Sri Lanka plans to establish 18 new industrial zones as part of its efforts to attract manufacturing investment, with responsibility divided between the Ministry of Industry and Entrepreneurship Development and the Board of Investment.
Deputy Minister Chathuranga Abeysinghe disclosed the proposed expansion during the NDTV World Summit 2026 in New Delhi.
According to the government’s October 23 announcement, 11 zones are planned under the ministry and another seven under the Board of Investment.
The announcement did not provide a complete list of locations or a timetable for establishing the zones.
Ministry to oversee the larger share
The proposed division places approximately 61.1% of the 18 zones under the Ministry of Industry and Entrepreneurship Development.
The remaining 38.9% would fall under the Board of Investment.
Industry Ministry 7 zones
Board of Investment
The two institutions have different responsibilities within Sri Lanka’s industrial development system.
The Industry Ministry works with domestic industrial enterprises and sector-development programmes.
The Board of Investment administers investment promotion and projects operating under its regulatory framework.
The latest announcement does not specify which industrial activities will be assigned to each proposed zone.
Manufacturing and technology among investment priorities
During the discussion in New Delhi, Abeysinghe identified manufacturing, agricultural value addition, logistics, renewable energy, marine industries and technology as areas where Sri Lanka is seeking greater investment.
He also encouraged foreign businesses to establish partnerships with existing Sri Lankan enterprises.
The government has been promoting changes to investment procedures and digital public services as part of its efforts to attract businesses.
However, the October 23 announcement provides no project-level financial commitments associated with the 18-zone programme.
It does not identify confirmed investors, individual construction budgets or the amount of private capital expected to be mobilised.
The government intends to develop 18 industrial zones.
Eleven would come under the Industry Ministry and seven under the BOI.
The statement does not establish the total project cost, confirmed financing or expected completion dates.
Land and infrastructure requirements
Industrial zones require more than factory plots.
Businesses depend on electricity, water, wastewater treatment, road access and reliable transport connections before they can begin production.
The location of each proposed zone will influence the cost of providing those services.
Land acquisition and environmental approvals may also affect implementation, depending on the sites selected and the industries proposed.
The government’s latest statement does not disclose whether the necessary land has already been identified for all 18 zones.
Nor does it provide a breakdown of infrastructure expenditure expected from public funds.
Earlier Lakbima News reporting examined Sri Lanka’s public investment expenditure during the first half of 2026, when capital spending remained below the level originally planned.
That financial position forms part of the wider background against which new industrial infrastructure proposals will be implemented.
Investment commitments still to be established
The proposed zones were presented during a discussion aimed at attracting international investors.
The October 23 statement does not announce the signing of investment agreements covering the entire programme.
It also does not identify a target number of jobs or provide expected export earnings from the proposed facilities.
Those figures will depend on the industries established, the companies investing and the timetable for bringing individual zones into operation.
The government has outlined the intended institutional division of the programme. Project-level approvals and financing details will determine how the announced expansion proceeds.
Government Information Department, 23 October 2026
