Features
Budget 2025 Industrial Zone Proposals: Challenges and Solutions
The 2025 Budget proposes significant investments in industrial zones to boost domestic chemical production and export-oriented automobile and rubber manufacturing. While the initiative is commendable, several structural and logistical challenges threaten its success.
The 2025 Budget, presented to Parliament by President Anura Kumara Dissanayake as Finance Minister, allocates funds for industrial zones targeting chemical production for domestic use and automobile and rubber manufacturing for exports.
The Budget allocated Rs 500 million for five industrial parks, planned in Kankesanthurai (KKS), Mankulam, Iranawila, Galle, and Trincomalee, plus a proposed chemical manufacturing zone in Paranthan. The last named—home to the state-owned Paranthan chemical plant since 1954—is expected to boost mineral resource value addition and supply key industrial inputs, including acids and alkalis.
Another Rs. 1,500 million is set aside for an automotive assembly and rubber products zone to enhance export competitiveness in component manufacturing. The Budget document emphasises that investing in these sectors will strengthen Sri Lanka’s position in global export markets.
The Ministry of Industry and Entrepreneurship Development stated in March that the necessary lands for these zones had already been identified, and the acquisition process was underway. However, it would take another two–three years to fully establish the new industrial zones. Despite this, they aimed to complete the required infrastructure by the end of the year.
While one should laud this plan, which at least nods a head towards industrialisation, unfortunately, several challenges stand in the way of it achieving success.
Lack of outstation industrial ecosystems
The first is that industries need to be attracted to these areas. Each zone could be expected to hold about 250 factories. At present, industrialists prefer to invest in the Western Province, the only area with a semblance of an industrial ecosystem. The other areas lack facilities, infrastructure, and supply chain elements.
Past data shows industrial estates outside Colombo take 7-11 years to reach 50% occupancy, whereas Western Province-based zones reach 100% occupancy within eight years. President Premadasa forced companies to establish garment factories in the outstations by threatening to cancel their quotas. So, it appears that strong incentives and enforcement mechanisms may be necessary.
Transport and logistics bottlenecks
Transport poses another issue, in that the distance from a harbour remains an important factor. For example, the production of sulphuric acid at Paranthan, advanced by the government. Sulphuric acid is the largest-volume industrial chemical, finding uses as the electrolyte in lead-acid batteries, in petrochemical processes – such as refining petroleum – and several other industrial and other applications. However, it is utilised primarily in the production of phosphate fertilisers like superphosphate and ammonium sulphate.
In order to produce a tonne of single super phosphate (SSP) from the rock phosphate found in the Eppawela deposit, 390 kg of sulphuric acid are required. Transporting this to Eppawela would prove very expensive. Therefore, the Government-owned Lanka Phosphate Ltd. planned to make SSP in Trincomalee, using imported sulphur. The cost of transporting sulphur from Trincomalee to Paranthan and sulphuric acid from Paranthan to Eppawela would make it uneconomical.
The advantage of Paranthan is its proximity to the Elephant Pass salt-pans, providing it with the brine the factory requires for making Chlor-alkali chemicals – crucial for Sri Lanka’s textile, rubber, and food industries, and having significant export demands. The site has no advantage for making sulphuric acid.
Transport difficulties discourage investment in rural industries. Using railways more would ease these challenges. However, the railway network in Colombo Harbour has been dismantled, increasing costs through use of intermediary container lorries. Transportation of containers by rail reduces the cost by 66-75%. In the 1980s, plans were made for containerising railway freight transport, but these plans were scrapped – to the satisfaction of container lorry mudalalis.
Mismatched Planning
The lack of holistic thinking behind these proposals presents yet another issue. For example, the case of the industrial zone proposal for Mankulam, which requires an area of 240 hectares. Going by past experience, this will house about 200 factories, giving employment to about 35,000 people.
