BOI Accelerates Northern Province Investment Drive with Two New Export Processing Zones
JAFFNA, October 7, 2026 — The Board of Investment of Sri Lanka (BOI) is accelerating plans to transform the Northern Province into a new investment and export hub, with the proposed Export Processing Zones (EPZs) at Paranthan and Kankesanthurai (KKS) set to move into key implementation stages over the coming months.
BOI Chairman Duminda Hulangamuwa and Director General Dr. Sulakshana Jayawardena recently visited the Northern Province to assess investment potential, engage regional authorities and investors, and advance plans to establish the two industrial zones.
At the proposed Paranthan EPZ, BOI officials held discussions with the District Secretary of Kilinochchi, Divisional Secretary of Paranthan, representatives of the Ministry, Road Development Authority, Provincial Road Development Authority, Railway Department and electricity authorities.
Following the discussions, the BOI confirmed that land reservations for investors at Paranthan are expected to open by the end of November 2026, while internal infrastructure development is scheduled to commence in early January 2027.
A similar implementation timeline has been established for the proposed KKS industrial zone. During a meeting at the Tellippalai Divisional Secretariat, attended by senior government and regional officials, the BOI confirmed that internal infrastructure development at KKS is also targeted to begin by early January 2027.
The parallel development of the two zones is expected to create new opportunities for export-oriented industries while strengthening the Northern Province’s position as an emerging investment destination.
To build investor interest ahead of the development programme, the BOI plans to conduct a familiarisation and investment promotion visit in November 2026 for leading investors and investor associations. The programme will provide potential investors with first-hand exposure to the opportunities available in the Northern Province, including the proposed Paranthan and KKS industrial zones.
During the visit, the BOI also engaged with existing and prospective investors to identify practical barriers affecting investment and business expansion in the region.
Investors highlighted the need for simpler and more consistent procedures for land valuation and allocation, faster approvals and clearances from relevant agencies, and stronger coordination between government institutions.
In response, Chairman Hulangamuwa proposed the establishment of a Single-Point Coordination Mechanism to track investor issues through to resolution. The mechanism is expected to coordinate with relevant government agencies and administrative and political authorities to expedite approvals and address implementation bottlenecks.
The BOI also discussed the establishment of a Single-Point Investor Facilitation Centre in the Northern Province with Governor Nagalingam Vethanayahan. The proposed centre would provide investors with a central point of contact for approvals and services involving both regional and national government institutions.
Another initiative proposed by the BOI is the development of a Regional Manpower Information Database/Data Centre, designed to provide investors with information on the availability, qualifications and skills of the Northern Province workforce.
The initiative is intended to strengthen the region’s investment proposition by allowing businesses to assess local workforce availability when considering new projects and expansions.
Beyond industrial infrastructure, the BOI is also exploring opportunities in emerging export sectors. At Ariyalai in Jaffna, the Chairman and Director General visited sea cucumber and seaweed cultivation projects and met industry stakeholders to assess the potential for expanding and commercialising these activities.
The BOI identified significant potential for seaweed and sea cucumber-related industries to develop into export-oriented businesses capable of generating employment, incomes and new economic opportunities across the Northern Province.
With the Paranthan and KKS industrial zones progressing towards infrastructure development, new investor facilitation mechanisms being planned, and emerging export sectors receiving greater attention, the BOI is seeking to establish a broader investment ecosystem in the North.
The initiative is expected to create new pathways for private investment, strengthen export capacity and generate employment, while positioning the Northern Province as a more competitive destination for domestic and international investors.
