Growth diagnostic study of Sri Lanka's Northern province

The Growth Diagnostic study of Sri Lanka’s Northern Province explores the region’s untapped economic potential and identifies the key constraints to inclusive and sustainable development. Despite more than a decade since the end of conflict, the province still faces high poverty, underdeveloped infrastructure, and limited industrial growth. Agriculture and fisheries sectors dominate the local economy but operates at subsistence levels, lacking modern technology, value addition, and access to wider markets.

The study highlights major challenges including poor connectivity, climate change risks, and limited access to finance - especially for women-led enterprises. Low women and youth participation in the labour force further hampers development, largely due to social norms and economic exclusion. However, the region holds promise, particularly through the growth of informal SMEs and untapped investment potential across key sectors.

The study offers detailed sectoral and value chain strategies alongside policy recommendations targeted at the central and northern provincial Governments. It also presents a practical implementation roadmap designed to guide the transition from post-conflict recovery to inclusive, long-term economic growth, aiming to unlock the full potential of the northern province.