August 23, Colombo (LNW): Sri Lanka is advancing plans to create a major logistics hub focused on heavy industries, with the goal of attracting investments up to $1.5 billion, according to State Minister of Investment Promotion, Dilum Amunugama.
The 600-acre industrial zone in Kappalthurai, Trincomalee, is set to become a key site connecting sea, air, and rail transport, making it the second such hub in Sri Lanka after the Hambantota investment zone.
Amunugama emphasized that the Trincomalee hub will be particularly attractive for heavy industries due to its strategic location and multi-modal transport connectivity. Discussions between Sri Lanka’s President Ranil Wickremesinghe and Indian Prime Minister Narendra Modi last year also focused on developing Trincomalee as an energy hub, a long-standing interest of India dating back to the late 1970s.
Trincomalee is known for its rich mineral resources, including ilmenite and rutile, among others, which has heightened its strategic importance. Despite past geopolitical concerns over Chinese-funded projects in Sri Lanka, Amunugama assured that the government intends to treat all investors fairly, avoiding geopolitical conflicts in this new investment zone.
The Sri Lanka Ports Authority (SLPA) Chairman, Keith D. Bernard, noted strong investor interest in the industrial zone, which will be developed in collaboration with the Board of Investment (BOI).
Companies involved in fertilizer production, solar products, and other industrial sectors have already expressed interest. There are also plans to redevelop Trincomalee Port into an industrial port, with a master plan in place to guide this transformation.
Additionally, the Ceylon-Italy Blue Economy Association (CIBEA) is working on a project to introduce green hydrogen and e-fuel bunkering in the Indian Ocean, positioning Trincomalee as a global leader in sustainable maritime fuel transportation. This initiative involves collaboration with the Sri Lanka Ports Authority and universities in both Italy and Sri Lanka.
The Sri Lankan government has also approved Singapore’s Surbana Jurong to develop a tourism corridor from Verugal Aru to Arugam Bay, further solidifying Trincomalee’s role as a dynamic economic hub.
State Minister for Investment Promotion, Dilum Amunugama, announced that Sri Lanka has secured an export income of USD 9 billion in the first six months of this year.
He also highlighted that investment agreements totaling approximately USD 800 million have been signed during the same period.
The state minister further elaborated, that the Board of Investment of Sri Lanka currently facilitates 15 investment zones, with 1,575 companies operating within them, providing employment to over 500,000 people.
Under the government’s new investment program, seven additional investment zones are planned for areas including Mankulam, Paranthan, Kankasanthurai, Trincomalee, Iranawila, Hambantota, and Bingiriya.
