Kankesanturai was the site of fishing and manufacture industry in the 1900s, with the establishment of a cement factory that served the country. The factory commenced operations in 1950 under the Department of Industries and was converted to a Public Corporation in 1956, being named the Kankesan Cement Works. The factory closed its productions in 1991 due to the raging Northern war. In 2016, MPs from the Northern Provincial Council have expressed interest in reviving the plant with a green cement factory concept, using environmentally friendly cement technologies, with Sri Lanka Cement Corporation, the UAE-based Ras Al Khaimah and the South Korean AFKO Group GMEX all linked to invest. Near the cement factory, the Koolair Power Station, a pollutant fuel oil-run thermal power station that was moved to Kankesanthurai following noise complaints elsewhere, was similarly decommissioned following artillery damage during the war.