I'm sorry I'm not well-read enough in Icelandic literature to have anything to say about Sjón's novels, the flagship of which seems to be The Whispering Muse, but I'm an AMERICAN, so to me, Iceland is basically just the place I think Bjork might be from. But Bjork has actually worked with Sjón to write some songs, so let's see... She had this to say about him:
"When I need something epic and lyrical, I call upon Sjón."
Which is awesome, even disregarding the stony-eyed fantasy video game phrase "I call upon."
Bjork's rolodex is probably organized by phrases like "epic and lyrical," "pretty and effervescent," or "meandering and purple" rather than last names (since, duh, none of her friends have last names).
Anyway, go see him read tonight at Powell's on Hawthorne at 7:30. He's actually the President of the Icelandic PEN Centre and generally an important figure in Scandinavian and international literature, music, and culture.