The 2027 Budget allocates Rs 4 billion for industrial estate development nationwide and sets out a programme to bring Sri Lanka’s mineral deposits into industrial use, which the government says have never been fully integrated into the economy.
Industrial estates
The Rs 4 billion covers the Valachchenai Industrial Estate, feasibility studies and preliminary plans for a proposed estate at Puliyankulam, and infrastructure improvements at existing estates, the Daily Mirror reported. Development continues at Ingiriya, Dambulla, Raigama-Millaniya and Katunayake.
A further Rs 750 million goes to export promotion, competitiveness and high-value exports, including staging Sri Lanka Expo 2027 in January and implementing priorities under the National Export Development Plan.
Other industry measures in the filing:
- Rs 1,860 million to build premises at Narahenpita so the Ministry of Industries — currently in Kollupitiya — and all institutions under it can move to one site.
- A feasibility study for a knowledge and experience centre linking universities and industry, covering research and development and the commercialisation of new products and processes.
- Resumption of production at the Kurunchantivu Salt Pan, suspended at present, funded from National Salt Limited, with employment expected in the Northern Province. The General Treasury has allocated Rs 236 million for 2026 — this year, not next — for access roads and supporting infrastructure.
- An amendment to the National Gem and Jewellery Authority Act, No. 50 of 1993 to create the legal provisions needed to license the jewellery industry.
- Land acquisition for an International Gem and Jewellery Trade Hub bringing trading, export facilities, laboratory services and licensing under one roof. The University of Moratuwa is expected to conduct the preliminary feasibility study.
Minerals
Despite significant deposits, their potential has not been fully brought into the economy, the government said. The Geological Survey and Mines Bureau is to conduct preliminary feasibility studies on mineral deposits to maximise economic returns, and the government plans to “seek specialised technical expertise from overseas to improve mineral exploration activities,” according to the Daily Mirror.
| Mineral | Site | Status |
|---|---|---|
| Graphite | Kahatagaha Graphite Mine (102 acres) | Reserves to be assessed, then an investor identified for value addition |
| Mineral sands | 58 grids, eastern coastal belt | Allocated by Cabinet to Lanka Mineral Sands Limited; Negotiating and Project Committees set up to select an investor |
| Silica sand | Nattandiya (40 acres) | Exploration under way; investor identification planned for 2027 |
| Quartz | Kotigambokka, Wellawaya area (28 metric grid units) | Identified; investor recruitment planned for 2027 |
The common structure across all four is the same: establish what is in the ground, then find an investor for value addition rather than raw export.
Context
Kahatagaha is one of Sri Lanka’s historic vein graphite mines, and vein graphite — which the island produces in unusually high purity — has drawn interest as battery-grade feedstock. The repeated emphasis on “value addition” reflects a long-standing complaint that Sri Lanka exports minerals raw and imports the processed product back.
Sourcing note
Both filings are from the Daily Mirror, so this report carries a single verified newsroom. Searches across other verified outlets found no independent account of either announcement at the time of writing; on budget day, outlets divide the speech into separate line-item reports and coverage of the industry section was thin. The figures are as the Daily Mirror recorded them from the speech.
Not reported
Neither filing gives a timeline for the Valachchenai or Puliyankulam estates, says how the Rs 4 billion splits between them, or names any prospective investor for the four mineral projects. Neither states what the Kahatagaha reserve assessment is expected to cost or when it concludes, and neither explains why the Kurunchantivu salt pan infrastructure is funded from the 2026 rather than the 2027 allocation.