Sri Lanka is taking significant steps to bolster its manufacturing sector with the establishment of three dedicated industrial zones, as announced in the 2025 budget presented by President Anura Kumara Dissanayake on February 17. The move aims to stimulate domestic production, enhance value addition to local resources, and boost exports. The budget allocates funds for industrial zones specializing in chemical manufacturing, rubber products, and automobile manufacturing.

A key initiative is the establishment of a dedicated industrial estate for chemical product manufacturing in Paranthan, Northern Province. This location is significant due to the presence of a state-owned chemical factory established in 1954. The government aims to leverage existing infrastructure and expertise to revitalize the chemical industry. The focus will be on producing essential industrial inputs like acids and alkalis, for domestic manufacturing, thereby reducing reliance on imports and fostering self-sufficiency. The budget document emphasized the importance of adding value to Sri Lanka's abundant mineral resources through this initiative.

Beyond Paranthan, the government also outlined plans for five additional industrial parks. These parks will be located across the island, with two in the Northern towns of Kankesanthurai (KKS) and Maankulam, one in Iranawila in the Northwest, another in Galle in the South, and one in the eastern port district of Trincomalee. This geographically diverse approach aims to stimulate regional development and create employment opportunities across the country. The government has allocated 500 million rupees for the development of these five industrial parks.

A substantial allocation of 1,500 million rupees has been earmarked for a dedicated industrial zone focused on the automobile manufacturing/assembly industry and rubber product manufacturing. This zone reflects Sri Lanka's ambition to become a competitive player in the export market for automobile components and rubber products. By creating a dedicated industrial estate, the government hopes to attract investment and foster collaboration between manufacturers, suppliers, and related industries. This integrated approach is expected to create synergies and drive innovation in both the automobile and rubber sectors.

The establishment of these industrial zones represents a significant investment in Sri Lanka's future, with the potential to create jobs, boost economic growth, and position the country as a key player in regional and global markets. The focus on value addition, import substitution, and export promotion signals a shift towards a more diversified and resilient economy. The success of these initiatives will depend on effective implementation, attracting both domestic and foreign investment, and fostering a supportive business environment.