Sri Lanka to merge industrial agencies into new ‘Innovation Authority’: Minister

Sri Lanka is moving to consolidate its industrial regulatory framework by merging three key state agencies into a single entity, Minister of Industry and Entrepreneurship Development, Sunil Handunnetti said.

“We have identified three primary agencies required for industrial activities. We are working to integrate them and streamline operations in order to make work much easier,” Handunnetti told parliament.

“We are also in the process of establishing a new body called the Sri Lanka Industrial Transformation and Innovation Authority (SITIA) in place of the above,” Handunnetti said.

The new authority will absorb the Industrial Development Board (IDB), the National Enterprise Development Authority (NEDA), and the Small Business Development Division, he said.

“We obtained Cabinet approval for this move in January. We are now in the final stages of drafting the Act to eliminate duplication of work and make it easier for entrepreneurs to navigate the system,” Handunnetti said.

There were also plans to create 33 industrial zones across the country, according to the minister.

“A new 20-acre industrial zone is being developed within the Suriyawewa park in Hambantota it is now in the final stages,” Handunnetti said.

In Gampaha, the Aluthapola industrial zone has been prepared for handover to investors, he said.

Work has commenced on a specialized chemical production zone in Paranthan and a leather-centric park in Valachchenai, Batticaloa.

To attract long-term capital, the government is offering 35-year leases on land within these zones, priced according to state valuations, he said.