Business
Only 0. 04% of SL’s land parcel allocated for Industrial Zones: Minister
‘Productivity of land utilized for agriculture and plantations very low’
by Sanath Nanayakkare
Industrial Zones that account for 30% of local GDP have received only 0.04 % of the country’s land parcel, while millions of hectares of land utilized by the traditional agriculture and plantation sectors account for only 8% of the GDP because the two industries are lagging behind in their value- addition processes, Minister of Plantation Industries and Minister of Industries Dr. Ramesh Pathirana said on Monday.
Pathirana made these remarks while presenting the keynote speech at Nebada Sadaharitha Estate in the Kalutara district, where the Sadaharitha Group, a leader in the Sri Lankan green commercial forestry sector, marked its 21st anniversary.
Speaking further the Minister said:
“Our plantations industry dates back to more than a century and our agriculture industry is even more ancient. Approximately 4 million of our people directly depend on agriculture. In the past 75 years, we have benefited from these two sectors. A good example for this is in 1952, Sri Lanka and China entered into a rubber-rice pact when the country had to face a shortage of rice and China wanted rubber from Sri Lanka. In 1952, Sri Lanka’s population was 6.3 million. Today the population has increased to about 22 million and enough rice is produced for the nation without an issue.
This is because of the substantial investments we have made in water reservoirs, irrigation systems, seeds distribution and fertilizer subsidies. Tea and rubber also get re-planting subsidies. Cinnamon growers get plants for free. However, the country’s agriculture sector accounts for only 8% of the GDP. So, although millions of hectares of the nation’s land are utilized by the agricultural and plantations industries, there is a clear lack of productivity generated by the nation’s land resource by the traditional agriculture sector. This difference becomes clear to us when we work with the agricultural sector and the industrial sector. There is as little as 0.04% of land allocated for industrial zones of the country and they account for 30% of the GDP.”
“During the recent economic crisis, we realized that although the agriculture industry is good and the plantations industry is also good, they are more prone to dependency and their export-oriented value addition processes are on a back-foot relative to other countries in the world.”
“Our commercial tea industry is as old as 150 years since James Taylor, the Scottish planter, who discovered Sri Lanka had great potential for tea. Ceylon tea brand still fetches the best price in the world vis a vis Kenya and India. But our value addition and brand building fronts are in a very backward position. Our value addition is 40% including the production of 5-kilo bags which is also considered as a value addition.
Traditional tea exporters are not willing to shift from their models. They have historically exported tea to Turkey, Iran, Iraq, Lybia, Syria etc. The trade volume accounts for USD 1.2 billion. We need to be thankful to them for their hard work. In terms of rubber, we have become a centre for producing rigid tyre which generates an income of USD 1 billion. But the productivity in our rubber plantations has declined as tappers tend to exit the industry because of weather conditions.
On the coconut front, there is an increasingly favourable situation for Sri Lanka because there is increasing global demand for coconut and allied products. In 2022, we were able to record an income of USD 836 million from coconut exports. I believe that we will be able to earn USD 2 billion from the coconut and allied product exports in 5 to 7 years. Last year, cinnamon industry earned us USD 300 million. But, with Sri Lanka receiving its first ever Geographical Indication (GI) certification for Ceylon Cinnamon, we shall be able to expand our cinnamon exports in the future.”
“In this context, we need to draw our attention towards other commercial crops which have a demand in the global market including the Agarwood cultivation which Sadaharitha has developed a notable footprint across Sri Lanka in cultivation and has also secured a place for their products in the export market. Further, we have instructed the EDB to promote our coffee exports as global coffee sales volume is as five times as tea. The Malaysian Ambassador in Sri Lanka recently drew my attention to commercial cultivation of Durian fruit and we are looking at the possibility of growing it in rubber plantations where rubber trees are sparse. Further, we are looking at the possibility of expanding our export of fresh fruits to the EU, Australia and New Zealand in addition to the Maldives and the Middle East. For this, we are now in the process of earning international certifications to enter those markets.”
Business
SIA warns of 1,000 SME collapses, urges fair policies to protect Sri Lanka’s rooftop solar sector
By Sanath Nanayakkare
The Solar Industries Association (SIA), representing over 1,000 companies and employing 40,000 workers in Sri Lanka’s rooftop solar sector, issued a stern warning recently regarding threats to the industry’s survival and the nation’s renewable energy ambitions. The association condemned recent regulatory instability and called for urgent policy reforms to avert economic and social crises.
