Northern investment zones in KKS, Paranthan and Mankulam aim to lift the province’s GDP contribution from 4.6% to 10% with ADB-backed development.
Northern investment zones planned for Kankasanthurai, Paranthan and Mankulam could help raise the Northern Province’s contribution to Sri Lanka’s GDP from 4.6% to 10%.
Northern Province Governor Nagalingam Vedanayagam said the region has significant potential to increase its contribution to the national economy.
“There is potential to increase the Northern Province’s current contribution of 4.6% to the Gross Domestic Product (GDP) to 10%,” the Governor said.
He made the remarks during a recent special meeting at the Governor’s Office in Jaffna.
Asian Development Bank Resident Director for Sri Lanka Shannon Cowlin attended the meeting with other senior ADB officials and representatives of the Northern Provincial administration.
Vedanayagam said rapid economic development would require new investment zones in Kankasanthurai, Paranthan and Mankulam. He also stressed the importance of developing supporting infrastructure across the province.
The Government has planned three new investment zones to accelerate regional growth and encourage export-oriented production. According to the Governor, the process of transforming the required land has already begun.
Northern Investment Zones Planned Across Three Locations
The Kankasanthurai, or KKS, investment zone is planned on a 250-acre property previously belonging to the Kankasanthurai Cement Corporation.
Authorities intend to primarily use the site for apparel manufacturing and Information Technology projects.
Meanwhile, a 230-acre investment zone is planned at the Paranthan Chemicals company premises. The proposed zone will focus on chemical production and industrial manufacturing.
Mankulam will host the largest of the three developments.
A 500-acre investment centre is planned there for export industries linked to agriculture and fisheries.
Once the land transformation process is completed, the Sri Lanka Board of Investment is expected to provide essential infrastructure. This will include water, road connectivity and electricity before the zones are opened to investors.
Vedanayagam said the change of Government had created what he described as a positive and favourable investment environment.
He also said investors were showing strong interest in opportunities in the Northern Province.
Storage and Processing Gaps Affect Farmers and Fishermen
The Governor also highlighted challenges facing agriculture and fisheries.
He said rainfall during the Yala and Maha seasons had produced strong agricultural yields across four northern districts.
However, inadequate storage and processing facilities remain a major problem for both farmers and fishermen.
According to Vedanayagam, after the Government purchases paddy at a guaranteed price, middlemen buy crops from farmers at very low prices. He said this creates difficulties for both producers and consumers.
The lack of proper processing centres for field crops and vegetables also forces farmers to sell produce at lower prices.
Similar problems affect the fisheries sector.
The Governor therefore requested support from the Asian Development Bank to improve the infrastructure required for storage, processing and related activities.
Salt, Land and Jaffna Water Infrastructure
The Northern Province is also expanding salt production.
Operations have begun at the Alimankada Salt Works, while authorities have approved the commencement of activities at the Kurinchathivu, also referred to as Kunjathivu, Salt Works.
Vedanayagam said high-quality salt is being produced with the aim of eventually ending Sri Lanka’s reliance on salt imports and creating opportunities for exports.
The Governor also said authorities are taking steps to release lands that the Department of Wildlife and Forest Conservation took over in 2012.
He said those acquisitions occurred without the knowledge of the relevant District Secretary or local residents.
Vedanayagam thanked the ADB for financing the desalination project that has helped provide drinking water to the Jaffna Peninsula.
He also requested further assistance to address Jaffna’s lack of a proper sewerage system.
The proposed Northern investment zones, together with improved infrastructure, processing facilities and water projects, form part of the province’s wider effort to increase investment, exports and its contribution to Sri Lanka’s economy.
