Kerawalapitiya land lease approval marks a new industrial investment initiative in Sri Lanka. The 30-year agreement grants DHT Cement’s subsidiary access to reclaimed land for a $7 million manufacturing facility targeting domestic and export markets.
Kerawalapitiya land lease approved for DHT Cement unit’s $7M manufacturing plant
Sri Lanka’s Cabinet of Ministers has approved a 30-year lease of state land in Kerawalapitiya to Powertech Products (Private) Limited, a subsidiary of DHT Cement, in a move aimed at strengthening the country’s industrial manufacturing base. The lease agreement involves a lump sum payment of 272.20 million rupees and an annual nominal rent of 83,500 rupees, according to Cabinet Spokesman and Minister Vijitha Herath.
The Kerawalapitiya land lease covers an extent of 3 acres, 1 rood, and 0.95 perches and will be utilized to establish a manufacturing facility for fiber cement corrugated roofing sheets, flat sheets, and associated accessories. The project is expected to involve an investment of approximately 7 million US dollars and will serve both domestic demand and export markets. By positioning the facility to cater to export-oriented production, policymakers are aligning the project with broader foreign exchange generation objectives.
Powertech Products (Private) Limited was incorporated under the regulatory framework of the Board of Investment of Sri Lanka to implement the initiative. BOI-backed projects typically benefit from structured incentives, streamlined approvals, and defined compliance obligations, enabling faster operationalization compared to conventional industrial licensing pathways. This regulatory channel indicates that the project falls within Sri Lanka’s prioritized investment segments.
The leased property is situated within a 400-acre reclaimed marshland area in Wattala developed by the Sri Lanka Land Development Corporation. The land underwent a high-cost sand-filling process to render it suitable for industrial usage, reflecting significant prior public investment in site preparation and infrastructure. Reclaimed industrial zones of this nature are strategically positioned near port and logistics corridors, reducing transportation friction and supporting supply chain efficiency for export-driven manufacturers.
From an economic standpoint, the structure of the Kerawalapitiya land lease reflects a capital-front-loaded model. The substantial lump sum payment secures long-term land access, while the nominal annual rent ensures predictable cost allocation across the 30-year tenure. Such structuring lowers recurring land overhead relative to operating expenditure, which is particularly relevant for manufacturing sectors operating on tight margin cycles. For the government, the arrangement balances immediate fiscal inflows with long-term industrial utilization of previously developed land assets.
The product line—fiber cement roofing and flat sheets—addresses both construction demand and infrastructure expansion. As Sri Lanka continues rebuilding and modernizing urban and rural housing stock, roofing materials remain a steady demand segment. Concurrently, export opportunities in regional markets offer diversification potential. Fiber cement products are valued for durability, fire resistance, and cost efficiency, attributes that position them competitively within emerging construction economies.
Strategically, Kerawalapitiya has evolved into a focal industrial corridor. The zone’s proximity to Colombo Port and major highways enhances logistical connectivity, reducing turnaround time for raw material imports and finished goods exports. The government has consistently reserved large tracts within the area for high-priority industrial ventures to stimulate manufacturing output and support foreign exchange stability. This lease therefore aligns with a broader industrial policy aimed at transitioning from import dependence toward domestic value addition.
However, long-term project viability will depend on several variables. Construction material demand is sensitive to macroeconomic cycles, interest rate fluctuations, and public infrastructure spending levels. Additionally, exchange rate movements may influence the cost structure if raw materials or machinery are imported. Export competitiveness will hinge on pricing efficiency, trade access, and quality consistency relative to regional suppliers.
The Kerawalapitiya land lease represents more than a single investment approval; it signals a continued effort to activate prepared industrial land through structured, long-horizon agreements. By leveraging reclaimed and infrastructure-ready sites, Sri Lanka reduces entry barriers for mid-scale manufacturing investors. If executed efficiently, the DHT Cement subsidiary’s facility could contribute incremental employment, domestic supply substitution, and moderate export earnings over its 30-year tenure.
As the government advances its industrialization agenda, the effectiveness of such land lease arrangements will ultimately be measured by operational sustainability, export performance, and integration into broader manufacturing value chains.