BOI puts Paranthan, KKS zones on 2027 infrastructure track

• Fast-tracks Northern Province work for investment-led growth; to open investor land reservations in Paranthan by end-Nov. as internal infrastructure work in both sites targeted for Jan. 2027
• Proposes a single-point mechanism and provincial facilitation centre to cut approval and coordination delays
• Sea cucumber and seaweed identified as potential commercial and export-oriented industries for the North

The Board of Investment (BOI) is moving to fast-track the proposed Export Processing Zones (EPZs) at Paranthan and Kankasanthurai (KKS), with internal infrastructure development at both sites scheduled to begin by early January 2027.

With Paranthan and KKS now assigned early-2027 infrastructure milestones, the BOI’s focus is increasingly shifting towards converting the Northern Province’s investment potential into operational projects through faster approvals, improved infrastructure coordination and better visibility of the region’s workforce and export opportunities.

The move follows a visit to the Northern Province by BOI Chairman Duminda Hulangamuwa and Director General Dr. Sulakshana Jayawardena, during which the BOI engaged provincial and district authorities, infrastructure agencies and existing and prospective investors on accelerating investment into the region.

At Paranthan, the BOI said it would open land reservations to investors by the end of November 2026 and commence internal infrastructure development by early January 2027.

A similar timetable has been agreed for KKS, with internal infrastructure development also scheduled to begin in early January 2027, placing the two proposed industrial zones on parallel implementation tracks.

The developments are being positioned as part of a broader effort to attract export-oriented investment to the Northern Province, while addressing some of the administrative and infrastructure constraints that have historically affected investment projects.

Following the site visits, the BOI plans to host an investor familiarisation and investment promotion programme in November, bringing leading investors and investor associations to the Northern Province to assess opportunities, including those at Paranthan and KKS.

Discussions with existing and prospective investors highlighted several practical constraints requiring attention, including inconsistencies in land valuation and allocation procedures, delays in approvals and clearances from line agencies and coordination gaps between Government institutions.

The BOI Chairman also proposed establishing a Single-Point Coordination Mechanism to track investor issues through to resolution.

The mechanism is intended to coordinate with relevant Government institutions and administrative and political authorities where necessary to expedite approvals and address implementation bottlenecks, reducing the gap between investment approval and commencement of operations.

Investor Facilitation Centre in the Northern Province.

Hulangamuwa discussed the proposal with Northern Province Governor Nagalingam Vethanayahan, along with the implementation schedules and target timelines for the Paranthan and KKS zones.

The proposed centre would provide investors with a single point of contact for approvals and services involving both regional and national Government institutions.

Alongside land and infrastructure, the BOI is seeking to strengthen the region’s investment proposition through a proposed Regional Manpower Information Database/Data Centre.

The initiative would capture information on the availability, qualifications and skills of the Northern Province workforce, enabling investors to assess the region’s labour pool when considering projects.

The BOI said access to a skilled and readily available workforce can be a critical consideration for investors alongside land and infrastructure.

The initiative is particularly relevant as the proposed industrial zones are expected to generate new employment opportunities and support the development of export-oriented industries in the region.

The BOI also explored potential new export sectors during its Northern Province visit, including sea cucumber and seaweed cultivation in Ariyalai, Jaffna.

Hulangamuwa and Jayawardena met stakeholders and toured cultivation projects to assess the potential for scaling up and commercialising the activities as export-oriented enterprises.

The BOI said the sectors have potential to generate employment and income while broadening the Northern Province’s export base.