The government has allocated Rs 5 billion through the budget 2022 to develop new industries aimed at both local and export market through an integrated mechanism between the public and private sectors under which the government will provide state land and other infrastructure facilities.
The sectors identified to be so developed are organic fertilizer, pharmaceuticals, raw material for textile and apparel industry, rubber industrial products, export based agro-processing, livestock, agricultural equipment and machinery, fisheries and aquaculture, chemical materials, electric and electronic appliances and IT products, sports equipment and steel and heavy metal industry.
Presenting the budget Finance Minister Basil Rajapaksa said “we are striving to build an export oriented economy. We will create an integrated mechanism between the public and private sectors; we will assign annual targets for each export sector and intervene regularly to solve issues faced by exporters in meeting such targets.”
The government will provide land, electricity, water, access roads both internal and external through several new investment zones to be established in the following areas:
• Organic fertilizer production - all agricultural districts
• Pharmaceutical production - Oyamaduwa, Millaniya and Arugambokka
• Raw materials for textile and apparel industry - Eravur, Monaragala, Puttalam and Kilinochchi
• Export based agro-processing zones - Mattala, Elpitiya, Hambantota and Jaffna
• Livestock production zones - Nawalapitiya, Wariyapola and Polonnaruwa
• Fisheries and aquaculture development zones through private investment - Puttalam, Mannar, Hambantota, Jaffna, Kokkadichole
• Production of chemicals - Paranthan, Pulmudei and Eppawala
• Electric and electronic appliances and IT based products - Henegama, Sooriyawewa, Kundasale and Homagama
• Sports equipment - Hambantota and Sooriyawewa
• Steel and heavy metal industry - Mirijjawila
With regard to foreign investment he proposed to carry out an in-depth analysis and review on the procedures followed by the Board of Investment in attracting Foreign Direct Investments (FDIs) to Sri Lanka.
Accordingly the government will expeditiously look into whether conditions currently imposed to facilitate attraction of FDIs should be relaxed and to identify suitable methods and to formulate a programme for this purpose.
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