Bangladesh is seeking to attract foreign investment and development finance to expand economic opportunities, strengthen agriculture and trade, and unlock the potential of its tourism sector, with Canada announcing C$45 million in new grants and Japanese investors signalling an initial $1.2 billion investment in tourism and hospitality.
The Canadian grant will support four new initiatives focusing on agricultural innovation, economic reform, access to finance and trade expansion, according to a statement issued by the Canadian High Commission in Dhaka on Sunday.
Separately, a delegation of Japanese investors announced the proposed investment in Bangladesh’s tourism and hospitality sector at a meeting with Civil Aviation and Tourism Minister M Rashiduzzaman Millat at the ministry’s conference room on Sunday afternoon.
The government assured the investors that necessary steps would be taken promptly after formal investment proposals were submitted. The Bangladesh Tourism Board would also facilitate visits by the investors to tourist destinations across the country.
The Japanese investment is expected to target a sector with considerable potential, given Bangladesh’s natural attractions, cultural heritage and historical sites.
The minister said the country had significant opportunities to develop destinations such as the Sundarbans, the world’s largest mangrove forest; Cox’s Bazar, known for its long natural sandy beach; and the tea gardens of Sylhet into internationally recognised tourist attractions.
Canada expands development partnership
The Canadian High Commission said Randeep Sarai, Canada’s Parliamentary Secretary to the Minister of International Development, visited Bangladesh from 11 to 14 October to strengthen bilateral relations through a strategic partnership and explore opportunities for development and shared prosperity.
During the visit, Sarai met Prime Minister Tarique Rahman, State Minister for Foreign Affairs Shama Obaid Islam, and the Prime Minister’s Adviser and Spokesperson Mahdi Amin.
Discussions covered cooperation in agriculture, health, education, skills development, energy and climate finance. The two sides also highlighted the importance of joint efforts by Bangladesh, Canada and other partners to achieve a sustainable resolution to the Rohingya crisis.
In Dhaka, Sarai visited a skills development training centre run by BRAC in Ashkona, where he learned how training supported by Canada was helping young people, particularly women, develop skills and create employment opportunities.
Canada has contributed C$44 million to a broader programme involving BRAC and Australia. The initiative has worked over the past five years to improve the livelihoods of disadvantaged communities in Bangladesh.
Sarai also visited the International Centre for Diarrhoeal Disease Research, Bangladesh (icddr,b), where he was briefed on Canadian-supported research aimed at developing affordable, life-saving healthcare and innovative medical solutions.
Canada has provided C$15 million to support icddr,b’s institutional operations and a further C$24 million for research on sexual and reproductive health.
Support for Rohingya and climate-resilient agriculture
In Cox’s Bazar, Sarai met Rohingya refugees and learned how Canada’s contribution of more than C$600 million since 2018 has helped expand access to education, skills training and livelihood opportunities for refugees and members of host communities.
He also met Refugee Relief and Repatriation Commissioner Mohammad Mizanur Rahman to discuss stronger cooperation among Bangladesh, Canada and regional partners in addressing the Rohingya crisis.
During the visit, Sarai toured a demonstration centre operated by the International Maize and Wheat Improvement Center (CIMMYT), where research initiatives were showcased to demonstrate how farmers could improve crop yields, meet growing food demand and adapt to climate change.
According to the Canadian statement, CIMMYT will work with Bioenterprise Canada to promote innovative agricultural methods and technologies, with the aim of increasing food production and creating new economic opportunities in Bangladesh.
The visit also included Gildan Activewear Bangladesh Ltd, one of Canada’s largest investors in Bangladesh’s ready-made garment sector, with operations spanning manufacturing and information technology.
Discussions focused on expanding bilateral trade and investment, growing business operations, creating jobs, improving workforce skills and fostering a business-friendly environment.
After leaving Bangladesh, Sarai travelled to Thailand to attend the 2026 annual meetings of the International Monetary Fund and the World Bank Group, where he was expected to advance Canada’s efforts to strengthen economic partnerships and promote inclusive growth across the Indo-Pacific region.
The Canadian grant and the proposed Japanese investment come as Bangladesh seeks to diversify its sources of investment, improve productive capacity and generate new employment opportunities. The Japanese proposal, however, remains subject to the submission of formal investment plans and subsequent government action.