The population in the area is insufficient to provide a labour force, so workers would have to come from outside. Where would these people be housed? A clear gap exists between the required housing and infrastructure and provision for the same. No clear plan has been made for worker housing, leading to potential slums or migration strains.
Furthermore, the land use plan for Mankulam, done by the Land Use Policy Planning Department identifies only 10 ha for industrial use, plus a further 10 ha in Panikkanulam, 5km to the North. This would be suitable for only about 16-20 factories and about 3,000 jobs.
The Budget’s plan for the Mankulam industrial zone may have been drawn up on the basis of the Urban Development Authority’s unsuitable plan for Mankulam as a regional capital, with lakhs of residents. At the time this mega-plan was drawn up, an adviser to the Ministry called it too ambitious and suggested a scaled-down plan for a 10,000-resident Mankulam new town. This would easily match 10-20 ha for industrial use.
The example of Mankulam gives an idea of the ad-hoc nature of economic planning in Sri Lanka, and the lack of theoretical knowledge regarding the process of industrialisation.
Industry does not just spring up, it develops organically with society. Industrialisation is no standalone, but a holistic process, depending on other developments in society, for example, the provision of cheap food and adequate housing and transport, for the required cheap labour. It can only develop in an industrial ecosystem, which the government must provide.
The current strategy lacks coherence, with zones being planned in isolation from local resources, labour, and logistics. For instance, while Paranthan’s strength lies in brine-based chemicals, the Budget prioritises generic chemical production, such as sulphuric acid, disregarding regional advantages.
Paranthan
The government should focus on targeted industrial zones based on local advantages. For example, Paranthan’s proximity to both the Elephant Pass salt pans and to potential renewable solar and wind energy sources (electrolysis requiring stable power) makes it ideally positioned to develop a specialised industry around brine-based chemicals. These include:
Chlorine:
A critical component in PVC production (used in plastics, pipes, and cables), water treatment (disinfection), and pharmaceuticals.
Caustic soda:
Essential for textile processing (mercerisation), soap and detergent manufacturing, paper production, and aluminium refining via the Bayer process.
Hydrogen:
Used in ammonia production for fertilisers, petroleum refining, and as a potential clean fuel source.
Hydrochloric Acid:
Vital for steel pickling (rust removal), food processing (pH regulation, gelatine production), and chemical synthesis (e.g. vinyl chloride for PVC).
Sodium Carbonate and Bicarbonate:
Key inputs for glass manufacturing, detergents, and food preservation (baking soda).
Bleach (Sodium Hypochlorite):
Widely used in water purification, textile bleaching, and household disinfectants.
Additionally, there are some high-value derivatives such as Chlorinated Paraffin (lubricants and plasticisers), Chlorinated Solvents (dry cleaning and industrial degreasing), Zinc Chloride (essential for battery electrolytes, metal soldering fluxes, and wood preservation), and Calcium Chloride (food preservation and as a concrete accelerator).
Solutions
By focusing on these brine-derived chemicals, Paranthan can put to use its natural resource advantage to establish a competitive, high-value industrial cluster, avoiding the inefficiencies of generic chemical production.
In the same way, Trincomalee could exploit its natural harbour and its proximity to Eppawela to avoid costly inland transport and develop industries based on sulphuric acid and rock phosphate processing.
The government should also look to revive rail freight, for example to reduce logistics costs for bulk chemicals. It needs to rebuild port-rail links for container transport, and to offer subsidised rail rates for industries in the new zones.
Additionally, the success of these zones depends on strong incentives for outstation investment, such as tax holidays, utility subsidies and export rebates. Incentives should be linked to employment generation.
Furthermore, these zones require integrated urban-industrial planning for sustainability. A phased approach should be adopted: starting with pilot projects in smaller areas, say 10-20 ha, and expanding as demand grows. Before expanding the zones, the government should ensure adequate, affordable housing for workers (preferably within walking distance), public transport links (especially by bus and rail) to nearby towns. For a constant supply of skilled labour, vocational training facilities should be provided. In essence, this would be the basis for a series of industry-based new towns, which could absorb expanding urban population without leading to crowding.
