Sri Lanka is set to establish a major logistics hub in Trincomalee’s Kappalthurai, targeting heavy industries and aiming to attract up to $1.5 billion in investment. State Minister of Investment Promotion Dilum Amunugama announced the development, highlighting the 600-acre zone’s potential to connect sea, air, and railway cargo freights.
This new logistics hub will be the second of its kind, following the Hambantota investment zone near a Chinese-built port. The Kappalthurai zone will be dedicated to heavy industries and is expected to enhance industrial operations with its integrated transportation infrastructure.
Amunugama emphasized the strategic importance of the hub, stating, “Kappalthurai is being developed as a new zone on 600 acres connected to the port. It will be a logistics hub solely for heavy industries, making it the most attractive zone with sea, air, and rail cargo capabilities from Trincomalee.”
The initiative comes amidst ongoing discussions about developing an energy hub in Trincomalee, a district rich in mineral resources, including Ilmenite, Rutile, Zircon, and Monazite. The development of this logistics hub aligns with Sri Lanka’s broader investment strategy and aims to avoid geopolitical conflicts while fostering economic growth.
Minister Amunugama assured that the government intends to treat all investors equitably and aims to prevent any geopolitical tensions from affecting the new investment zone.