Sri Lanka is set to enhance its industrial regulatory framework by merging three key state agencies into a single entity, as announced by the Minister of Industry and Entrepreneurship Development, Sunil Handunnetti.
“We have identified three primary agencies required for industrial activities. We are working to integrate them and streamline operations to make work much easier,” Handunnetti informed the parliament. He further explained that a new organization, the Sri Lanka Industrial Transformation and Innovation Authority (SITIA), will be established to replace the existing agencies.
The new authority will incorporate the Industrial Development Board (IDB), the National Enterprise Development Authority (NEDA), and the Small Business Development Division. “We obtained Cabinet approval for this initiative in January. We are now in the final stages of drafting the Act to eliminate duplication of work, making it easier for entrepreneurs to navigate the system,” Handunnetti added.
The minister also revealed plans to establish 33 industrial zones across the country. “A new 20-acre industrial zone is being developed within the Suriyawewa park in Hambantota, and it is now in the final stages,” he said. In Gampaha, the Aluthapola industrial zone is ready for handover to investors. Additionally, work has begun on a specialized chemical production zone in Paranthan and a leather-centric park in Valachchenai, Batticaloa.
To attract long-term capital, the government is offering 35-year leases on land within these zones, with pricing based on state valuations. “Even in areas where we haven’t fully completed the infrastructure, such as the 50-acre Nochchiyagama site or the 9.25-acre park in Wellawaya, we are ready to provide land to suitable investors,” Handunnetti stated.
(Colombo/Mar7/2026)
