‘Allocation of land for new industry can take more than four years’

Parliament examines Industry and Entrepreneurship Development Ministry

For want of an efficient system, the allocation of land for a new industry could take more than four years, the Sectoral Oversight Committee (SOC) on Economic Development and International Relations was told recently.

A statement issued by Parliament has quoted the Secretary to the Ministry of Industry and Entrepreneurship Development as having explained the difficulties experienced in allocation of land in terms of the existing procedures. The process could take more than four years, the official has said, adding that allocation of 3% of a country’s land area was in line with international concepts, however land allocated for industries in Sri Lanka stands so far at only 0.01%,

This transpired at a recent SOC meeting, chaired by Attorney-at-Law Ms. Lakmali Hemachandra, MP. According to the statement received from Parliament, the SOC has reviewed the performance of the Ministry of Industry and Entrepreneurship Development and the performance of the five institutions under it.

Minister of Industry and Entrepreneurship Development Sunil Handunnetti and Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe also participated in the Committee meeting.

Accordingly, the performance reports of the Ministry of Industry and Entrepreneurship Development for the years 2023 and 2024, the annual reports of the National Gem and Jewellery Authority for the years 2022 and 2023, the annual report of the Gem and Jewellery Research and Training Institute for the year 2023, the annual reports of the Sri Lanka Export Development Board for the years 2021, 2022, and 2023, the annual reports of B.C.C. Lanka Limited for the financial years 2021/2022 and 2022/2023, and the annual reports and accounts of the National Salt Company for the financial years 2021/2022 and 2022/2023 were reviewed and subsequently approved.

Attention was drawn to the issues prevailing in the country’s industrial sector. The Secretary to the Ministry of Industry and Entrepreneurship Development pointed out that several issues, including the allocation of land to investors according to existing procedures, have persisted for a long time. Accordingly, it was revealed that the process of allocating land for a new industry could take more than four years. The Secretary also stated that, according to international concepts, generally 3% of a country’s land area should be allocated for industries, whereas in Sri Lanka this figure stands at only 0.01%.

It was also discussed that in the past, land was not allocated for industries in accordance with a national plan, but rather due to political or other reasons, resulting in various problematic situations. Accordingly, officials revealed that plans are now in place to allocate 50,000 acres of suitable land for industries across the island. The Committee recommended that a report be submitted, in consultation with the Land Reforms Commission, the Urban Development Authority, and the Sri Lanka Export Development Board, on the steps that could be taken and the future plan in this regard.

Attention was also drawn towards the current performance and issues of the National Gem and Jewellery Authority. Officials stated that steps will be taken in the future to merge the National Gem and Jewellery Authority with the Gem and Jewellery Research and Training Institute.

The current performance of the Sri Lanka Export Development Board was also taken into consideration. Officials stated that this is the only institution in the country responsible for promoting and developing exports, and that five-year plans have been prepared, covering sectors including apparel, tea, rubber, spices, information technology, gems, and jewellery. They further revealed that successfully managing the US taxation policies, the country’s largest export market, has been a significant achievement, and that with an export income of around USD 15 billion in 2023, the target is to increase this to USD 28 billion by 2028.

Officials stated that the production activities of the National Salt Company are being carried out with high efficiency. They pointed out that due to changes in climatic conditions, natural salt production has decreased in recent times. Accordingly, it was revealed that plans are in place to establish a facility in the Elephant Pass area to artificially produce salt using modern technology instead of the natural process. Officials further stated that the revenue target of the National Salt Company for this year is Rs. 1 billion, which is a 50% increase compared to the previous year.

It was also revealed that although B.C.C. Lanka Limited, a 192-year-old institution, produces high-quality coconut oil, the company has not obtained quality certifications. The current Chairman of the company informed the Committee that many export opportunities have been lost due to this situation, and that immediate steps have now been taken to obtain SLS, ISO, and other quality certifications.

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