Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe has outlined an ambitious roadmap to transform Sri Lanka’s economy from post-crisis stabilisation towards a globally competitive, export-oriented industrial sector. He shared the vision at the CNCI Achiever Awards 2026, held in Colombo on Thursday, October 15.
Addressing industry leaders, manufacturers and representatives of small and medium-sized enterprises (SMEs), the Deputy Minister emphasised that restoring economic stability following the country’s major economic crises must serve as a foundation for sustained industrial growth. The broader objective, he said, is to develop a resilient, high-productivity industrial base capable of competing in international markets beyond the limitations of domestic demand.
Reflecting on the structural challenges surrounding the country’s economic trajectory, including the sovereign default in 2022, Abeysinghe noted that difficult reforms had been necessary to restore fiscal discipline and external stability. However, he stressed that the focus must now shift from recovery towards strategic expansion and long-term economic transformation.
The 2027 Budget is expected to support this transition through planned capital expenditure of approximately Rs. 2 trillion. The proposed investments will prioritise the modernisation of transport networks, ports, airports and energy infrastructure, with the aim of reducing logistics and production costs while improving the competitiveness of Sri Lankan manufacturers.
Highlighting manufacturing as a central driver of national development, the Deputy Minister underscored the importance of integrating local businesses into global value chains. The government is also working to rationalise the country’s tariff structure, including the gradual removal of para-tariffs such as the Cess and the Ports and Airports Development Levy (PAL), to facilitate easier access to imported raw materials and intermediate goods required by industry.
At the same time, he emphasised that trade liberalisation must be accompanied by effective safeguards for domestic manufacturers. Measures to address unfair trade practices, strengthen national quality infrastructure and introduce anti-dumping protections are considered essential to ensuring fair competition. Actions taken by Sri Lanka’s domestic tile industry were cited as an example of efforts to address such challenges.
Access to finance remains another key priority for businesses seeking to expand operations and improve productivity. To address this, the government has allocated Rs. 95 billion in concessional financing for 2026, including support through the RE-MSME PLUS initiative. The National Credit Guarantee Institution is also expected to help eligible enterprises access financing by easing collateral requirements. Further options under consideration include equity financing and improved access to capital through the Colombo Stock Exchange.
The government is also working to reduce administrative barriers that hinder business growth. Through the SME Nexus initiative, it aims to simplify business registration procedures, targeting a process requiring just two documents and two days for business-name registration by the end of 2026.
In parallel, efforts are underway to expand industrial infrastructure, with more than 400 acres of land newly identified in the Western Province for potential industrial park development.
SLPA Plans New Logistics Hub to Strengthen Colombo Port’s Regional Trade Position
The Sri Lanka Ports Authority (SLPA) has decided to pursue the development of a new logistics hub within the Port of Colombo through a Public–Private Partnership (PPP), following the decision by shareholders to discontinue a previously proposed joint venture involving China Merchants Port Holdings Company Limited, through its wholly owned subsidiary, and Access Engineering PLC.
The earlier initiative was intended to establish a modern logistics facility through a joint venture company named South Asia Commercial and Logistics Hub (SACLH).
Established in 2023, SACLH comprised three shareholders: China Merchants Port Holdings Company Limited, through its wholly owned subsidiary, with a 70% equity stake, and the SLPA and Access Engineering PLC, each holding a 15% stake.
The proposed project envisaged an investment of approximately US$280 million and a planned floor capacity of around 150,000 square metres. It was designed to expand the Port of Colombo’s logistics capabilities and strengthen its position as a major regional maritime and logistics centre.
However, after considering prevailing external conditions, commercial factors and the interests of the respective shareholders, the parties decided not to proceed with the proposed joint venture.
Under the agreed arrangements, the three shareholders will receive refunds of their respective equity contributions, subject to applicable regulatory requirements and operational expenses. SACLH is expected to distribute approximately US$29.8 million among the shareholders in proportion to their respective equity stakes.
Despite the discontinuation of the original joint venture, the SLPA remains committed to expanding modern logistics infrastructure within the Port of Colombo. The proposed PPP approach is intended to support the development of facilities that respond to the evolving needs of international maritime trade and global supply chains.
The new initiative reflects the SLPA’s continued focus on strengthening Colombo Port’s logistics capacity and reinforcing its role as a key regional gateway for international commerce.
Sri Lanka Shifts Focus from Economic Stabilisation to Industrial Transformation and Global Export Growth
