Sri Lanka opens ‘Raja Salt’ high-capacity factory to boost local production and exports
Daily FT: The Government took a significant step towards self-sufficiency in salt production with the opening of the ‘Raja Salt’ factory at the National Salt Company’s Elephant Pass saltern.
The inauguration ceremony, held on 29 March, was presided over by Industry and Entrepreneurship Development Minister Sunil Handunneththi and Fisheries, Aquatic and Marine Resources Minister Ramalingam Chandrasekar.
Equipped with modern technology, the new plant has the capacity to produce five tons of salt per hour, with 1kg and 400g table salt packets set to be released to the market at the lowest price. The Government aims to increase salt production for both domestic use and exports.
The initiative is expected to generate 450 direct and indirect jobs, offering a vital economic boost to the Northern Province and beyond.
Delivering the keynote address, Minister Handunneththi emphasised the broader national significance of the project. “Today is not just a special day for the Northern Province – it is a significant milestone for the entire country. In just five months, our government has delivered its first major product to the people, providing high-quality table salt at the most affordable price in the market. If citizens pay taxes, the Government has a duty to give back. Today, we are fulfilling that responsibility,” he said.
With 13,800 tons of salt produced in 2024, production is set to increase to 20,000 tons in 2025. The expansion of the Elephant Pass saltern is expected to boost economic activity in the Northern Province while strengthening overall economic growth.
Highlighting the Government’s long-term vision for economic development, the Minister noted that salt production would not only meet domestic demand but also contribute to export earnings.
“We aim to increase production and generate foreign exchange within the next two to three years. However, the current output from the Elephant Pass saltern alone is insufficient. We must maximise machine capacity and revive production at Kurinchathivu, an abandoned salt production site from the war era. Cabinet approval has already been requested for its redevelopment,” he disclosed.
Minister Handunneththi reaffirmed the Government’s commitment to fair pricing and economic relief, stating that State-Owned Enterprises (SOEs) should serve the people rather than pursue excessive profits.
“Our goal is to ensure fair pricing, job creation, and a competitive market, especially when the private sector fails to act in the public’s best interest,” he added.
OSL take:
The expansion in Sri Lanka’s manufacturing and export sectors are a clear indication of the country’s expanding economic activities. The growth and profits being recorded by local businesses as well as the global expansion programmes undertaken by some also underscore the overall strength, resilience, growth and the business conducive environment in Sri Lanka. The country’s geographical positioning in the Indian Ocean and the strong trade ties enjoyed with many countries have also poised Sri Lanka as an emerging business destination in the South Asian region. The Sri Lankan government had also introduced many measures and incentives to further strengthen and expand the country’s manufacturing and export sectors. All these have resulted in the expansion of business/investment opportunities in Sri Lanka’s manufacturing and export sectors. Given the increasing business potential in these two sectors, foreign businesses/investors could confidently explore the growing opportunities while also looking at setting up bases in Sri Lanka to operate in many overseas markets with whom Sri Lanka enjoys strong bilateral and trade ties.
| Article Code : | VBS/AT/20250404/Z_4 |