Sri Lanka approves Rs. 1.4 billion for 10-city development plan
EconomyNext: Sri Lanka’s cabinet has approved a proposal to fast-track urban modernisation and branding projects across select towns, including the president’s hometown of Thambuttegama, at a cost of Rs. 1,475 million.
The plan, called the 10 Cities Development Programme, aims to use a prioritised, data-based approach for urban development across the country, with 217 prioritised projects, minister Nalinda Jayatissa told reporters.
These projects will take place in Jaffna, Matale, Hatton, Batticaloa, Chilaw, Thambuttegama, Vavuniya, Eheliyagoda, Badulla, and Matara.
The basis for selecting these places was not explained.
The approved money includes Rs. 500 million that was already set aside in the budget for developing these cities.
Separately, the 2026 budget has set aside Rs. 1,300 million to the Ministry of Transport, Highways and Urban Development to redevelop and brand cities like Anuradhapura, Kataragama, Colombo, and Kandy, with Rs. 325 million to be spent this year.
Jayatissa said the government wants to build unique identities for these cities to attract visitors.
“When it comes to attracting domestic and international tourists, developing those cities in a manner that creates a unique identity is a globally recognised concept. That is exactly what branding is,” Jayatissa said.
The programme will not make every city look the same, he said. Instead, the plan is to design development projects that match the unique features of each individual city.
“This does not mean developing Anuradhapura, Colombo, Matara, and Trincomalee all in the exact same manner. Instead, the expectation is to implement development projects by taking the unique characteristics existing within those respective cities into consideration,” Jayatissa said.
The Ministry of Transport, Highways and Urban Development will work together with other ministries and state institutions to carry out the proper plan across all 10 cities, he said.
OSL take:
Sri Lanka’s approval of the 10 Cities Development Programme marks another step in the country’s broader urban transformation agenda, creating new business/investment opportunities for foreign businesses/investors seeking to participate in long-term growth projects. With 217 prioritised development initiatives planned across selected cities and towns, the programme aims to modernise urban infrastructure, improve public services, and strengthen the country’s attractiveness as a regional economic hub. The expansion of urban development projects presents opportunities across sectors such as construction, engineering, smart city technologies, transportation, utilities, real estate, environmental services, and urban planning. As Sri Lanka continues to invest in modern infrastructure and enhance connectivity between key economic centres, foreign businesses/investors can explore partnerships, project investments, technology transfers, and service provision opportunities. Supported by ongoing economic reforms and a strategic location at the crossroads of major global trade routes, Sri Lanka is positioning itself as an increasingly attractive destination for businesses looking to participate in the country’s next phase of development and regional integration.
| Article Code : | VBS/AT/20260609Z_3 |