Urgent Call to Action: Developing Trincomalee as a Strategic Industrial & Energy Hub
Posted on December 17th, 2025
Dr Sarath Obeysekera
Sri Lanka is approaching a critical economic and energy crossroads. Delays in strategic infrastructure development will inevitably deepen fiscal, employment, and foreign exchange pressures. Trincomalee offers a rare, time-sensitive opportunity to attract large-scale Foreign Direct Investment (FDI) and position Sri Lanka as a regional industrial and offshore energy hub.
Strategic Proposal
The Government should immediately invite Expressions of Interest (EOIs) from global investors and operators to develop Trincomalee as a:
- Offshore Oil & Gas Rig Lay-Up, Repair, and Construction Hub
- Lay-up and preservation of oil rigs
- Fabrication and integration of offshore modules
- Conversion and refurbishment of drilling platforms
- Environmentally compliant dismantling and recycling
- Wind Energy & Offshore Renewable Manufacturing Base
- Fabrication of offshore wind towers, jackets, monopiles
- Assembly of nacelles and blades
- Pre-assembly and marshaling yards for offshore wind farms
- Export hub for South Asia, Middle East, and Africa
Why Trincomalee – Why Now
- One of the world’s finest natural deep-water harbours
- Minimal dredging requirements
- Strategic location on major East–West shipping routes
- Availability of land for heavy industrial zones
- Ideal for PPP and BOOT models
- Rising global demand for:
- Offshore energy infrastructure
- Rig lay-up due to oil price volatility
- Renewable energy equipment
If Sri Lanka delays, competing ports in India, Vietnam, Oman, and Turkey will capture this investment permanently.
Immediate Government Actions Required
- Cabinet-approved policy declaration positioning Trincomalee as a Heavy Offshore Industrial Hub
- Fast-track EOIs / RFPs to:
- Global oil & gas service companies
- Offshore wind developers
- Floating dock and heavy fabrication operators
- Establish a single-window approval authority for:
- Environmental clearance
- Port access
- BOI incentives
- Ring-fence land and sea zones for:
- Lay-up berths
- Heavy fabrication yards
- Floating docks
- Offer time-bound incentives:
- Tax holidays
- Duty-free import of capital equipment
- Long-term lease guarantees
National Impact
- Billions in FDI inflows
- Thousands of high-skill engineering jobs
- Technology transfer to Sri Lankan industry
- Strengthening of foreign reserves
- Long-term revenue without sovereign debt
- Positioning Sri Lanka in the global energy transition supply chain
Conclusion
Government must act fast.
This is not a future vision—it is an urgent necessity. Trincomalee can become Sri Lanka’s industrial and energy gateway, but only if decisive action is taken now.
Regards
Dr Sarath Obeysekera