The University of Moratuwa has conducted a common initial environmental examination on proposed industries in the Hambantota Port's Industrial Zone and the study has found that coal related activities should not be done in the area. The study has recommended petroleum based industries and manufacturing industries among others.

Sri Lanka Ports Authority has already prepared the business plan in order to identify the business ventures that could be undertaken under the project.

The required infrastructure facilities such as road network, electricity supply, water supply, waste water treatment, etc. for the development of industrial zone are undertaken by the Ports Authority and works are in progress. The government plans to undertake all ventures as public private partnership.

Laugfs Terminals Limited has already entered in to a Business Venture Agreement with Ports Authority and is currently progressing with construction works at the site.

The Cabinet of Ministers has approved a proposal presented by the Minister of Ports and Shipping Arjuna Ranatunga to appoint a Cabinet Appointed Negotiating Committee and a Project Committee to prepare and call for proposals, evaluate and to discuss with investors.