New investment zones with ADB support to boost export-led economy

Cabinet Co-Spokesman and Minister Bandula Gunawardena 

• Govt. identifies Northern, Eastern, North Western and Southern Provinces as key regions to establish zones under PPP model

By Charumini de Silva

The Cabinet of Ministers on Monday approved the establishment of new investment zones, backed by essential technical assistance from the Asian Development Bank (ADB) to catalyse growth and boost international trade. 

The Budget 2022 contained the approved plan to develop a joint mechanism between the public and private sectors to create an export-oriented economy. 

Northern, Eastern, North Western and Southern Provinces were identified as key regions to establish the new investment zones. Accordingly, locations earmarked for development include Mankulam, Paranthan chemicals company premises, Kankasanthure cement corporation premises, Iranawila and Trincomalee. In addition, existing investment zones in Bingiriya and Hambantota are slated for expansion, further strengthening their economic significance.

“The establishment of the investment zones aligns with the broader vision of the Government to build an export-led economy via synergies between the public and private sectors to optimise the impact on the overall economy,” Cabinet Co-Spokesman and Minister Bandula Gunawardena said at the post-Cabinet meeting media briefing yesterday. 

He also said the collaboration with the ADB adds a crucial dimension in providing essential support to establish the proposed economic zones. This strategic partnership enhances the credibility and sustainability of the investment initiatives amid the economic constraints.

“The establishment and expansion of these investment zones reflect a concerted effort to attract domestic and foreign investment, stimulate job creation, and boost the export capabilities,” Gunawardena added.

The proposal to this effect presented by President Ranil Wickremesinghe in his capacity as the Investment Promotion Minister was approved by the Cabinet of Ministers at its meeting on Monday. 

The new move will compliment economic activities carried out in existing Export Processing Zones in Katunayake, Biyagama, Koggala, Avissawella and Horana among others.