President focuses on industrial policy, SOE reform and exporter support ahead of 2027 Budget

President 

Anura Kumara Dissanayake 

• Pushes for streamlined institutions, targeted industrial zones and reforms to cut taxpayer burden
• Govt. reviewing industrial zones, infrastructure bottlenecks and possible concessions to support exporters and manufacturers
• SOE consolidation to focus on efficiency gains and reducing recurring costs rather than merely merging entities
• New Entrepreneurship and Industry Transformation Authority proposed to drive sector-specific development and build industrial capabilities

President Anura Kumara Dissanayake has signalled that industrial transformation, export competitiveness, public sector efficiency, and a more targeted role for the Government in economic development will be key themes as the Government prepares the 2027 Budget, which is scheduled to be unveiled on 12 November.

The President’s Office said discussions on proposals for the Industry and Entrepreneurship Development Ministry’s 2027 Budget focused on accelerating industrial zones, addressing infrastructure constraints, reforming State-owned enterprises (SOEs), and reducing the burden of maintaining inefficient public institutions.

The review also highlighted the Government’s intention to move towards a more strategic industrial policy, with attention on identifying priority sectors where Sri Lanka can develop specialised capabilities and provide the necessary ecosystem for growth.

During the pre-Budget discussion held at the Presidential Secretariat, President Dissanayake directed officials to ensure completion of ongoing projects within stipulated timelines while clearly defining the Government’s role and limitations in the industrial sector.

A key area of discussion was the progress of proposed industrial zones in Dambulla, Ingiriya, Valachchenai, Millaniya, and Katunayake, with officials reviewing challenges related to land allocation and the provision of supporting infrastructure including electricity, water, and road connectivity.

For investors and industrial operators, the focus on infrastructure readiness signals an effort to address longstanding constraints that have affected the viability and competitiveness of industrial locations.

The President also reviewed the status of SOEs under the Ministry, including challenges facing the sugar and salt industries, while calling for alternative approaches to improve performance.

In a broader governance reform signal, attention was given to consolidating institutions under the Ministry, with President Dissanayake noting that multiple entities created over time had resulted in a structure that required continued financing through public funds.

He stressed that institutional consolidation should deliver measurable efficiency improvements and reduce operational expenditure compared with previous arrangements.

Officials also presented proposals for establishing the Entrepreneurship and Industry Transformation Authority (EITA), which is expected to support entrepreneurship development and industrial upgrading.

The discussion further covered challenges faced by exporters and industrialists, with the President instructing officials to prepare proposals on broad-based concessions that could encourage investment and export growth.

The emphasis on identifying sectoral strengths and creating targeted support mechanisms suggests a shift away from broad-based incentives towards more focused industrial development strategies.

Industry and Entrepreneurship Development Minister Sunil Handunneththi, Labour Minister and Finance and Planning Deputy Minister Dr. Anil Jayantha Fernando, Industry and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe, Secretary to the President Dr. Nandika Sanath Kumanayake, Chief of Presidential Staff Prabath Chandrakeerthi, Finance, Planning and Economic Development Ministry Secretary Dr. Harshana Suriyapperuma, and Industry and Entrepreneurship Development Ministry Secretary Thilaka Jayasundara participated in the discussion.