To summarise, the 2025 Budget’s industrial zone plans have potential but suffer from disjointed planning, transport inefficiencies, and unrealistic scaling. Success requires:
Localised, resource-based industrialisation (not one-size-fits-all).
Logistics reform (rail freight revival).
Stronger incentives to attract investors.
Phased expansion, starting at a small scale.
Integrated urban-industrial development.
Without these fixes, Sri Lanka risks underutilised zones, wasted funds, and missed export opportunities.
(Vinod Moonesinghe read mechanical engineering at the University of Westminster, and worked in Sri Lanka in the tea machinery, motor spares, and railway industries. He later turned to journalism and history. He served as chair of the Board of Governors of the Ceylon German Technical Training Institute. He is a convenor of the Asia Progress Forum, which can be contacted at asiaprogressforum@gmail.com.)
By Vinod Moonesinghe
Features
Proactive peacemaking becomes a paramount need
It may be some time before the full impact of food inflation is felt in the West. Until such time the world would continue to keep itself in suspense over whether the Trump administration is in earnest when it seeks to convey the impression that it is backing a negotiated solution in West Asia.
As is usually the case, consumer stress would be one of the final determinants of political change. To the degree to which the average US consumer somehow ‘muddles through’ and puts the food on the table, to the same extent would the Republican sections of the US public in particular be tolerant of the Trump administration’s inconsistent handling of the West Asian war and the main issues stemming from it. That is, there would be no grave popular disaffection and a demand for political change in the short term.
However, the indications are that the Trump administration’s support base is suffering some erosion in the wake of the current economic crisis. While reports indicate that Democratic sections are firming-up their opposition to the political centre, Republican support for Trump is also showing signs of waning, we are given to understand.
The above developments are probably why Trump is on record as having given Israeli Prime Minister Benjamin Netanyahu a ‘dressing down’ recently on his seeming intransigence on the question of giving negotiations a chance in West Asia. The show of displeasure could be really aimed by Trump at containing the impatience of the American public.
However, the current ground situation in the Middle East, particularly the uncontained bloodshed, is likely to impress on the thinking sections of the world that more than temporary political change is needed in West Asia and the US.
A well thought out political solution that addresses all the contentious issues at the heart of the Middle East conflict is what enlightened opinion would demand, and very rightly. Right now, the ‘peace efforts’ initiated by the Trump administration give the impression of being piecemeal solutions at best.
There have been, of course, numerous initiatives in the past aimed at bringing permanent peace to the Middle East. These failed mainly because they did not address in full the root causes of the conflict.
At bottom the Middle East conflict is mainly about race and religious hate bred by socio-economic and material inequalities. For instance, if the Palestinian people were not displaced and deprived of land occupied by them at the time of the founding of the Israeli state, ethnic enmities would not have grown to the current unmanageable proportions.
When addressing the above questions, though, it must be remembered that the Israelis too were a displaced people who were entitled to land and a state of their own in the Middle East. Basically, out of these seemingly irreconcilable and conflicting demands have grown the Middle East imbroglio.
Middle East peace is considerably about reconciling these demands and arriving at a solution that would ensure the creation of two states that would opt for peaceful co-existence thereafter.
As long as the US does not see the need for a non-partisan solution that addresses the needs of both ethnicities and religions and goes all-out, as it were, to have it implemented, the Middle East would continue to bleed.
However, staunching the blood flow through the creation of two states would be only half the job done, though a very important part of it. More pernicious, pervasive and difficult to remedy are the inter-ethnic and inter-religious hatreds that have been unleashed over the decades.
However, if substantial, long-lasting peace is to be fostered in the region the latter ‘demons’ would need to be exorcised from the hearts and minds of the communities concerned. No doubt an uphill task but one that must be undertaken by those who wish the region well.
