Sri Lanka’s Northern Province to be positioned as an investment hub
The Morning: Sri Lanka signaled a renewed push to channel investment into the Northern Province with the conclusion of the Northern Investment Summit 2026, as policymakers outlined infrastructure, industrial zone, and connectivity plans aimed at integrating the region more closely into national and global value chains.
Held on 21 and 22 January under the theme Building a Resilient, Inclusive, and Globally Connected Northern Economy, the summit brought together Government officials, local and foreign investors, diaspora representatives, and development partners to assess the North’s readiness for large-scale, long-term investment.
Organisers said the summit marked a shift in how the Northern Province is positioned within the country’s economic strategy, moving from post-conflict recovery toward investment-led growth. The region has a literacy rate of about 93% and a population of roughly 1.3 million, supported by institutions such as the University of Jaffna and the University of Vavuniya.
Board of Investment of Sri Lanka Chairperson Arjuna Herath said the Government’s focus is on building an investment ecosystem aligned with the North’s strengths, with priority given to transport, logistics, and industrial infrastructure. He said improved road connectivity, upgrades to logistics systems, expanded air links, and port development were central to reducing bottlenecks and improving access to domestic and regional markets, particularly India.
Herath also outlined plans to establish three industrial zones to anchor economic activity in the province. Kankesanthurai is expected to function as a mixed industrial zone with a focus on apparel and manufacturing, Paranthan has been designated a chemical zone with initial groundwork underway, and Mankulam is planned as a value-addition hub targeting processed exports in agriculture, dairy, and fisheries.
OSL take:
Sri Lanka’s geographical positioning in the Indian Ocean in close proximity to India, which is an emerging global economy as well as the strong trade ties enjoyed by the country with many foreign countries and the increasing business conducive environment in the country, have all positioned Sri Lanka as an emerging business destination in the region. There is an increased interest among foreign businesses/investors to explore the expanding business/investment opportunities in Sri Lanka given the country’s economic resilience and growth. While local authorities are also aggressively working on attracting more foreign businesses/investors to the country, Sri Lanka’s target of becoming a regional hub has expanded the business/investment opportunities in all key economic sectors in the country. It is in such a backdrop that Sri Lanka is looking at promoting the Northern Province of the country as an emerging investment hub. Given the Northern Province’s proximity to India and the many businesses/investments engaged in by Indian businesses/investors in the province and its increasing attraction as a trade, investment and tourism destination, foreign businesses/investors could explore the many business/investment opportunities in the province. Also, businesses/investors interested in doing business with India could look at setting up bases in Sri Lanka, especially in the Northern Province, to engage with India using the preferential treatment enjoyed by Sri Lanka with India.