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National Industrial Policy and 2023-2027 Strategic Plan will build a globally competitive industrial base – Secretary to the Ministry of Industries

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Secretary to the Ministry of Industries, Shantha Weerasinghe announced that the “National Industry Policy,” along with the five-year strategic plan for 2023-2027, has been prepared and submitted to the Department of National Planning.

This initiative aims to establish a globally competitive national industry base. By 2030, the policy aims to increase the manufacturing sector’s contribution to GDP from 16% to 20%, raise the role of entrepreneurship in the workforce from 2.8% to 7%, and boost the share of industrial exports in GDP from 14% to 20%.

Addressing the press briefing titled “Two Years of Progress and Way Forward” held at the Presidential Media Centre (PMC) today (31), the Secretary noted that the final draft for amending the Industrial Promotion Act has been submitted to the Attorney General’s Department for approval, ensuring it meets current and future needs.

The secretary to the Ministry of Industries further explained;

The Ministry of Industry has played a crucial role in reviving the country’s economy amid past economic crises. Our goals for 2030 include increasing the manufacturing sector’s contribution to GDP from 16% to 20%, raising the role of entrepreneurship in the workforce from 2.8% to 7%, and boosting industrial exports’ contribution to GDP from 14% to 20%. To achieve these objectives and build a globally competitive national industry base in Sri Lanka, a five-year strategic plan for 2023-2027 has been prepared and submitted to the Department of National Planning.

Additionally, the final bill to amend the Industrial Promotion Act has been submitted to the Attorney General’s Department for approval, ensuring it addresses both current and future needs. A Standard Operating Procedure (SOP) outlining guidelines, regulatory procedures, and the ‘Local Value Addition Theory’ for local vehicle assembly has also been introduced. Following its implementation, seventy new vehicle models and twenty-nine motor vehicle assembly plants have been approved in the country.

The Ministry of Industry has introduced a registration system for manufacturing industries, with 3,925 industries registered by June 2024. Industry registration is now available online, allowing for global access.

Under the initiative to enhance leadership and entrepreneurship in small and medium scale enterprises, the revolving fund loan scheme has allocated Rs.293.4 million for 33 projects in 2022. For 2023, Rs.1, 753 million has been provided for 176 projects through 10 partnering banks. So far in 2024, Rs.1, 647 million has been allocated for 179 projects.

Under the environment-friendly project, the revolving fund loan scheme allocated Rs.293.4 million for 33 projects in 2022 and Rs.155 million for 7 projects through 11 participating lending institutions (banks) in 2023. So far in 2024, Rs.256 million has been provided for 15 projects.

The Valaichchenai Paper Mill, revitalized through state enterprise restructuring, has produced 3,899.37 metric tons of paper from 2022 to April 2024. Additionally, the Embilipitiya Paper Mill, under a public-private partnership, began production in April this year.

Under the program for optimal utilization of mineral resources, Lanka Mineral Sands Limited adopted a new sales method and made its first sale in 2023. This approach generated USD 20.33 million from the sale of 62,150 metric tons of mineral sand and USD 14.1 million from 30,000 metric tons of zircon concentrate.

During the period 2023-2024, Lanka Phosphate Limited produced approximately 50,000 metric tons of rock phosphate, earning Rs.1, 080 million..

Additionally, gem, jewellery, and diamond exports yielded around USD 478 million in 2023, and USD 194 million contributed to the national economy by the end of June 2024. To support this, 27 booths for buying and selling gems have been established, including an export centre, a fully equipped gem laboratory, and an export centre in Demuwawatha, Ratnapura constructed at a cost of Rs.450 million.

 



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Needs of populace hit by Cyclone Ditwah seen as waiting to be addressed

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Lionel Bopage: ‘Recovery painfully slow.’

By Hiran H. Senewiratne

The government is yet to address fully the needs of the Cyclone Ditwah affected populace though one year has elapsed. The devastation cost the country more than US $ 4.1 billion, an Australia-based Chartered Engineer of Sri Lankan origin said.

‘Cyclone Ditwah affected more than 2.2 million people in 25 districts, which is considered to be one tenth of the population. However, only 39 percent of the allocated funds have been spent to date, the speaker, a one-time General Secretary of the JVP, now living in Australia Lionel Bopage said.

He made these comments at a Rotary Club Colombo South monthly meeting held at the Kingsbury Hotel, Colombo recently.

Bopage quoted from a Loughborough University research report published in February to the effect that Sri Lanka has under invested in prevention but over invested in recovery.

Bopage added: ‘The largest single economic category affected were not buildings but the agriculture sector which provides livelihoods for the majority of affected persons. Therefore agricultural livelihoods have been hit most.

‘More than 58,000 hectares of paddy lands were flooded in the Eastern districts alone, while 46 reservoirs reached critical spill level or failed outright following the disaster.

