Preparation of a National Industrial Policy and Strategic Plan for 2023-2027 to Foster a Globally Competitive Industrial Base

Secretary to the Ministry of Industries, Shantha Weerasinghe announced that the “National Industry Policy,” along with the five-year strategic plan for 2023-2027, has been prepared and submitted to the Department of National Planning.

This initiative aims to establish a globally competitive national industry base. By 2030, the policy aims to increase the manufacturing sector’s contribution to GDP from 16% to 20%, raise the role of entrepreneurship in the workforce from 2.8% to 7%, and boost the share of industrial exports in GDP from 14% to 20%.

Addressing the press briefing titled “Two Years of Progress and Way Forward” held at the Presidential Media Centre (PMC) today (31), the Secretary noted that the final draft for amending the Industrial Promotion Act has been submitted to the Attorney General’s Department for approval, ensuring it meets current and future needs.

The secretary to the Ministry of Industries further explained;

The Ministry of Industry has played a crucial role in reviving the country’s economy amid past economic crises. Our goals for 2030 include increasing the manufacturing sector’s contribution to GDP from 16% to 20%, raising the role of entrepreneurship in the workforce from 2.8% to 7%, and boosting industrial exports’ contribution to GDP from 14% to 20%. To achieve these objectives and build a globally competitive national industry base in Sri Lanka, a five-year strategic plan for 2023-2027 has been prepared and submitted to the Department of National Planning.

Additionally, the final bill to amend the Industrial Promotion Act has been submitted to the Attorney General’s Department for approval, ensuring it addresses both current and future needs. A Standard Operating Procedure (SOP) outlining guidelines, regulatory procedures, and the ‘Local Value Addition Theory’ for local vehicle assembly has also been introduced. Following its implementation, seventy new vehicle models and twenty-nine motor vehicle assembly plants have been approved in the country.

The Ministry of Industry has introduced a registration system for manufacturing industries, with 3,925 industries registered by June 2024. Industry registration is now available online, allowing for global access.

Under the initiative to enhance leadership and entrepreneurship in small and medium scale enterprises, the revolving fund loan scheme has allocated Rs.293.4 million for 33 projects in 2022. For 2023, Rs.1, 753 million has been provided for 176 projects through 10 institutions (banks). So far in 2024, Rs.1, 647 million has been allocated for 179 projects.

Under the environment-friendly project, the revolving fund loan scheme allocated Rs.293.4 million for 33 projects in 2022 and Rs.155 million for 7 projects through 11 participating lending institutions (banks) in 2023. So far in 2024, Rs.256 million has been provided for 15 projects.

The Valaichchenai Paper Mill, revitalized through state enterprise restructuring, has produced 3,899.37 metric tons of paper from 2022 to April 2024. Additionally, the Embilipitiya Paper Mill, under a public-private partnership, began production in April this year with the KSPA Embilipitiya Papermills (Pvt) Ltd.

Under the program for optimal utilization of mineral resources, Lanka Mineral Sands Limited adopted a new sales method and made its first sale in 2023. This approach generated USD 20.33 million from the sale of 62,150 metric tons of mineral sand and USD 14.1 million from 30,000 metric tons of zircon concentrate.

During the period 2023-2024, Lanka Phosphate Limited produced approximately 50,000 metric tons of rock phosphate, earning Rs.1, 080 million from these sales.

Additionally, gem, jewellery, and diamond exports yielded around USD 478 million in 2023, with USD 194 million contributed to the national economy by the end of June 2024. To support this, 27 booths for buying and selling gems have been established, including an export centre, a fully equipped gem laboratory, and an export centre in Demuwawatha, Ratnapura constructed at a cost of Rs.450 million.

Plans are underway to set up a cinnamon-focused processing centre within the cinnamon-related industrial park in Karandeniya. This centre will offer facilities for 100 cinnamon growers and suppliers, create value addition opportunities, and introduce their products to international markets.

In 2024, the National Gem and Jewellery Authority successfully hosted an International Gem and Jewellery Exhibition, featuring 83 booths from both local and international participants.

In 2024, the National Gem and Jewellery Authority successfully organized an International Gem and Jewellery Exhibition featuring 83 local and international booths.

To promote manufacturing industries, June 22 was designated National Industry Day, with the National Industry Exhibition scheduled to be held annually starting in 2023. The international industry exhibition in June 2024 saw participation from over 1,000 exhibitors across five industries.

Additionally, the ProFood ProPack International Trade Fair, aimed at supporting small and medium scale food producers, was successfully held in 2023. This event featured 50 local and international exhibitors, 300 booths, and attracted 25,000 visitors. Preparations are underway for the next exhibition in August 2024.

In 2023, the “Shilpa Abhimani”, the National Handicrafts Presidential Awards Ceremony, exhibition, and award ceremony honoured 508 artisans, recognizing their contributions to the handicraft industry.

Additionally, the National Enterprise Development Authority is executing the “Made in Sri Lanka” trade fair program to provide market opportunities for micro-entrepreneurs looking to start or expand their businesses. This initiative has facilitated sales opportunities for 3,439 entrepreneurs through 125 trade fairs held in 2022 and 2023.

Chairman of the Industrial Development Board (IDB) Dr. Saranga Alahapperuma, Chairman of the National Gem and Jewellery Authority Viraj De Silva, Additional Secretary (Industrial Zone and Industrial Zone Development) S.A.M.L. Gunathilake, Additional Secretary (Sectoral  Development) I.C. Pathiraja, Chairman/ Director General of the National Enterprise Development Authority K.A.L.P. Kariyapperuma, Chairman of the Sri Lanka Handicrafts Board (Laksala) Rushan Marambage, Registrar General of Companies of the Department of Registrar of Companies L.K.S. Dharmakeerthi, Chaorman of the National Craft Council Sampath Erahapola, Chairman of the National Paper Company Limited Wimal Rupasinghe were also present at the press briefing.