Deputy Minister Chathuranga reveals 1st quarter progress of his ministry
First Quarter Progress – Ministry of Industries & Enterprise Development | 2025
As the Deputy Minister of Industries & Enterprise Development, I believe in maintaining transparency, focus, and accountability.
The beginning of 2025 marked a critical phase in our journey toward industrial and entrepreneurial revival. With a clear strategy and a committed team, we’ve taken tangible steps across multiple fronts. Here’s a comprehensive update for Q1:
1. Stabilization of State-Owned Enterprises (SOEs)
Many SOEs continue to face operational and financial distress. We initiated turnaround strategies for over a dozen entities:
• New Boards of Directors appointed
• Key challenges identified and diagnostic reviews completed
• Recovery and restructuring roadmaps in place
Notable progress:
• BCC Lanka exceeded revenue expectations
• National Salt & Ceramics Corporations opened new manufacturing facilities
• Salusala & Laksla relaunched with new market strategies
• Lanka Mineral Sands resolved key technical bottlenecks
• Paper, Sugar, and Cement Corporations are undergoing structural redesigns
2. Budget Allocation & Policy Development
We secured Rs. 13 Billion for the Ministry in Budget 2025, with approximately Rs. 100 Billion allocated across the government ecosystem for industry and entrepreneurship.
Policy Development in Progress:
• National Tariff Policy
• Anti-Dumping Policy
• National Industrial Policy (NIP)
• SME National Policy
• Motor Vehicle Assembly Operations Framework
• Industrial Land Use Policy
• Export Promotion Strategy
3. SME Debt Crisis Response
SMEs have been among the hardest-hit segments of the economy.
We initiated a collaborative process involving the Ministry of Finance, banks, and key stakeholders:
• Temporary relief through extension of Parate Execution window
• Sector-level consultations involving 12,000+ SMEs
• Focus on transitioning SMEs from “Recovery” to “Revival” stage
• Capital access solutions being co-designed with financial institutions
4. Institutional Restructuring
To eliminate redundancy and optimize resource allocation across state support agencies:
• Initiated a life-cycle based entrepreneurship support model
• Aligned institutional roles of NEDA, EDB, IDB, ZED, and NPS
• Structure finalized – rollout planned for June 2025
• Capacity-building and cross-agency training already completed
5. Industry-Specific Interventions
We extended targeted support to 21 priority industrial sectors.
Wins:
• VAT exemption for raw material in local pharmaceuticals and dairy-based products (like liquid milk & yogurt)
• Coconut-based industry recovery strategy launched
• Engagements underway to mitigate challenges in vehicle assembly and steel-based manufacturing
• First Exporter Forum held; 17 critical business issues prioritized for resolution
6. Investor Relations & Diplomatic Engagements
We’re experiencing rising interest from both local and foreign investors.
• ~200 new industrial land requests in Western Province alone
• Strong bilateral understanding established with almost every foreign mission in Colombo
• Project-level collaborations in place with UNIDO, UNDP, ILO, NiPO and others
7. January 2025 Action Plan – Status Update
Progress on strategic initiatives:
• SOE Restructuring: In progress
• SME Performance Framework: In progress
• Rs. 50Bn Collateral-Free Loan Facility: Launching in June
• National Venture Capital Fund: Funding alternatives under study
• Productivity Awards: To be launched on May 15
• Handicraft Sector Strategy: In development
• 4 New Industrial Parks: Land & planning completed
• Digital Industry Registry: Under development
• Vehucle Essmbly Industry SOP & Policy Review: Finalizing by May
• National Tariff Policy: Cabinet approval expected in May
• Industrial Policy Review: Public consultations in June
• Reforms for Existing Industrial Parks: Funding secured and work begun
• Internal Audit Strengthening: Ongoing
• Digital Transformation Roadmap for Industries: Not yet initiated
• Incubator Infrastructure Plan: PPP discussions underway
We are committed to addressing urgent challenges while laying the foundation for long-term, sustainable industrial growth. This journey is complex and ambitious — but with the right teams, clear data, and strong partnerships, we believe it’s achievable.
Thankful to the leadership of the Minister Sunil Handunneththi and amazing staff along with the new chairmans and directors for thier hard work
We invite you to join hands with us. Let’s co-create a thriving industrial future for Sri Lanka.
Your feedback, ideas, and support matter.
