Inadequate industrial infrastructure facilities at regions compared to major cities has resulted a large gap between Colombo & suburbs and the regions in socio - economic development of the country. The data reveals that 80% of the country's industrial units are located within the Western Province itself. Therefore Ministry of Industrial Development had launched the Regional Industrial Estate (Industrial Parks) Development Programme, to promote regional industrialization and to disperse the industrial development activities throughout the country.  With the introduction of Regional Industrial Development Programme, extension of industries which were focused only to Colombo and suburbs for a number of decades have now gone up to rural areas in a considerable level with the development of 15 industrial estates throughout the country, where the Ministry assists the investors to obtain suitable lands with the necessary infrastructure facilities to setup their industrial units in these regions.

During the recent years, further action has been taken to upgrade the infrastructure facilities in the existing Industrial Estates to encourage the private sector to setup more new industries in the industrial estates. Regional Industrial Service Committees, established under the Industrial Promotion Act No 46 of 1990 played a major role along with the Regional Directors and the staff of Regional Industry Service Centers to full fill the demand of investors and recommending suitable lands to established industries in these industrial estates.

Total land extent developed at the end of 2005 under this programme is around 395 acres, which have been divided to 293 land plots where 229 land plots has been already allocated to the industrialists and 146 industrial units were in commercial production creating 12,343 employment opportunities. Another 39 industrial units are in different stages of construction of their factory buildings.

In the Budget 2005, it was proposed to set up  300 industries all over Sri Lanka with at least one industry for each Divisional Secretary area to reduce economic disparities in rural level. Any company setting up a new industry in any district other than Colombo and Gampaha under this programme with a capital investment not less than Rs. 30 mn invested within 02 years from April 2006 in plant, machinery and buildings and also providing direct employment not less than 200 persons will get 5-10 year tax exemption and exemptions for Custom Duties and Value Added Tax etc. Foreign investors as well as local investors are invited to invest in this programme.