Sri Lanka aims to increase the share of land allocated for industrial activities from the current 0.03 percent to at least one percent by 2030, as the government seeks to attract more investment, expand industrial production and support business growth while safeguarding the environment, Industry and Entrepreneurship Development Minister Sunil Handunnetti said.
Speaking at Presidential Environment Awards Ceremony 2026, at the BMICH, Colombo, Handunnetti said the land shortages remained a major obstacle to industrial expansion, despite the growing investor interest in Sri Lanka.
He said many local industrialists and entrepreneurs operated their businesses on limited land, restricting their ability to expand the operations and implement environmental protection measures to the required standards.
“Investors are coming to our country and demanding opportunities but we have a major problem related to land,” Handunnetti said, stressing the need to make more land available for industrial development.
Handunnetti said the government was focusing on identifying suitable land for industries while ensuring compliance with the environmental laws and regulations.
The availability of raw materials including sand, stone, gravel and clay, was another challenge affecting industrial operations, with the businesses facing difficulties in obtaining the required materials in sufficient quantities and on time.
The Industries Ministry was working to address these constraints by coordinating with the relevant institutions and facilitating the lawful supply of essential materials while maintaining the environmental safeguards, he said.
Handunnetti added that industrial development and environmental conservation should go hand in hand, with the businesses encouraged to adopt sustainable practices rather than view environmental compliance as an obstacle to growth.
Environmental performance was also becoming increasingly important for Sri Lankan exporters seeking to compete in international markets, particularly as the global standards placed greater emphasis on carbon emissions and greenhouse gas management.
He said industries needed to pay closer attention to their carbon footprints and environmental impact to remain competitive in the export markets and meet the evolving international requirements.
