BOI targets 3Q25 to start construction at Northern investment zones

BOI Chairman Arjuna Herath and Northern Province Governor N. Vedanayagam in discussion with Northern Province officials  

The Board of Investment (BOI) said yesterday that efforts are underway to accelerate the initial steps needed to ensure infrastructure facilities are in place at the proposed investment zones in Kankesanthurai, Paranthan, and Mankulam, aiming for investors to begin construction by the end of the third quarter.

BOI Chairman Arjuna Herath called for swift action at a meeting held at the Governor’s Office in Jaffna to review the progress of the Northern Province investment zones.

The meeting, chaired by Northern Province Governor N. Vedanayagam, brought together leaders of state institutions involved in the new zones, potential investors, and members of the Northern Province Chamber of Commerce.

The new zones are expected to create about 16,000 direct jobs and 50,000 indirect jobs.

The BOI said it plans to establish the zones as environmentally sustainable “green investment zones” aligned with international standards, aiming to boost the attractiveness of the areas to foreign direct investment (FDI).

The zones include a chemical manufacturing plant at Paranthan and an abandoned cement factory at Kankesanthurai, both previously used for industrial activities. “We underlined how crucial it is to introduce fresh economic activity to the areas,” the BOI said.

The Kankesanthurai Investment Zone will feature three modes of access—air, sea, and rail—to facilitate investment.

“Northern province officials are clear about the investment types they want in the new zones. Launching new investment projects in the northern area should match the aspirations of the youth,” the BOI said.

The BOI added that the Paranthan and Mankulam zones are expected to attract a diverse range of industries, not only bringing in much-needed funds but also creating opportunities for learning, technology transfer, and upskilling for northern youth.