Sri Lanka’s Ministry of Industry shares first quarter progress report

Sri Lanka’s Deputy Minister of Industry and Entrepreneurship Development, Chathuranga Abeysinghe, posted a detailed update on his official Facebook page this week, outlining the Ministry’s progress during the first quarter of 2025.

The post, titled “Before Starting Work: Progress Report for the First Quarter,” gives a clear overview of actions taken since January, 2025 and the results achieved so far.

Key Highlights from the Report:

1. Stabilizing State-Owned Enterprises (SOEs)

The Ministry has been actively working to improve underperforming state-owned enterprises:

• New boards of directors have been appointed.
• Strategic recovery plans were created after identifying key issues.
• BCC Lanka has reported record-breaking revenues.
• National Salt Limited and Ceylon Ceramics Corporation have opened new factories.
• Lanka Salusala Ltd and Lak Salusala have re-entered the market with refreshed strategies.
• Technical issues in the Mineral Sands sector are being resolved.
• Restructuring plans are in progress for several other institutions, including the Sugar Company, National Paper Company, and Sri Lanka Cement Corporation.

2. Budget and Policy Development

The Ministry received a budget of LKR 13 billion. Including allocations from other ministries, around LKR 100 billion is being invested in the industrial and entrepreneurial sectors.

Key national policies under development:

• National Tariff Policy
• Anti-Dumping Policy
• Policy framework for the vehicle assembly industry
• National Industry Policy
• National SME Policy
• Industrial Land Policy
• Export Promotion Policy

3. SME Credit Crisis Intervention

To support struggling SMEs:

• The Ministry worked closely with the Ministry of Finance.
• Relief measures included extending the implementation period of the Parate Law.
• By February, nearly 12,000 SMEs had re-engaged in discussions with banks.
• Steps are being taken to support fresh working capital access for SMEs.

4. Institutional Service Restructuring

A plan is underway to streamline functions among entrepreneurial support institutions. A new business lifecycle-based support model is nearly complete and will be launched in June, 2025. Training programs have already been integrated internally.

5. Targeted Industrial Support

Support has been extended to 21 key industries. Major policy actions include:

• Removal of VAT on local pharmaceutical production, liquid milk, and yogurt.
• The vehicle assembly industry has faced setbacks due to import taxes, but solutions are being developed.
• A special action plan has been launched for the coconut-based industry.
• The first Exporter Forum was held, covering 17 focus areas.

6. Engagement with Investors and International Partners

There is strong investor interest, though land availability remains a challenge. Around 200 land requests have been made in the Western Province. Productive collaboration is ongoing with international organizations such as UNIDO, UNDP, ILO, and NIPO, as well as with several embassies.

January Plan – Actions and Their Progress

Deputy Minister Abeysinghe also reported on the Ministry’s January action plan, sharing updates on each item:

• Develop strategic direction for mineral resources – In Progress
• Strategically restructure SOEs – In Progress
• Establish a framework to evaluate SME excellence – In Progress
• Launch a LKR 50 billion unsecured business loan scheme – Ready to launch in June, 2025
• Launch a LKR 15 billion unsecured loan fund via NCGI – Launched
• Create a venture capital fund for new businesses – No budget allocation; alternatives being explored
• Launch National Productivity Awards – To be publicized on May 15, 2025
• Develop a national strategy for the handicraft industry – In Progress
• Develop four new industrial zones – Preliminary work completed
• Initiate digital transformation for service excellence – Not started
• Develop an industrial data system – In Progress
• Establish standard operating procedures (SOPs) for scrap metal distribution – In Progress
• Appoint a consultative committee on SME finance issues – Appointed
• Review SOPs for EV and vehicle assembly industry – To be completed by May, 2025
• Draft a new tariff policy – Cabinet approval expected in May, 2025
• Review current industrial policy – Second review and public consultations planned for June, 2025
• Address issues in existing industrial zones – Funding received; work underway
• Develop a digital transformation strategy for industries – Not started
• Design an incubator building plan for new businesses – Discussions ongoing; PPP model being explored
• Strengthen internal audit functions within the Ministry – In Progress

A Call for Public Engagement

In closing his post, Deputy Minister Abeysinghe invited the public to share suggestions and ideas. He also noted that his office had received nearly 1,000 inquiries via email in the past three months.

Email: deputy.minister@industry.gov.lk
Posted on: Facebook – April 16, 2025

“Let’s build the country together,” the Deputy Minister wrote, emphasizing the Ministry’s commitment to both immediate recovery and long-term development.

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