Sri Lanka’s industrial ambitions are hitting a hard wall quite literally. With over 173 investors waiting for land, the government has identified land scarcity as the biggest obstacle to development. The Millaniya-based Raigampura Green Industrial Zone in Kalutara, though greenlit for 200 acres, is using only 87 acres for development. As the government rushes to revive stalled projects, Deputy Minister Chathuranga Abeysinghe pledges to balance progress with environmental integrity and public trust.
A major roadblock to Sri Lanka’s industrial growth has been identified: a critical lack of land.
Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe recently toured the “Raigampura Green Industrial Development Zone” in Millaniya, located in the Kalutara District, to assess the progress and challenges of one of the government’s key industrial initiatives.
The Millaniya Industrial Park has been planned as an environmentally sustainable industrial zone. Project leaders say that all future activities will be implemented in a manner that safeguards the safety, integrity, and quality of life for local residents.
Although the cabinet has approved the development of a 200-acre industrial zone, environmental considerations have designated 100 acres as protected ecosystem land. Therefore, only 87 acres will be developed for industrial use.
In its first phase, 24 acres are being developed with an estimated investment of Rs. 3,837 million. Once completed, this phase is expected to create 1,226 jobs. The government has already invested Rs. 908 million into the project. By 2026, at least 24 industries are expected to be operational on this site.
Deputy Minister Abeysinghe emphasized the challenges and aspirations of the government:
“One of the core objectives of this administration is to increase value-added industries and local production. However, the biggest obstacle to achieving this goal is the lack of suitable land. In the Western Province alone, 173 industrialists have applied to the Ministry requesting land for projects. Unfortunately, there is currently a severe shortage of available land for industrial development in the province.”
As a response to this challenge, the government is reviving previously stalled initiatives like the Raigam Division’s Industrial Park in Millaniya. Abeysinghe assured that this project will be developed in a way that respects environmental sustainability and earns the trust of local communities.
“We plan to move forward with transparency and community participation, ensuring that industrial development does not harm the ecosystem or the livelihoods of the people,” he added.
The Millaniya project is being held up as a model for future industrial zones across the country green, inclusive, and economically transformative. However, unless the issue of land availability is addressed, Sri Lanka’s broader industrialization efforts may remain on hold.
