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Government Targets 20% GDP Contribution from Manufacturing by 2030

The Sri Lankan government has unveiled an ambitious plan to elevate the manufacturing sector’s contribution to the GDP from 16% to 20% by 2030. This initiative aligns with broader objectives to enhance industrial competitiveness globally. Alongside this, entrepreneurship's workforce role is targeted to rise from 2.8% to 7%, while industrial exports aim to grow from 14% to 20% of GDP.

Policy Framework and Legislative Updates

The government has submitted the "National Industry Policy" and a strategic plan covering 2023-2027 to the Department of National Planning. Simultaneously, amendments to the Industrial Promotion Act are under review by the Attorney General’s Department to modernize legal frameworks and drive industrial growth.

Industrial Registration and Growth

By June 2024, the country had registered 3,925 manufacturing industries. A new online system now facilitates global access, promoting international partnerships and transparency.

Economic Contributions

The manufacturing sector recorded significant contributions in 2023-2024. Lanka Mineral Sands Limited generated USD 20.33 million from mineral sand sales, and Lanka Phosphate Limited produced approximately 50,000 metric tons, earning Rs.1,080 million. The gems and jewelry industry also demonstrated robust growth, contributing USD 478 million in 2023 and USD 194 million by mid-2024.

Support for SMEs

To encourage leadership and entrepreneurship, particularly among small and medium enterprises, a revolving fund loan scheme financed 179 projects with Rs.1,647 million in 2024.

Environmental Sustainability

In an effort to integrate sustainability into industrial growth, Rs.256 million was allocated for 15 environmentally friendly projects in 2024.

Celebrating Achievements and Promoting Innovation

The government declared June 22 as National Industry Day, marked by annual exhibitions since 2023. Furthermore, the National Gem and Jewellery Authority organized an international exhibition with 83 booths in 2024. To honor innovation and craftsmanship, the National Handicrafts Presidential Awards Ceremony celebrated 508 artisans at the Shilpa Abhimani Awards in 2023.

Collaborative Leadership

Key leaders, including Dr. Saranga Alahapperuma and Viraj De Silva, played instrumental roles in mobilizing efforts across sectors. Their vision and dedication exemplify a united approach to achieving industrial resilience and positioning Sri Lanka as a competitive player in the global market.

Conclusion

Sri Lanka’s multi-faceted strategy and focused initiatives aim to transform the manufacturing sector into a key pillar of the economy by 2030. These efforts are designed to foster resilience, sustainability, and global competitiveness, ensuring long-term industrial prosperity for the nation.

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