Dr Sarath Obeysekera  Ex CEO Cololmbo Dockyard , Walkers Cololmbo Shipyard and Ex chairman Sri Lanka Land Reclamation Corporation

බදු එකතු කිරීමෙන් ධනය නිර්මාණයට — ශ්‍රී ලංකාවට නව ආර්ථික දැක්මක්

  Sri Lanka today appears trapped in a cycle where governments focus heavily on tax collection to stabilize the economy. While fiscal discipline is necessary, excessive dependence on taxation places a growing burden on ordinary citizens and businesses already struggling with inflation and slow growth.

In many ways, people feel this resembles the colonial-era body tax” systems imposed by the British Empire — extracting revenue from the population while economic opportunities remain limited. Yet history also teaches us an important lesson: the British did not merely collect taxes. They simultaneously invested in infrastructure — railways, ports, roads, plantations, and administrative systems that expanded economic activity. Some even argue that wealth generated from colonies helped finance massive developments in Britain itself, including parts of London’s transport infrastructure.

Sri Lanka therefore cannot survive by taxation alone. The country must move urgently from a revenue extraction economy” to an investment creation economy.”

The Need for a Revolutionary Shift in Thinking

What Sri Lanka needs today is not merely more taxes, but a national strategy to attract large-scale Foreign Direct Investment (FDI).

Government institutions such as the Export Development Board and the Board of Investment of Sri Lanka must think beyond traditional sectors and aggressively market Sri Lanka as an industrial, logistics, energy, and maritime hub.

For years, discussions about development have focused on Colombo. Yet the future opportunities may lie elsewhere — particularly in Eastern Sri Lanka and along newly developed highway corridors.

Mattala Airport: From Political Symbol to Economic Zone

The proposal to divest or commercially restructure Mattala Rajapaksa International Airport should not be viewed emotionally. Airports alone do not create prosperity unless surrounded by economic activity.

Around Mattala lies vast underutilized land. Instead of allowing the airport to remain idle, Sri Lanka should create:

• Industrial parks
• Logistics zones
• Renewable energy parks
• Agro-processing industries
• Export manufacturing hubs
• Aviation maintenance facilities

This is how many successful countries transformed remote infrastructure into economic engines.

Lessons from the M4 Corridor in Britain

The M4 motorway corridor west of London evolved into one of Britain’s major economic zones because industries, technology parks, warehouses, and business centers were systematically developed around transport infrastructure.

Sri Lanka should adopt a similar model:

• Lands adjacent to expressways should be strategically leased or divested for industries.
• Highway development must be linked with industrialization.
• Transport corridors should become economic corridors.

The Southern and Eastern regions hold enormous untapped potential for this approach.

Eastern Sri Lanka: The Next Investment Frontier

Eastern Sri Lanka possesses several advantages:

• Deep natural harbors
• Large land availability
• Proximity to international shipping lanes
• Renewable energy potential
• Fisheries and marine resources
• Tourism opportunities

The development of Trincomalee Harbour could become transformational if integrated with:

• Ship repair
• Offshore engineering
• LNG and energy projects
• Maritime training
• Export industries
• Blue economy investments

Rather than relying solely on government funding, Sri Lanka must embrace Public-Private Partnerships (PPP) with both local and foreign investors.

Solar Panels Along Highways

Several European countries have experimented with solar panel installations along highways and transport corridors. Sri Lanka, blessed with strong sunlight throughout the year, should seriously explore:

• Solar canopies over parking and rest areas
• Solar barriers along highways
• Renewable energy zones near expressways

This would reduce fuel dependency while supporting industrial power needs.

The Digitalization Problem

One major obstacle remains: digitization in Sri Lanka is painfully slow.

Investors today expect:

• Fast approvals
• Transparent online systems
• Digital customs procedures
• Efficient land registration
• Electronic payment systems
• Predictable regulations

Without rapid digital transformation, Sri Lanka risks losing investors to faster-moving regional competitors such as Vietnam, India, Indonesia, and the Gulf states.

A New National Mindset

Sri Lanka cannot endlessly survive by increasing taxes on a shrinking productive population. Sustainable prosperity comes from:

• Investment
• Industrialization
• Export growth
• Technology
• Logistics
• Energy development
• Skilled employment

The future belongs to nations that create wealth — not merely collect revenue.

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