I normally do not like my articles to sound like advertorials. I cannot help it this time. I must start by admitting my personal liking for Kurunegala, a travel destination I rank alongside Jaffna. My appreciation for these two districts lies in their tangible sense of rapid development. Each subsequent visit unveils a distinctly transformed environment, marked by flourishing businesses, an energetic populace, and a constant influx of novel advancements. Significantly, both districts have consistently achieved the highest growth rates recorded nationally, underscoring their vibrant progress.
Kurunegala City, often referred to as the “City of the Elephant Rock” due to its distinctive geological features, functions as a dynamic urban centre and the administrative capital of the district by the same name within the North Western Province. Its strategic location, approximately 94 kilometers from Colombo, provides crucial connectivity and accessibility, solidifying its role as a vital link in Sri Lanka’s national economic network.
The district’s present economy is characterised by a robust and diversified structure, with established strengths in agriculture, manufacturing, and services, complemented by burgeoning real estate and tourism sectors. It is also a consumer hub, sometimes offering more product choices than available under one roof in Colombo. Kurunegala might not be the perfect romantic destination for tourists, local or foreign. Anuradhapura, Polonnaruwa or Kataragama may be more appealing to those with historical and religious interests. It is easy to overlook Kurunegala’s significant historical significance. Ancient capitals Kurunegala (Ethugala), Dambadeniya, Yahapuwa, and the ancient city Panduwasnuwara are among the historic sites located in the Kununegala area, though they do not attract numbers they really could. The provincial administration ought to do more research in this area.
This discussion is more on the economic value. The North Western Province, with Kurunegala at its core, demonstrated its significant economic weight by contributing the second-highest share (11.2%) to Sri Lanka’s nominal GDP in 2022 (most recent data available, this might have improved) surpassed only by the Western Province (43.4%). This substantial contribution underscores Kurunegala’s pivotal role as a key economic anchor and an escalating growth pole outside the traditionally dominant Colombo metropolitan area. The economic recovery in Sri Lanka, marked by a 5.0% GDP growth in 2024, provides a strong foundation for Kurunegala’s continued development.
Agriculture forms the backbone of Kurunegala’s current economy, with traditional strengths in coconut, rubber, and paddy cultivation. The district is a major coconut-growing region within Sri Lanka’s “coconut triangle”. A significant shift is underway towards modernising this sector and diversifying into higher-value, export-oriented crops, aiming to increase productivity and earnings.
Provincial decision makers may discover that agri-development has a future as well, despite the trend away from agriculture and into much greener pastures. This is the ideal laboratory for experiment: still within the border of wet and dry zones and having adequate room. The adoption of climate-smart agriculture (CSA) and advanced technologies is proving critical for enhancing productivity and building resilience. Initiatives include rainwater harvesting, crop diversification, livestock integration, mulching, and the use of climate-resilient crop varieties. Furthermore, there is a push to leverage emerging technologies such as the Internet of Things (IoT), artificial intelligence (AI), drones, and robots for improved farm management, pest control, and resource optimisation. Not that technology isn’t in use. For instance, technology adoption for managing major coconut pests like black beetle and red weevil has reached over 60% among larger growers in Kurunegala, though awareness still needs strengthening for smaller farmers. Climate change adaptation projects in dry zones, including Kurunegala, have focused on raising awareness, introducing adaptation measures, and improving livelihoods through drought-resistant crops and home gardening innovations. These efforts are designed to strengthen access to reliable climate services and enable vulnerable communities to plan and implement targeted adaptation measures.
Significant investments are also transforming the food processing industry in Kurunegala, adding substantial value to agricultural produce. A new, state-of-the-art Greenfield dairy processing facility in Ibbagamuwa, Kurunegala, is scheduled for completion by June 2026. This facility is designed to be environmentally sustainable, incorporating water recycling systems, waste management solutions, and energy-efficient processing technology, with aspirations for a sero-carbon footprint. It will initially process 50,000 to 80,000 liters of milk daily, sourced from farmers across the Northwestern Province, with a full capacity of 300,000 liters. This expansion is expected to create over 100 direct jobs and 200 indirect employment opportunities, strengthening local procurement networks and providing income stability for dairy farmers. Similarly, another multinational firm has invested over LKR 2 billion in its Kurunegala factory to expand the manufacturing capacity of malted food products. This factory, operational since 1984, produces over 90% of their products sold in Sri Lanka, supporting the livelihoods of more than 25,000 dairy and coconut farmers and directly employing over 800 individuals. These investments highlight a strategic move towards higher-value agricultural products and enhanced food security within the region.
The manufacturing sector in Kurunegala, even now, is a vital economic pillar, significantly driven by SMEs in the Kurunegala district, who are engaged in diverse businesses, including coconut products, rubber-based products, garments and apparels, cement, clay pots, housing, and real estate. These small industries are acknowledged as a major source of employment and livelihood in rural areas, playing a crucial role in economic development by generating employment opportunities, mobilising domestic savings, and alleviating poverty. SMEs contribute more than 70% to Sri Lanka’s export sector GDP.
