Sri Lanka to revive small and medium industries in Jaffna

In an effort to boost the economy in the war-torn North, the Sri Lankan government is planning to revive the ceased industries in Jaffna.

The Cabinet Wednesday approved a plant to reactivate the Atchuvely Industrial Estate in Jaffna with an Indian grant of Rs 174 million.

The 65-acre industrial park that belongs to the Industrial Development Board (IDB), was established in 1971 in the Jaffna District to provide infrastructure facilities for the small and medium industries.

Due to the three-decade long ethnic conflict in the region, the 36 factories operated from the park were severely damaged.

The Government Media Unit said the Ministry of Traditional Industries and Small Enterprise Development has planned to reactivate this Industrial Estate with the assistance of the IDB and the Board of Investment (BOI).

In addition to the Indian grant, the Sri Lankan government is to grant provide Rs.25.0 million.

The Cabinet also granted approval to revive the Embilipitiya Paper Mill of the National Paper Company, Kantale Sugar Industries Limited (KSIL) and the Ceylon Ceramic Corporation

The government says it plans to call for Expressions of Interest from domestic as well as foreign investors to develop these industries under a Public Private sector partnership program as part of government's move to revive the national industries as state-owned enterprises without privatization of them.