The government’s ambitious programme to establish five technology parks across Sri Lanka has hit a major barrier, as projects in Galle and Kurunegala — launched in 2021 and touted as key to the nation’s digital-economy push are now abandoned and racking up huge financial losses.
According to government audit data, construction at both parks was suspended as of 5 February 2024, the date of a physical inspection of the sites.
The parks were to be delivered under the umbrella of the Techno Park Development Company (Pvt) Ltd. (TPDC), a state-owned entity created by the cabinet to set up "commercial enterprise" techno parks in five districts, namely Galle, Kurunegala, Anuradhapura, Kandy and Batticaloa.
Clause 14.6 of the contracts for the Galle and Kurunegala parks stipulates hefty liquidated damages for delays. The Galle project carries a penalty of Rs. 236.36 million; Kurunegala’s is Rs. 416.8 million totalling a potential government loss of Rs. 653.16 million.
In addition, outstanding payments are piling up: as at 31 March 2022, Rs. 950.6 million was still owed to the Galle park contractor. Engineering consultants for Galle and Kurunegala are owed Rs. 18.17 million (since April 2022) and Rs. 36.19 million (by end 2023) respectively.
The initiative envisaged techno parks over 30-acre sites that would host R&D labs, software development firms, incubators, and advanced manufacturing. For example:
Galle’s 31-acre site in Walahanduwa, Akmeemana, planned a built-up floor area of 45,684 m² with office units, restaurants and clubhouse.
Kurunegala’s site in Rathgalla offered 14 acres (11 + 3) and a proposed floor area of 31,147 m².
According to the 2021 budget, the first two parks (Galle & Kurunegala) were already under way, with three more expected by 2023 in Nuwara Eliya (Mahagasthota), Kandy (Digana) and Habarana.
The objective: to build a “techno-entrepreneurship driven economy,” tapping Sri Lanka’s human resources and strategic locations.
Despite the optimism, progress has stalled. According to news reports, by mid-2024 the parks had been abandoned and the projects flagged for revival under the direction of Dinesh Gunawardena (Prime Minister) who initiated steps to rescue the Galle and Kurunegala sites.
Key issues include unclear timelines, weak project management, delayed contractor performance and mounting liabilities.
The lapse comes at a time when Sri Lanka is seeking to strengthen its digital economy and technology export base. Failure to realize these infrastructure projects undermines investor confidence, leaves committed capital stranded and jeopardises the strategic goal of technology-driven growth. Meanwhile, mounting penalty and unpaid-billing figures add strain on public finances already under pressure.
Reviving such large-scale infrastructure requires robust governance, accountability mechanisms and clear timelines. The TPDC’s mandate to list on the Colombo Stock Exchange and allow private investors (as outlined in the 2021 cabinet decision) may need stronger enforcement.
More importantly, contracts must include enforceable milestones, and project oversight must be professionally sustained if the techno park strategy is to deliver value.As Sri Lanka re-positions itself for the Fourth Industrial Revolution, the techno park programme’s stalled start serves as a caution: bold vision must be matched by disciplined execution. The nations’ technology aspirations risk being held back by idle buildings and overdue invoices unless urgent corrective action is taken.