Interview:Carl Cruz How can Sri Lanka reverse the trend of sluggish consumption in the short to medium term? CARL CRUZ: From our end, it is quite clear what needs to be done. The government needs to take steps to revitalise rural areas that have been hit hard in recent years. The past two to three years of inclement weather have had a significant impact on the economy, with the prolonged drought…
Interview:Prabhash Subasinghe What effect has regional competition had on players in Sri Lanka’s rubber industry? PRABHASH SUBASINGHE: Sri Lanka is faced with significant competition from large economies in the region, such as India, Malaysia and Thailand, which also specialise in the value-added production of rubber products. The automotive tyre industry is valued at $200bn, so it is no…
Sri Lanka is regarded as one of the best locations for clothing manufacturing in the Asia-Pacific region, driven by its proximity to major textile importing countries and the availability of cheap labour. The clothing industry also has a substantial presence, accounting for 30% of total employment within the manufacturing segment, and over one-third of industrial output annually, with more…
Industrial exports have long played a crucial role in Sri Lanka’s economic output, even during periods of civil strife and macroeconomic instability. Over the years, an emphasis on export orientation has led to greater productivity and employment generation. However, a new wave of instability – characterised by political uncertainty, currency depreciation and rising interest rates – affected…
Sri Lanka’s promising progress with regard to free trade agreements, alongside finance reforms and ambitious growth strategies for manufacturing and ICT, look set to encourage increased foreign direct investment in 2019 – with 2018 having seen the highest levels on record. This should help offset the effects of political and economic volatility, as well at the increasing trade deficit that res
The global economy is entering the Fourth Industrial Revolution (4IR), or Industry 4.0, based on the application of new digital and automated technologies in production processes and service delivery. These changes are bringing emerging markets improved productivity, as well as risks – namely, reshoring and the displacement of human labour by automation. Wealthier emerging markets, such as…
Industrial exports have long played a crucial role in Sri Lanka’s economic output, even during periods of civil strife and macroeconomic instability. Over the years, an emphasis on export orientation has led to greater productivity and employment generation. However, a new wave of instability – characterised by political uncertainty, currency depreciation and rising interest rates – affected…
Sri Lanka’s retail sector has evolved into a powerful driver of growth and opportunity. Over the last decade, fast-paced urbanisation has enticed significant investment in commercial real estate. As such, modern outlets are gradually replacing small informal merchants. While traditional vendors still play an important role in the market, modern convenience stores, hypermarkets and malls are…
Rising demand and an accelerating population shift to major urban centres is driving activity in Sri Lanka’s retail sector, with a series of large-scale developments to launch in the coming months; however, recent pressures on domestic spending power could curb sales in the shorter term. Mid-September saw the opening of Colombo City Centre Mall, a 200,000-sq-foot shopping and entertainment area…
Nandana Ekanayake : Interview How do you see domestic demand for cement evolving in the next 24 months? NANDANA EKANAYAKE: The building industry is experiencing moderate growth in what we call the “bag and bulk segments” – in other words, retail and business-to-business (B2B) sales. The growth in the retail sector is triggered primarily by agricultural income and the housing loans homebuilders…