher than the previous amount of $31,000, and employ at least one full-time staff member.