New manufacturing investments further underscore Kurunegala’s growing industrial appeal. A leading new energy vehicle (NEV) manufacturer, inaugurated its comprehensive 3S (Sales, Service, and Spare parts) facility in Kurunegala this year. The choice of Kurunegala for this expansion addresses the growing demand for sustainable mobility solutions in a region with diverse automotive needs, positioning the brand to better serve customers seeking eco-friendly vehicle options. These developments illustrate a diversification beyond traditional agricultural processing into modern, higher-value manufacturing.
Kurunegala’s property market is experiencing significant dynamism, driven by increasing urbanisation and infrastructure improvements. New housing projects are being introduced, offering modern housing and commercial spaces with affordable and accessible living options. Strategically located near the Central Expressway Interchange, these developments emphasise a Transit-Oriented Development (TOD) model that maximises land use for residential, commercial, and leisure activities within walking distance of public transport. This approach aims to provide immediate access to jobs and promote sustainable mobility, aligning with the city’s future development plans.
Urban development initiatives are also shaping Kurunegala’s urban fabric. The Urban Development Authority (UDA) is involved in mixed-use development projects, such as a proposed project for a 0.37 Ha land parcel in Kurunegala Town Centre, with an estimated value of USD 4 million, focusing on middle-rise mixed development with prominent housing on a Public-Private Partnership basis. Urban growth modeling for Kurunegala indicates a marked increase in urban areas, with a projected 72% increment from 2027 to 2037, reflecting rapid urbanisation. This expansion, while a sign of economic vitality, also highlights the need for careful planning to manage urban sprawl and its environmental consequences.
Furthermore, there is a push to leverage emerging technologies such as the Internet of Things (IoT), artificial intelligence (AI), drones, and robots for improved farm management, pest control, and resource optimisation.”
The Central Expressway (CEP) is a monumental infrastructure project designed to link Colombo with Kurunegala and Kandy, providing a faster alternative to existing highways and significantly enhancing connectivity across the country. The project is divided into four stages, with Stage 2, connecting Meerigama to Kurunegala (40 km), having been completed and opened to the public in January 2022. Stage 4, from Kurunegala to Dambulla (137 km), is currently ongoing.
The completion of CEP segments has a profound impact on Kurunegala’s connectivity and logistics. It positions Kurunegala as a central hub, improving transportation and attracting businesses and investors to the region. This enhanced accessibility is already driving up property values and making Kurunegala an attractive location for real estate investment, particularly as a “Legacy City” with existing infrastructure and a thriving population. The expressway’s development is expected to transform Kurunegala into a major trade and business hub, fostering economic growth and supporting future development.
While the expressway brings significant economic benefits, its construction has also presented challenges, including structural damage to hundreds of houses and environmental concerns such as the loss of wells and valuable lands, highlighting the need for comprehensive mitigation and compensation efforts.
Kurunegala district then has a unique opportunity to become a significant centre for religious and cultural tourism by focusing on two growing hubs: Umandawa and Mahamewnawa. Both sites, led by prominent Buddhist monks, possess immense potential to attract foreign tourists seeking to experience Sri Lankan Buddhist culture firsthand. To fully realise this potential, a strategic partnership between these centres and the provincial government is essential. Such a collaboration would allow for a coordinated approach to promote these sites, enhance visitor infrastructure, and ensure a sustainable and authentic cultural experience for international visitors.
Kurunegala stands as a compelling case study of regional economic dynamism within Sri Lanka’s broader post-crisis recovery. Its strategic location, coupled with proactive government policies and significant private sector investments, has propelled it into a position of prominence within the North Western Province and the national economy. The city’s economic foundations are robust, driven by a modernising agricultural sector that embraces value addition and climate-smart practices, and a diversified manufacturing base heavily reliant on the entrepreneurial spirit of its SMEs. The burgeoning real estate market and a recovering tourism sector further amplify its growth potential, attracting both local and international capital.
The future centrespread is industry. Kurunegala is strategically positioned to evolve into a major industrial hub in Sri Lanka, capitalising on its central location and robust infrastructure. With key road networks like the Central Expressway enhancing its connectivity to major ports and economic centres, the district offers significant logistical advantages for manufacturing and distribution. This, combined with its available land and skilled labor force, makes it an attractive destination for a diverse range of industries.
The district is actively fostering an innovation-friendly environment, as seen in projects like the proposed Kurunegala Techno Park, which aims to draw in high-tech companies and entrepreneurs. By focusing on sectors such as manufacturing, light engineering, and technology, Kurunegala can effectively diversify its economy, drive regional growth, and create new, skilled employment opportunities, positioning itself as a vital industrial centre in the country.
In that sense, Kurunegala is not merely undergoing development; it is actively shaping a model for balanced, sustainable regional growth in Sri Lanka. Its ability to leverage its traditional strengths while embracing modernisation, attract diverse investments, and address critical environmental and social challenges will define its path towards a prosperous and sustainable future, solidifying its role as a key economic powerhouse in the country.
However, Kurunegala’s developmental trajectory is not without its complexities. Environmental challenges posed by climate change, including water scarcity and extreme weather events, alongside the increasing human-wildlife conflicts, necessitate integrated and resilient planning. The city’s commitment to becoming a “Climate Smart City” and implementing sustainable development practices indicates a forward-thinking approach to balancing economic aspirations with environmental stewardship.
Chanuka Wattegama chanuka@hotmail.com is a policy researcher. The ideas expressed are personal.