ECONOMYNEXT – Sri Lanka’s 2025 budged has allocated funds to establish dedicated industrial zones for chemical manufacturing for domestic consumption and rubber products as well as automobile manufacturing for export markets, the official budget document showed.
The document was presented to the parliament by President Anura Kumara Disanayake in his capacity as the Finance Minister.
The industrial zone for chemical manufacturing is proposed in the Northern Sri Lankan town of Paranthan, where the country has had a state-owned chemical factory since 1954.
“With the aim of improving value addition to Sri Lanka’s extensive mineral resources and providing essential industrial inputs for domestic manufacturing, it is proposed to establish an Industrial Estate in Paranthan, Northern Province dedicated for chemical product manufacturing including acids and alkalis,” the budget document said.
The government also proposed to have five industrial parks – two in the Northern Kankesanthurai (KKS) and Maankulam, one in the Northwestern town of Iranawila, one in the Southern district of Galle and one in the Eastern port district of Trincomalee.
The government has allocated 500 million rupees.
It has also allocated 1,500 million rupees for a dedicated industrial zone for automobile manufacturing/assembly industry and rubber product manufacturing.
“A significant level of investment in the domestically value-added automobile manufacturing/assembly industry and rubber product manufacturing is an important factor to cater to the demand required by the components manufacturing industry to become competitive in the export market,” the budget said.
“With this purpose, it is proposed to establish an Industrial Estate dedicated for Automobile components and rubber manufacturing.” (Colombo/February 17/2025)