The UN would need to put its ‘best foot forward’ in such undertakings but it is time that it dawned on the international community and other caring quarters that Middle East peace, and all other such uphill challenges, require proactive peacemaking on the part of all civilized sections for their effective management. That is, public involvement in peacemaking too is a must.
Since hatreds are harboured in the human consciousness the enmities embedded in the latter need to be managed and defused judiciously alongside other undertakings in a peace process. In the case of West Asia, such enmities could be even spread globe-wide besides being multi-dimensional. For instance, it ought to be thought-provoking that Iran is insistent on a peace initiative that would also include Lebanon.
Besides security considerations it is also ethnic and religious affiliations that account for Iran making this demand. For instance, the Shias are a numerically important religious community in Lebanon and they provide a significant number of Hizbollah fighters, who are in a vital sense carrying out a ‘proxy war’ for Iran. It also needs to be factored in that Iran is a Shia-majority country.
Thus trans-border religious affiliations could add to the complexities and enormity of ethno-religious conflicts. However, the task of managing centuries-long enmities needs to be launched and prodded on with by peacemakers since a downing of arms alone would not guarantee substantive peace.
It is not realized sufficiently that the process of ending hatreds begins with mutual apologies by antagonists to a conflict for the harm inflicted on each other. This would be anathema in some ears but there is no getting away from the requirement. It is the vital first step to permanent peace anywhere.
In fact there could be no reconciliation worth speaking of without such mutual apologies. It is a point worth re-iterating in these times when even the government of Sri Lanka is voicing the need for national reconciliation. Well, without the words, ‘I am sorry’, there could be no permanent end to enmities – they would do well to remember.
The above requirements may not go down very well with governments, but they resonate in the hearts and minds of most people, since they are inheritors of religious traditions of some kind.
This is a principal reason why peacemaking works well when publics too are involved in them. The effectiveness of such campaigns increases several fold when they have a Mahatma Gandhi or a Jawaharlal Nehru at their helm. A strong proactive involvement by the public in peace could lead to the emergence of such leaders at some point in these campaigns.
Features
Dialog Brings Sri Lanka’s Largest Digital Vesak Experience to Matara
Official Digital Partner of the 2026 ‘Dakshina Prabha’ National Vesak Zone
Dialog Axiata PLC, Sri Lanka’s #1 connectivity provider, collaborated with the Ministry of Buddha Sasana, Religious and Cultural Affairs to bring one of Sri Lanka’s largest and most technologically advanced Vesak experiences to the ‘Dakshina Prabha’ National Vesak Zone. The three-day celebration, in Matara attracted more than hundred thousand visitors, who engaged with a series of innovative digital activities powered by Dialog 5G Ultra, including Artificial Intelligence (AI) and Virtual Reality (VR) experiences, digital pandols and a Data Dansala. The opening ceremony was attended by Hon. Sunil Handunnetti, Minister of Industry and Entrepreneurship Development and Hon. Saroja Savithri Paulraj, Minister of Women and Child Affairs, along with distinguished guests and Dialog’s senior management.
One of the key attractions at the venue was the Dialog 5G Ultra-powered Virtual Reality (VR) experience, which attracted more than 35,000 participants. The activation enabled devotees to virtually visit and pay homage to sacred Buddhist sites, including the Jaya Sri Maha Bodhi in India and the Atamasthana in Anuradhapura, directly from the Vesak zone in Matara.

Visitors receive complimentary mobile data through Dialog’s QR-powered Data Dansala.
Dialog also conducted an AI Digital Vesak Greeting Card Competition from 21 May to 01 June 2026, attracting numerous entries from across the country. The shortlisted designs were showcased across 20 large LED screens throughout the venue and across Matara City, and were also made available for download via mobile devices. Further, through the use of AI, traditional Jathaka Katha were reimagined in a digital format, demonstrating how technology can be used to preserve and enhance cultural and religious heritage. Together, these initiatives blended traditional Vesak celebrations with emerging technologies, offering visitors a unique and immersive way to engage with Vesak traditions.
