By: Staff Writer
April 17, Colombo (LNW): The Sri Lanka Board of Investment’s (BOI) ambitious plans to establish three new investment zones in the Northern Province — Paranthan, Mankulam, and Kankesanthurai — have sparked both optimism and concern. While the project is touted as a significant economic opportunity for a historically underserved region, questions remain about the environmental implications and the feasibility of sustainable development in areas with a history of industrial pollution.
At the center of the proposal are two sites previously associated with heavy industry: the chemical manufacturing plant in Paranthan and the old cement factory in Kankesanthurai. These abandoned facilities, relics of an industrial past, are being repositioned as hubs for eco-friendly, green investment.
However, local environmental advocates and experts are warning that past contamination at these sites could pose significant health and ecological risks if not thoroughly addressed before development resumes.
Despite these concerns, BOI Chairman Arjuna Herath, during his first visit to the Northern Province in this capacity, expressed confidence in fast-tracking the zones’ infrastructure development. At a high-level meeting held at the Governor’s Office in Jaffna, Herath urged government institutions to accelerate essential groundwork so that investors can begin construction by the third quarter of this year.
According to BOI estimates, the three zones are projected to generate around 16,000 direct and 50,000 indirect jobs. The initiative is also expected to support youth development through technology transfer and upskilling programs. Furthermore, Herath highlighted the BOI’s commitment to developing these zones in alignment with international environmental standards, branding them as “green investment zones.”
However, the feasibility of this eco-friendly branding remains uncertain. Critics argue that the transformation of previously contaminated industrial zones into green spaces will require significant investment in environmental assessments, cleanup efforts, and ongoing regulation. The risk of simply repackaging environmentally hazardous sites under a green label is a growing concern, especially as foreign investors may be drawn to the region’s low operating costs without adequate environmental safeguards.
Infrastructure remains both a challenge and an opportunity. Kankesanthurai’s zone is strategically positioned with access to air, sea, and rail, offering multimodal transport potential for investors. The other two zones, in Paranthan and Mankulam, are also expected to appeal to a diverse range of industries, enhancing the region’s economic appeal.
Stakeholder enthusiasm remains high. The meeting was attended by the Governor of the Northern Province, district secretaries from Jaffna, Kilinochchi, Mullaitivu, and Mannar, as well as senior officials from national infrastructure and environmental agencies. The BOI’s inclusive approach suggests a serious intent to coordinate across departments — a crucial factor if the zones are to succeed.
In conclusion, while the proposed investment zones in the Northern Province present a viable path for economic revitalization and regional inclusion, the plan’s success hinges on a transparent and scientifically sound environmental strategy. Without it, Sri Lanka risks turning promising development zones into repeat examples of unsustainable industrialization.