The SIA categorically rejected the Ceylon Electricity Board’s (CEB) claim that rooftop solar installations caused the recent island-wide power outage, calling the accusation “baseless and misleading.”
“Public trust is eroded when accountability is misdirected,” the SIA stated. “We demand an independent, transparent investigation led by experts appointed by the Ministry or the Public Utilities Commission (PUCSL). The CEB’s unilateral statements disregard the sector’s contributions and jeopardize Sri Lanka’s renewable energy transition,” they said.
“While acknowledging the formation of a tariff determination committee, the SIA criticized its narrow focus on financial parameters, ignoring the sector’s socioeconomic value. Rooftop solar empowers businesses and households with energy independence, reduces grid strain, and supports climate goals. However, proposed volatile tariff structures risk destabilizing over 100,000 installations—primarily owned by middle-class families—and deter future investment,” they noted.
“A rigid, equation-based tariff system is unsustainable,” the association warned. “Sri Lanka needs a stable policy framework to attract long-term investments. For instance, retirees could invest EPF savings into solar projects, securing income while advancing national energy targets. Without urgent action, 1,000 SMEs and 40,000 jobs face collapse, with dire consequences for employment, energy security, and economic stability,” they pointed out.
SIA urged policymakers to establish an independent committee to investigate the power outage fairly, expand the tariff committee’s mandate to include socioeconomic and environmental benefits and implement predictable policies to safeguard SMEs, households, and investor confidence.
“Sri Lanka stands at a crossroads,” the SIA emphasized. “Protecting rooftop solar isn’t just about energy—it’s about livelihoods, economic resilience, and a sustainable future. We urge stakeholders to collaborate on solutions that prioritize both people and progress,: they emphasized.
Starting its promotional work for 2025, Sri Lanka Tourism Promotion Bureau (SLTPB) added another feather into its cap of endorsements, by being recognized as the most innovative Tourism Board promotion in Outbound Travel Mart (OTM) . In parallel to that, several other sub events were held. The OTM was held in Jio World Convention Centre, Mumbai—India, from 30th January to 01st February 2025.Before OTM, the Global Village – Global Exchange & Trade Exhibition was held at the Surat International Exhibition & Convention Centre , Sarsana, Surat (Gujarat – India , from 25th to 27th January 2025. This travel fair was organized by Southern Gujarat Chamber of Commerce and Industry (SGCCI).
Sri Lanka participated in both OTM and South Asia’s Travel & Tourism Exchange (SATTE), held from 19th – 21st Feb 2025, in New Delhi, India . This was an excellent opportunity for Sri Lanka to promote it’s potential as a unique travel destination, especially for the Indian counterparts, as SLTPB has identified India as the number one source market for Sri Lanka, tourism bringing the largest number of tourist arrivals to the destination.
SLT-MOBITEL has entered into a strategic partnership with Rush Lanka Group to provide exclusive SLT-MOBITEL Fibre connectivity solutions to their portfolio of luxury apartment developments in Colombo and the suburbs, enhancing the digital experience of all residents.
The agreement was signed between Imantha Wijekoon, Chief Business Officer of Consumer Business at SLT, and Zaid Ariff, Director of Construction at the Rush Group headquarters. Representatives from both companies also attended the ceremony.
Under the partnership, SLT-MOBITEL will serve as the exclusive digital service provider for five prestigious Rush Lanka developments including Street Rush Residencies and Rush Court 4 in Mt. Lavinia, Rush Tower 2, Rush Metropolis in Dehiwala, and Rush Court 5 in Colombo 14. The collaboration ensures residents will enjoy superior fibre connectivity speeds, enabling seamless digital experiences in modern smart homes. The partnership with the Rush Lanka Group aligns with SLT-MOBITEL’s commitment to offer ultra-fast, reliable connectivity solutions to residential developments. Delivering exclusive fibre connectivity to luxury apartments, SLT-MOBITEL ensures residents have access to world-class digital services that complement the living experience promised by Rush Lanka Group.
Powered by advanced fibre technology, SLT-MOBITEL network will provide the residences with seamless performance across digital activities. The SLT-MOBITEL Fibre backbone ensures lag-free experiences whether tenants are gaming online, attending virtual classes, working remotely, or streaming high-definition entertainment. SLT-MOBITEL Fibre will transform the lifestyles of all apartment users bringing greater convenience and superior quality of life.
Rush Lanka Group, established in 1992, is a property developer specializing in luxury and semi-luxury apartments.
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