Extending the spirit of Vesak through connectivity, Dialog conducted a special Data Dansala powered by its QR Reload platform, enabling visitors to receive complimentary mobile data by scanning QR codes placed across the venue. In addition to the Matara National Vesak Zone, similar Data Dansala activations were also conducted at the Gangaramaya and Bauddhaloka Vesak zones in Colombo.Visitors also had the opportunity to create personalised Vesak-themed digital photos through an AI Photo Booth, generating AI-enhanced portraits using their own photographs and adding a contemporary digital element to the Vesak celebrations.

Visitors watch AI-generated Jathaka Katha
Commenting on the initiative, Hon. Sunil Handunnetti, Minister of Industry and Entrepreneurship Development, said, “The 2026 Dakshina Prabha Vesak Festival marked the first time AI-powered digital innovations were incorporated into a National Vesak Festival in Sri Lanka. Presenting Buddhist stories and teachings through technology created a new and engaging way for visitors to connect with these traditions. We thank Dialog for supporting this initiative and for working closely with us to bring our vision to life. Their contribution played an important role in making this first-of-its-kind event a reality.”
Lasantha Theverapperuma, Group Chief Marketing Officer of Dialog Axiata PLC said, “We thank the Government of Sri Lanka for the opportunity to support the 2026 Dakshina Prabha National Vesak Festival and for embracing technology as part of this year’s celebrations. As the Official Digital Partner, we were privileged to contribute through our Dialog 5G Ultra and AI capabilities, creating new ways for visitors to engage with Vesak traditions while preserving their cultural significance for future generations.”
Beyond supporting the National Vesak Zone in Matara, Dialog also enhanced the Gangaramaya and Bauddhaloka Vesak zones through a range of digital activations during the Vesak season. The company additionally continued its sustainability initiatives, including the Thirasara Aloka Poojawa, which illuminated rural places of worship through solar-powered lighting solutions.
Features
Beauty, elegance and talent…for women
Universal Woman is an international pageant focused on “beauty, elegance, and talent” for women, positioning itself as a platform to shape global ambassadors. The 2026 edition will be held in Cambodia, and Sri Lanka will be there, as well.
According to reports coming my way, contestants, at the international event, will work with industry trailblazers, under international standards.
Sri Lankan supermodel, runway and pageant trainer Chulpadmendra Kumarapathirana, is the National Director for Universal Woman Sri Lanka 2026.
With over two decades in the industry, Chula was crowned Miss Sri Lanka 2006, and has since shaped the next generation of titleholders through her Colombo-based Chulpadmendra Catwalk Studio, widely regarded as one of the country’s leading modelling academies.

The team behind Universal Woman Sri Lanka 2026
A former host of Derana Miss Sri Lanka for Miss World 2008 and a judge for Miss Universe Sri Lanka 2025, Chula now serves as National Director for Universal Woman Sri Lanka 2026, leading the franchise’s search for Sri Lanka’s delegate to the international final in Cambodia.
Applications for Universal Woman Sri Lanka 2026 are being taken, via WhatsApp: 077 659 4994, says Chula.
The judging panel for Universal Woman Sri Lanka 2026 includes Senaka De Silva, Pageant Aesthetic Advisor & Chairperson of the Judging Panel, Angela Seneviratne, Caroline Jurie, Rozelle Plunkett, and Suraj Mapa.
Universal Woman Sri Lanka 2026 officially began its journey with a first round of auditions, held in Colombo, marking the start of an exciting new chapter in Sri Lanka’s pageant industry.

Launching the first round of auditions
The platform aims to empower women while selecting an intelligent, confident, and inspiring representative to compete at the Universal Woman International Pageant 2026 in Cambodia, this September.
Universal Woman Sri Lanka now moves forward with the vision of creating one of the country’s most prestigious and empowering pageants while preparing to crown a queen who will proudly represent Sri Lanka on the international stage.
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