ECONOMYNEXT

ECONOMYNEXT – Sri Lanka has urged investors from Belgium and Luxembourg to seize opportunities in the island nation, citing economic reforms, affordable real estate and cheap labour.

Speaking at a panel discussion during the BELGOLUX -Sri Lanka Business Forum with a number of Belgian and Luxembourg delegates at Colombo Port City, deputy minister of Industries and Entrepreneurship Development Chaturanga Abeysinghe called on investors to capitalize on early-stage opportunities to maximize returns.

Being a part of this growth as early as possible is going to yield greater returns because land is competitively priced, real estate is affordable, and you can hire talent that is not as costly as in other developed regions,” Abeysinghe said.

Abeysinghe said the government was was planning to push through reforms such as the Investment Protection Act, Public-Private Partnership (PPP) Act, along with land and labor policy overhauls.

The event, organized by the BELGOLUX – Sri Lanka Business Council of the Ceylon Chamber of Commerce, highlighted growing trade relations with the European Union while emphasizing Sri Lanka’s strategic maritime location.

I think the number one investment opportunity is in infrastructure because we will open up public-private partnerships this year through the new Public private partnership act. There will be a significant opportunity to partner with the government of Sri Lanka in investing in infrastructure. May it be energy, may it be telecom, may it be road networks, ports, or airports,” Abeysinghe said.

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Green Hydrogen and Green Ammonia Pilot Project for Sri Lanka: A Strategic Opportunity

The global engineering consultancy Royal HaskoningDHV⁠ has extensive experience in developing green hydrogen ecosystems and has undertaken similar World Bank-supported studies in countries such as Morocco. Sri Lanka has now embarked on a serious initiative to develop green hydrogen and green ammonia projects, supported by its National Hydrogen Roadmap and recent investor outreach initiatives.

Sri Lanka’s Ministry of Energy and the Board of Investment (BOI) have invited international investors to submit proposals for:

* Green hydrogen production facilities
* Green ammonia manufacturing plants
* Storage and export terminals
* Hydrogen component manufacturing facilities
* Associated renewable energy infrastructure

Why Sri Lanka Has Potential

Sri Lanka possesses significant renewable energy resources:

* Solar potential of approximately 16 GW
* Wind potential exceeding 50 GW, particularly in the Northern and Eastern Provinces
* Deep-water ports suitable for export and bunkering operations
* Strategic location on major East-West shipping routes

Potential Pilot Project Locations

Trincomalee Harbour

* Offshore wind-powered hydrogen production
* Green ammonia export terminal
* Bunkering hub for future green-fuelled ships
* Heavy engineering and assembly base for hydrogen equipment

Hambantota Port

* Industrial-scale green ammonia production
* Export hub to Asia and the Middle East
* Integration with industrial zones

Mannar

* Large-scale wind-powered electrolysis projects
* Hydrogen production feeding export terminals

Economic Benefits

A successful pilot project could:

* Generate significant foreign direct investment (FDI)
* Create high-skilled engineering and technical employment
* Produce future marine fuels for global shipping
* Reduce dependence on imported fossil fuels
* Position Sri Lanka as South Asia’s first green hydrogen and ammonia export hub

Sri Lanka’s National Hydrogen Roadmap aims to establish a green hydrogen economy and has set an aspirational target of generating around US$1 billion annually from the green energy value chain by 2030.

For your interest in developing Trincomalee Harbour as a heavy engineering and offshore services hub, a World Bank-funded pilot project led by Royal HaskoningDHV could be expanded beyond hydrogen production to include:

* Green ammonia bunkering facilities
* Assembly and repair of offshore wind equipment
* Manufacturing of electrolyser components
* Production of green fuels for shipping and industrial users

This could transform Trincomalee into a regional Green Energy and Offshore Engineering Hub of the Indian Ocean.