Sri Lanka to Revitalize 21,000+ Industries with New Government Plans

September 14, Colombo (LNW):Sri Lanka’s government is preparing to significantly boost the competitiveness of over 21,000 small and medium-sized enterprises (SMEs) nationwide. Minister of Industries and Health, Ramesh Pathirana, stressed the need for aligning with Indian industrial advancements and partnering with global entities to achieve these goals. 

This effort is part of Sri Lanka’s broader strategy to shift towards an export-focused economy, with a key emphasis on the manufacturing sector.

Pathirana highlighted the necessity for the manufacturing sector to evolve into a competitive and digital-driven industry. This transition is in line with the country’s aim to achieve zero carbon emissions and develop a green economy.

To support this shift, the government plans to provide essential resources and infrastructure to ensure local industries can compete globally.

A major component of this initiative is the creation of a new development bank, which will offer low-interest loans to industrialists, facilitating business investment and increased competitiveness. An Economic Commission will also be established to oversee these efforts.

According to a recent Department of Census and Statistics survey, Sri Lanka has 21,260 industrial establishments, with the majority being small and medium enterprises. The sector employs about 1.48 million people, underscoring its vital role in the economy.

Brahman Balaratnarajah, the newly re-elected chairman of the Industrial Association of Sri Lanka (IASL) and Deputy Managing Director of Haycarb PLC, praised the resilience of Sri Lanka’s industrial sector amid economic difficulties. 

Speaking at the IASL’s AGM, Balaratnarajah reaffirmed the association’s commitment to the government’s strategic objectives, particularly in innovation and sustainability. He encouraged the industry to adapt to global trends, focusing on technological advancements and the development of a skilled workforce, particularly targeting Generation Z.

Sri Lanka’s manufacturing sector has shown positive trends, with the Purchasing Managers’ Index (PMI) for manufacturing reaching 59.5 in July. The Central Bank noted that this growth was driven by robust performance in the textiles and apparel sectors. 

Both food and beverage production, and textiles and apparel, saw substantial improvements.

In the first quarter of 2024, Sri Lanka’s apparel industry achieved a milestone, with revenue exceeding US$1 billion. Export growth was notable, with a 7.7 percent increase in March, particularly strong in European and UK markets.