ECONOMYNEXT – Sri Lanka will set up a new industrial zone in an area spanning the Gampaha and Kegalle districts with dozens of industrialists asking for land, the state information office said.
About 150 investors interested in starting businesses in the Western province have applied for land, but there was no space in 8 existing industrial zones.
The new industrial zone will cover both the Gampaha and Kegalle districts. It will be sited on Pethiyakanda Watta, a 194 acres of land with the state Land Reform Commission.
The LRC has large tracks of land expropriated from private citizens by the state after independence from British rule, which critics say is a key reason for the country’s weak growth.
Expropriation is part of what economists call ‘regime uncertainty’ which also includes abrupt policy reversals and regulations.
A ‘Green Industrial City’ will be set up in the 194 acre land.
The cabinet of ministers had approved a joint proposal by the ministries of Land and Industries to set up a ‘Green Industrial City’
It will be open for assembly of electronic components, packaging material, value added agricultural products, rubber and plastic, apparels and pharmaceuticals.
There were 32 industrial parks under the Ministry of Industries. Private businesses have invested 36.5 billion rupees in them and the state has invested 4.5 billion rupees for infrastructure. (Colombo/Sept17/2020)