The Governor of the Northern Province, Hon. N. Vethanayahan, stated that despite the many years that have passed since the end of the civil war, the Northern Province’s contribution to Sri Lanka’s Gross Domestic Product (GDP) remains significantly lower than that of the country’s other provinces.
He further noted that while Sri Lanka has set a national economic growth target of 7 percent, the Northern Province has embarked on a strategic drive to revive its economy by setting an ambitious target of achieving 10 percent economic growth.
A special discussion with sector experts and key stakeholders on strategies to significantly increase the Northern Province’s contribution to Sri Lanka’s national production was held at the Governor’s Secretariat Conference Hall on Thursday (23 July 2026).
During the discussion, the Hon. Governor noted that Sri Lanka’s economic indicators had experienced significant fluctuations in recent years due to a series of major challenges, including the 2019 Easter Sunday attacks, the COVID-19 pandemic and the 2022 economic crisis. He also held an extensive discussion on the key sectors that require greater attention and strategic interventions to accelerate economic growth and enhance the Northern Province’s contribution to the national economy.
The discussion focused on the following key sectors and the strategic plans proposed to strengthen their contribution to the Northern Province’s economic growth:
*Agriculture*: Rather than expanding rice cultivation by bringing new lands under production, the discussion emphasized improving the productivity and efficiency of existing paddy lands through the adoption of modern agricultural technologies. It was also proposed to expand the cultivation of coarse grains, pulses, fruits, and vegetables. In addition, increasing domestic milk and meat production was identified as a key priority, with the potential to reduce dependence on imports and save approximately US$400 million currently spent annually on milk powder imports.
*Value Addition in Agriculture*: Farmers can significantly increase their income by processing harvested agricultural produce into value-added products instead of selling it in its raw form. Encouraging value addition through processing, packaging, and product development will enhance profitability, reduce post-harvest losses, and generate greater economic returns for the agricultural sector.
*Fisheries*: The fisheries sector contributes approximately 3.7 percent to the economy of the Northern Province. The discussion highlighted the need to further promote marine fishing, freshwater fishing, and sea cucumber farming to enhance the sector’s contribution to economic growth.
*Information Technology and Tourism*: The current contribution of these sectors to the economy remains relatively low, with the information technology sector accounting for 1.12 percent and the tourism sector contributing 0.3 percent. The discussion emphasized that the development of infrastructure facilities and the promotion of public-private partnerships are essential to strengthen these sectors and enhance their economic contribution.
*Renewable Energy*: The discussion highlighted the potential to increase electricity generation by utilizing the year-round availability of sunlight in the Northern Province. It was proposed to install rooftop solar power systems on government buildings and introduce battery storage facilities to enhance renewable energy generation and ensure a more sustainable energy supply.
*Agriculture and Data-Based Planning*: The discussion highlighted that during periods of high production, farmers often fail to receive fair market prices, while intermediaries gain higher profits. As a solution, it was proposed to establish value addition centers and strengthen cooperative systems to ensure better returns for farmers.
It was also emphasized that access to accurate and updated economic data, particularly digitized data, is essential for effective planning and decision-making. Furthermore, a programme to train around 800 young farmers in modern agricultural technologies was proposed to enhance productivity and promote innovation in the agricultural sector.
*Project Development and Investment Planning*: It was decided during the discussion to prepare detailed project reports and investment proposals for each identified sector, including agriculture, fisheries, livestock, and small-scale industries, and submit them to the Finance Commission by August. These proposals are expected to support targeted investments and accelerate economic development initiatives in the Northern Province.
The special discussion was attended by the Secretary to the Governor of the Northern Province, the Secretary to the Provincial Ministry of Agriculture of the Northern Province, the Dean of the Faculty of Agriculture of the University of Jaffna, the former Head of the Department of Mathematics and Statistics of the Faculty of Science, University of Jaffna, the Coordinator of the Advisory Committee of the Hon. Governor of the Northern Province, Professor Vamshi and Associate Professor Sripath, Professors of Economics at the University of Massachusetts – USA, the Deputy Chief Secretary – Planning of the Northern Province, the Additional District Secretary (Land) of the Vavuniya District Secretariat, the Deputy Director and Assistant Directors of the Office of the Deputy Chief Secretary (Planning), the Assistant Director of Planning of the Mullaitivu District Secretariat, Deputy Directors of Statistics from all five districts, the Private Secretary to the Governor and other officials.
