By attracting investments through a public–private partnership and fully recommissioning the Paranthan Chemical Factory, our diaspora relations living abroad should come forward to invest in such sustainable productive ventures. This is an excellent opportunity for you, stated the Honorable Governor of the Northern Province, N. Vethanayahan, extending his invitation.
To restart the Paranthan Chemical Factory, which was closed in 1985 due to the war situation, the government has initially allocated Rs. 500 million. Through this funding, basic infrastructure facilities are to be established within nine months, and with an investment of approximately Rs. 6.3 billion, the factory is expected to be fully established within 30 months through a public–private partnership.
The foundation stone laying ceremony for this project was held today – on Wednesday 21 January 2026 evening, at the Paranthan Chemical Factory premises. The Governor made the above remarks while participating as the chief guest and addressing the gathering.
He further stated:
“On a historically significant day that should be inscribed in golden letters in the industrial history of the Northern Province, we have gathered here today. After nearly 40 years, the soil of Paranthan stands at a starting point where it will once again reclaim its former glory. Established in 1954 and later nationalized, this institution once stood as a major pillar fulfilling the country’s chemical requirements.
The government led by His Excellency the President Anura Kumara Dissanayake is giving special attention to the Northern Province. Whether it is the Elephant Pass salterns or the Paranthan Chemical Factory whose foundation stone is laid today, all these are lifelines of the northern economy. The government is firmly committed to reviving them.
When this factory was operational, we produced chlorine, caustic soda, and hydrochloric acid on our own soil, through the labor of our own people. However, for the past 40 years, we have been importing all these by spending dollars. Today, that situation is going to change. In the future, after meeting our domestic needs, Paranthan will become a center that earns dollars by exporting the surplus.
In the future, this factory will operate through a public–private partnership. At this juncture, I make an open appeal to our diaspora relations living abroad. Instead of merely sending money for the daily consumption needs of our people, you should come forward to invest in such sustainable productive ventures. Many of our people are waiting to invest in our homeland. Come on, join hands with us.
One of the three major investment zones to be established in the North will be located in the Paranthan area. This will create thousands of direct and indirect employment opportunities for the youth of the Northern Province, especially young men and women of the Kilinochchi District,” he said.
The event, which commenced with blessings from leaders of all religions, became an emotionally moving occasion when the name board and the foundation stone for the factory were unveiled and laid by former employees of the Paranthan Chemical Corporation.
The welcome address was delivered by the Chairman of the institution, S. Nesaraja. This was followed by addresses from the Hon. Minister of Industry and Entrepreneurship Development, Sunil Handunnetti; the Hon. Minister of Fisheries, Aquatic and Marine Resources, R. Chandrasekhar; and the Secretary to the Ministry of Finance.
Also present at the event were Hon. Member of Parliament K. Ilankumaran; the Secretary to the Ministry of Industry and Entrepreneurship Development; Kilinochchi District Secretary S. Muralitharan; Kandavalai Divisional Secretary T. Pirunthakaran; Karachchi Pradeshiya Sabha Chairman A. Velamalikithan; the heads of the Board of Investment and the Export Development Board; members of the corporation’s Board of Directors; and members of the general public.
