Sri Lanka Government’s goal is to allocate 1% of the total land area for industrial use

Sri Lanka Government’s goal is to allocate 1% of the country’s total land area for industrial use due to the limited availability of lands in Sri Lanka.

This was stated by Minister of Industry and Health, Dr. Ramesh Pathirana, furthermore, 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 dollars by the year 2022.

Dr. Ramesh Pathirana made these remarks during his participation in a press conference held at the Presidential Media Centre on Friday (October 27), with the overarching theme of ‘Collective Path to a Stable Country.’

He further said:

“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 dollars 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 program 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 6 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.

Furthermore, 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.

A new sales method has been introduced for the sale of mineral sand by the Ceylon Mineral Sand Company. Bidders now have the option to submit their prices online, with the potential for the most suitable bidder’s information to be publicly disclosed concurrently with the opening of bids.

The initial sale using this method resulted in the successful sale of 62,150 metric tons of mineral sand, generating revenue of 20.33 million dollars.

Subsequently, the second sale yielded a revenue of USD 14.1 million for 30,000 MT of zircon and a portion of this income, Rs. 1726 million has been allocated to the Treasury as dividends.