Jaffna, a vibrant economic hub

By Lalin Fernandopulle

The economy and lifestyle of the people in Jaffna have improved tremendously following new investments and business ventures launched in the region, said Jaffna Chamber of Commerce and Industries, President, K. Poornachandran.

He said that many local and foreign investors have shown interest in setting up joint ventures in the North due to the conducive business environment prevailing in the region. A number of private sector companies has set up ventures in the North which is emerging as a vibrant business hub in the country.

“People expect many positive changes following the Provincial Council elections next month,” Poornachandran said.

“We need more private sector companies to invest in Jaffna which is a promising region with enormous potential for businesses,” he said.

Economic growth in the North was severely hampered by the decades-long battle against terrorism. The region is rapidly reviving and opening up for new ventures that would fast track development and provide a large number of jobs to youth in the area.

Agriculture and fisheries industries have been the lifeblood of the Northern economy, providing employment to a large number of people. The palmyrah industry has been revived and new employment opportunities have emerged following a stable market for palmyrah products.

The high cost of energy and high interest rates have stifled new initiatives and business growth in the North.

The Chamber has called upon the officials to reduce energy prices and lending rates to boost economic growth in the region. The small and medium entrepreneurs are the most affected sector due to the high energy prices and interest rates.

The renovation of the A9 highway and resumption of transportation has increased the flow of goods to the North. Poornachandran said that the flow of goods to the North will help reduce the prices of commodities in the region. He said the flow of goods to the North is inadequate.

An official of the Traditional Industries and Small Enterprise Development Ministry said that the Jaffna railway station will be opened by the end of the year and train travel will be back on track. He said that the Kilinochchi railway station will be opened next month. Work on the Northern Railway Station commenced with an investment of around Rs. 89 million under the Uthuru Mithuru program.

The Northern railway line links the North and the South and the laying of tracks is nearing completion. This railway track is around 159 kilometres comprising around 85 bridges, 16 main railway stations and 12 sub-stations. Commuters eagerly look forward to travel in the Yal Devi which built ties among the North and the South.