Paranthan Chemical Factory reconstruction begins after four decades

The foundation stone for the reconstruction of the Paranthan Chemical Factory, closed since 1985 due to the conflict in the Northern Province, was laid on January 21, 2026 at the Paranthan Chemical Industrial Zone.

The ceremony was held under the patronage of the Minister of Industry and Entrepreneurship Development, Hon. Sunil Handunnetti.

The Paranthan Chemical Factory is one of Sri Lanka’s earliest industrial establishments. It was originally launched in 1954 in Paranthan, in the Kilinochchi District of the Northern Province, as a government owned chemical factory. In 1957, under the State Industrial Corporations Act No. 49 of 1957, it was brought under the name Paranthan Chemicals Corporation.

Before its closure in 1985, the factory used locally available raw materials to produce caustic soda and liquid chlorine as its main products. Hydrochloric acid, zinc chloride, and table salt were produced as by products.

Later, under the Conversion of Public Corporations or Government Owned Business Undertakings into Public Companies Act No. 23 of 1987, Paranthan Chemicals was incorporated as a public limited liability company on January 17, 1991.

The reconstruction project is being carried out with an investment of LKR 6,900 million and is scheduled to be completed within 30 months. Once completed, the factory is expected to produce Poly Aluminum Chloride and Hydrochloric Acid to meet domestic market demand.

The event was attended by the Minister of Fisheries, Hon. Ramalingam Chandrasekaram; Secretary to the Ministry of Finance, Mr. Harshana Suriyapperuma; Chairman of C S Paranthan Chemicals Company, Mr. Sadanamdam Nesarajan; along with several government officials and distinguished guests.