Northern development needs both strategic vision and local enterprise

The recent Financial Times column proposing a “Northern Gateway Initiative” presents an ambitious vision for transforming Sri Lanka’s Northern Province into a strategic economic bridge between Sri Lanka and Southern India. 

For such a vision to succeed sustainably, however, large-scale infrastructure investment must first be integrated with the systematic development of local enterprise and workforce capability. Long-term progress ultimately depends not only on infrastructure and external investment but also on the strength of local industries and the capacity of the regional workforce.

A practical starting point would be the development of competency-based education aligned with industry needs within the Province and across Sri Lanka. Institutions such as Jaffna University, the College of Technology in Jaffna could partner with foreign technical institutions to provide locally delivered training and professional certifications in areas such as fisheries, food processing, logistics, equipment maintenance, and digital systems. Such programs would enable local workers and entrepreneurs to participate fully in emerging economic opportunities.

Several post-war initiatives already underway provide an important foundation for regional integration and should continue to progress. These include the KKS Port, Palaly Airport, and potential ferry links to South India. However, infrastructure development and foreign investment in large-scale projects alone will not transform the regional economy, nor serve Sri Lanka’s interests unless they are closely aligned with the needs of local industries. 

The Northern Province already has several sectors with strong potential for value-added growth. Fisheries remain a cornerstone of the regional economy, with products such as sea cucumber capable of commanding premium prices in international markets. Agriculture also offers opportunities to expand beyond primary production into processing, dehydration, packaging, and export of products such as chillies, onions, palmyrah-based foods, and other specialty products. Agro-processing, marine products, and small-scale manufacturing could all benefit from improved logistics, storage, and market access.

Unlocking this potential requires a focus on building integrated value chains rather than relying solely on large-scale projects. This means coordinated planning of collection systems, cold storage, processing facilities, logistics networks, and marketing channels that support the primary industries of fisheries and agriculture. Cooperatives, small and medium enterprises, universities, and technical institutions all have important roles to play in strengthening these local economic ecosystems. Attracting external investment in sectors such as IT services can also support growth, provided such investment is integrated with the development of local capacity.

While the Northern Gateway proposal contains several useful ideas, certain institutional elements merit careful consideration. Proposals such as the creation of a Northern Gateway Development Corporation or a Northern Single-Window Authority operating under the aegis of a foreign Government raise legitimate questions regarding governance and long-term institutional accountability.

Anchoring development

Development in the Northern Province must ultimately remain anchored within Sri Lanka’s national policy framework and democratic institutions. Major economic strategies should therefore be developed and implemented through collaboration between the Government of Sri Lanka, the Northern Provincial Government and Council, local authorities, and regional economic stakeholders.

A practical approach could involve several sequential steps.

First, the Government could work with Northern Provincial authorities to digitally map the region’s economic activities and value chains, particularly in fisheries, agriculture, agro-processing, and marine products, in order to identify opportunities for expanding production, processing, and exports. Parallel digital mapping of land ownership boundaries and land-use designations would also provide an essential foundation for coordinated infrastructure development.

Second, the information generated through this mapping exercise could be used to develop long-term development plans in collaboration with local stakeholders, including producers, cooperatives, local authorities, and private investors. Using digital platforms, the mapped data could be continuously updated and analysed to guide decisions on infrastructure, logistics, processing facilities, and market access. Such a system would allow fisheries, agriculture, and marine industries to evolve dynamically while keeping planning responsive to market opportunities, environmental conditions, and technological change.

Third, infrastructure investments including ports, airports, transport corridors, and renewable energy projects, should be considered together with the needs of these emerging economic clusters so that local producers can directly benefit from improved connectivity.

This article is an appeal to governments at all levels to consider a balanced approach that integrates strategic investment with locally driven value-chain development. The Northern Province is referenced here in response to the recent article and could serve as a pilot model for broader regional economic development across Sri Lanka.

Members of the Sri Lankan diaspora stand ready to help catalyse this process through partnerships and investment in collaboration with national and provincial institutions. If strategic infrastructure investment is combined with the systematic development of local enterprise and value chains, the Northern Province could become not only a economic link between Sri Lanka and India, but also a model for inclusive and sustainable regional growth across Sri Lanka.

(The author is an energy sector regulatory consultant based in Calgary, Canada. He has been involved in economic development initiatives in Sri Lanka’s Northern Province and has a long-standing interest in regional development, infrastructure planning, and sustainable economic growth)