Sri Lankan Government set’s goal to allocate 1% of overall land area for industrial use
Daily FT: Industry and Health Minister Dr. Ramesh Pathirana yesterday stated that due to the limited availability of land for industrial purposes in Sri Lanka, the objective is to designate 1% of the country’s total land area for industrial use.
Furthermore, he pointed out that there was a remarkable opportunity to achieve a historic record in our country’s export earnings, with the potential to reach $ 13.1 billion by the year 2022.
Pathirana made these remarks during his participation in a press conference held at the Presidential Media Centre yesterday with the overarching theme of ‘Collective Path to a Stable Country.’
Following are some of the remarks he made at the briefing:
“Amid the recent dual challenges of the COVID-19 pandemic and economic crises, individuals across all sectors, from small enterprises to large corporations, devoted their collective efforts to enhance our country’s production. Their dedication deserves our sincere appreciation. Our nation’s entrepreneurs played a pivotal role in elevating both domestic production and exports, particularly during periods of import restrictions. As a result, there was a promising opportunity to achieve an unprecedented milestone by generating an export income of $ 13.1 billion by 2022.
Sri Lanka faces limitations in the available land for industrial purposes, hindering the growth of our industrial sector. To address this, measures are being taken to expand industrial land allocation, with a target of dedicating 1% of the nation’s total land area for industrial purposes.
The National Policy for Industrial Development of Sri Lanka (NaPID) has been meticulously formulated and presented to the Cabinet. It has gained approval for inclusion in Sri Lanka’s National Policy Framework (2023-2048) by the Committee on Economic Stabilization Revitalization and Growth Enhancement.
Furthermore, a comprehensive five-year strategic plan related to the industrial policy has been developed and its implementation is already underway within the ministry.
The process of amending the Industrial Promotion Act No. 46 of 1990 to align with current and future requirements has reached its conclusion. The initial draft, along with recommendations from the Drafting Department, has been finalized.
Additionally, the second draft related to the formulation of the national policy regarding automobile production, including assembly and manufacturing of automobile components, has been completed. This draft has been submitted to relevant stakeholders and after productive discussions; the national policy concerning vehicle assembly is nearing its finalization.
Committees appointed to review the initial draft of the E-Vehicle Guideline have provided valuable suggestions. Taking these recommendations into account, work on the revised guidelines has commenced and is expected to conclude shortly. Furthermore, approval has been granted for the establishment of 15 new institutions associated with car assembly and car parts production in 2023.
As part of the special national programmed for creating industrial zones and industries at the regional and district levels, essential development activities are underway at identified regional industrial estates that can be swiftly completed. This initiative encompasses 32 existing industrial estates and the creation of six new ones in Aluthapola, Dambulla, Sandamalgama, Suriyawewa, Mahawa and Wellawaya. Additionally, plans are in place to establish a 100-acre industrial park in the Katunayake Katana area, equipped with necessary facilities for electric vehicle assembly and accessory production.
Three new industrial posts are in the process of being established, including Milleniya in the Kalutara district, Elpitiya in the Galle district and Poththapitiya in the Kandy district.
OSL take:
Along with the ongoing economic activities, Sri Lanka is also looking at further expanding the county’s industrial sector. The increasing local demand as well as the move to expand the export sector have resulted in the need for further expansion in Sri Lanka’s industries sector. The many trade agreements as well as trade concessions enjoyed by the country have also helped boost the country’s industries sector, especially the manufacturing and export sectors. Sri Lankan authorities are also engaged in attracting foreign businesses/investors in to the country’s industries sector while also promoting the local export sector in foreign markets, including new markets. The ongoing economic activities and the incentive schemes offered by the government of Sri Lanka continues to attract foreign businesses/investors to explore the expanding opportunities in Sri Lanka’s industries sector including in the manufacturing and export sectors. Given the growth and business potential in these sectors, foreign businesses/investors could confidently explore the expanding opportunities in Sri Lanka. Foreign businesses could also look at forming partnerships or joint ventures with local businesses with the aim of further expansion.
| Article Code : | VBS/AT/20231101/Z_5 |