‘A rapid education sector assessment found that 1,682 schools were affected and more than 555,000 children were unable to attend schools. Further, 622 water supply schemes had been left non-functional and apart from that 11300 homes were damaged or destroyed. But reconstruction is happening at a very slow pace.

‘Tens of thousands of households in the hill country and in the East are still living in damaged properties and on unstable slopes drawing water from schemes that have not been restored.

‘ A Post Disaster Needs Assessment put the cost of resilience at US$ 3.4 billion but restoration work is happening at a slow pace even with foreign donor assistance.’

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WB forecast buoys bourse but weak investor participation slows momentum

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By Hiran H. Senewiratne

The CSE yesterday kicked off on a positive note due to a World Bank forecast that Sri Lanka could achieve 4.4 percent economic growth this year but later lost momentum due to weak investor participation.

Amid those developments both indices moved upwards. The All Share Price Index went up by 132 points while S and P SL20 rose by 21.02 points.

Turnover stood at Rs 1.97 billion with three crossings. Those crossings were; Lanka IOC 2.7 million shares crossed to the tune of Rs 470 million; its shares traded at Rs 127, CCS 2.7 million shares crossed to the tune of Rs 315 million; its shares sold at Rs 118 and JKH five million shares crossed for Rs 91.5 million; its shares traded at Rs 18.30.

In the retail market companies that mainly contributed to the turnover were; Commercial Credit and Finance Rs 126 million (1.3 million shares traded), Lanka IOC Rs 98 million (775,000 shares traded), Asiri Surgical Hospitals Rs 77 million (7.6 million shares traded), Commercial Bank Rs 51.3 million (307,000 shares traded), Sampath Bank Rs 46 million (325,000 shares traded), HNB Rs 37 million (98000 shares traded) and Tokyo Cement Rs 31 million (393,000 shares traded). During the day 50 million share volumes changed hands in 14547 transactions.

It is said that the petroleum sector performed well, especially Lanka IOC, while in the banking sector counters, especially Commercial Bank and Sampath Bank performed well. In the manufacturing sector, JKH impressed.

TAL Lanka Hotels announced that it has scheduled an Extraordinary General Meeting on October 29 to obtain shareholder approval for a proposed Rs 1.87 billion rights issue. The proceeds will be utilized for the repayment of bank borrowings, part refurbishment of the Taj Samudra Hotel in Colombo, settlement of vendor liabilities, and general corporate requirements.

Yesterday the rupee was quoted at Rs 330.95/331.05 to the US dollar in the spot market, weaker from Rs 330.85/95 the previous day, while bond yields were quoted broadly steady, dealers said.

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Huawei continues to showcase practical AI applications at Sri Lanka AI Week 2026

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Sri Lanka AI Week 2026 continued into its second day bringing together government, industry, academia and technology partners to explore practical applications of artificial intelligence. As the AI Technology Partner for the second consecutive year, Huawei showcased 18 use cases spanning government, education, finance, industry, green energy and everyday life, demonstrating how AI can be applied to real-world needs.

Prime Minister Dr. Harini Amarasuriya visited the Huawei exhibition together with officials from the Ministry of Education, Higher Education and Vocational Education, experiencing the Smart Classroom, AI in Education and MindGraph by Beijing Normal University demonstrations. The Smart Classroom demostration highlighted how connected technologies can bring teachers and students in different locations into a shared learning environment, while the AI in Education showcase demonstrated how AI can support teachers, enhance learning and enable more personalised education. The Prime Minister praised the efforts of the Ministry of Education, Higher Education and Vocational Education, Huawei and their partners to demonstrate practical applications of AI in education, noting the role of technology in supporting teachers, expanding learning opportunities, and advancing a more inclusive, equitable and future-ready education system.

Later in the day, Deputy Minister of Digital Economy Eng. Eranga Weeraratne, Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe, Secretary to the Ministry of Digital Economy Waruna Sri Dhanapala, and Chinese Ambassador Wei Huaxiang visited the Huawei exhibition and explored the AI Hands-On Classroom AI Empowering Industry, AI in Education and Smart Classroom demonstrations. Deputy Minister Weeraratne praised Huawei’s practical approach to showcasing AI applications, noting their relevance to Sri Lanka’s digital transformation across education, industry and skills development. The engagement also extended across the wider AI ecosystem, with industry professionals, technology partners, academics and other visitors engaging with the demonstrations and expressing appreciation for Huawei’s practical approach to applying AI across different areas of society and the economy.

Daniel Wu, CEO of Huawei Sri Lanka, said that Huawei will continue bringing global experience, technology and ecosystem resources to Sri Lanka, while working side by side with local partners to build local capabilities, develop local talent and create real value for the country. “I believe that by working together, we can make AI not only more intelligent, but also more local, more inclusive, and more meaningful for everyone,” he said.

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