By The Pulseline News Desk
Sri Lanka plans to increase the share of land allocated for industrial development from the current 0.03% to at least 1% by 2030, as the Government seeks to address land constraints facing industries while ensuring environmental sustainability.
Industries Minister Sunil Handunnetti has reportedly announced the target at the Presidential Environment Awards Ceremony 2026, highlighting the need to strike a balance between expanding industrial activity and protecting the country’s natural resources.
The proposed expansion would significantly increase the land available for industrial development, addressing a longstanding challenge for businesses seeking to expand operations, improve production capacity and adopt environmentally sustainable practices.
The Minister has said industrialists continued to face difficulties in securing adequate land for their businesses, creating obstacles to expansion and investment. He has stressed the importance of addressing these constraints while ensuring that industrial development remained consistent with environmental protection requirements.
Raw material shortages add to challenges
Land availability is not the only concern confronting Sri Lankan industries. The Minister has also drawn attention to difficulties in obtaining essential raw materials, including sand, stone, gravel and clay, which are required for various industrial activities.
He has emphasised the need to resolve these supply constraints while ensuring compliance with environmental laws and regulations.
The challenge for policymakers is to facilitate legitimate industrial operations without compromising environmental safeguards. Restrictions on the extraction and use of natural resources must therefore be considered alongside the needs of industries that depend on these materials.
Addressing such issues will be important as Sri Lanka seeks to attract investment, expand manufacturing and create opportunities for businesses to grow.
Environmental standards increasingly important for exports
The Minister has also highlighted the growing importance of environmental protection to Sri Lanka’s export sector, noting that international markets were placing greater emphasis on environmental standards, greenhouse gas emissions and carbon footprints.
These considerations are becoming increasingly relevant to exporters seeking to remain competitive in markets where sustainability requirements influence production processes and business practices.
For Sri Lankan industries, improving environmental performance is therefore not merely a matter of regulatory compliance. It is also an important consideration in maintaining access to international markets and strengthening the country’s export competitiveness.
As a result, efforts to expand industrial land must be accompanied by measures that encourage cleaner production, responsible resource use and compliance with environmental standards.
Recognising environmental leadership
Commending the individuals and institutions recognised at the Presidential Environment Awards Ceremony 2026, Handunnetti has acknowledged their contributions to environmental conservation and sustainability.
He has urged the award recipients to continue promoting environmentally responsible practices within their industries and communities.
The annual awards, organised by the Central Environmental Authority, recognise individuals and institutions for their contributions to environmental protection and sustainable development.
Balancing growth with sustainability
Sri Lanka’s proposed target of allocating at least 1% of its land for industrial development by 2030 signals an ambition to address a key constraint on industrial expansion.
However, achieving that objective will require more than increasing the availability of land. Effective planning, access to essential raw materials and adherence to environmental regulations will also be important in ensuring that industrial growth is sustainable.
The Government’s challenge will be to create sufficient space for businesses to expand while safeguarding ecosystems and natural resources.
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