IDB urges new initiatives to boost industrial sector, says all estates full to capacity
Total land allocation for industrial estates less than 0.5%
Requests: Land acquiring power to create more industrial zones
Despite having high FOREX generating capabilities, the Sri Lankan industries sector is yet to receive its due recognism from the government, lamented Chairman of Industrial Development Board of Ceylon (IDB), Dr. Saranga Alahapperuma. (PICTURED)
He said that firstly the total land allocation for industrial estates are less than 0.5% and due to this all the industrial estates are now full to capacity. “Hence we cannot invite new industrialists to set up business in the industrial estates.”
Land allocation for paddy is 2,760,000 acres, coconut 1,096,000, tea 548,000 and rubber 315,000. Sri Lanka’s total forest

Sri Lankan exports compared to some other countries
allocation is 4,777,000 acres and currently the industrial sector only has 4,802 acres. The industry needs to have more than “1%” of total land allocation which would be around 160,000 acres. With this additional land there are several industries who will invest in businesses which in turn will help to increase industrial export output and help to create new employment opportunities.”
A solution to this is to grant IDB the acquiring power of government lands empowered by the act to create more industrial zones. He also identified key obstacles in industrial development which include the need of a new licensing system where deregulation of laws is a must. “A new digitalization process too should be introduced.”
Industrialists also need easy access to more funds and for this a ‘Proposal Based and Low Interest Finance Scheme must be introduced. A “Industry Development Fund” – to support the micro, small and medium enterprise sectors with a special loan facility at an annual interest rate of 6% with less paperwork and collateral too should be launched soon.
“A Digitalized Industrial Land Bank too is a need of the hour. For several decades policies and taxes keep on changing and to overcome this consistent National Industrial Policy is needed.”
New educational methods are also needed to increase the entrepreneurial capacity of youth who will be future industrialists. Dr.Alahapperuma said that steps should be taken to improve the “Ease of Doing Business” index rank of Sri Lanka from the present 99 position to below 50.
“We should also work towards improving the entrepreneurship ratio from the current 2.8% to 10% and in improving the manufacturing share of the GDP from 15% to 25%. Another area to look to is to improve the per capita export up to 50% of the global average. “
The Chairman also said that a lot of irregularities happened at customs and to overcome this scanning facility should be improved.
Illegal exportation of iron scrap has increased and he suggested to implement the Cabinet decision which said stated that the IDB should facilitate acquiring scrap metal from CEB and other government institutes.
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