Industry & Retail
From The Report: Sri Lanka 2016
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Buoyed by its powerhouse apparel, tea, coconut, rubber and gemstone segments, Sri Lanka’s industrial sector has recorded significant expansion in export volumes and earnings in recent years. Although rubber and tea have been affected by falling global commodities prices and volatility in key export markets, rising demand for value-added products, a specialty of the sector, is expected to offset any near-term losses, while growing opportunities for foreign direct investment demonstrate the country’s positive long-term growth prospects. Investment in transportation and increasingly pro-business policies are also expected to help the sector maintain its upwards trajectory, as will a spate of planned free trade agreements and the reinstatement of key trade concessions with the critical markets of the US and the EU.

This chapter contains an interview with Mahesh Amalean, Chairman, MAS Holdings.

Articles from this Chapter

Overview

On track: Pro-business policies and investment incentives bolster the sector’s long-term prospects
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Buoyed by its powerhouse apparel, tea, coconut, rubber and gemstone segments, Sri Lanka’s industrial sector has recorded significant expansion in export volumes and earnings in recent years. Although rubber and tea have been impacted by falling global commodities prices and volatility in key export markets, rising demand for value-added products, a specialty of the sector, is expected to offset any near-term losses, while growing opportunities for foreign direct investment (FDI) demonstrate the…

Interview

Changing dynamics: OBG talks to Mahesh Amalean, Chairman, MAS Holdings
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Interview:Mahesh Amalean Are high standards in apparel specific to any country, and are retailers moving towards them? MAHESH AMALEAN: It is incorrect to say that a specific country does not have high standards. Within any given country you have some manufacturers that meet fairly high standards and others who do not. However, there are countries where a large majority of companies may not hold up high standards and therefore some of the more iconic brands have decided not to do business…

Analysis

A key strength: A focus on niche products and apparel manufacturing exports has reached a new level of intensity
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An apex industry and the largest foreign exchange earner, Sri Lanka’s apparel manufacturing sector stands as one of the country’s greatest strengths. A focus on quality and value addition over volume and cheap production has seen the industry record years of growth in exports and revenues, particularly in the lingerie, swimwear and sportswear segments, while a reputation for maintaining stringent ethical and environmental standards makes the country a preferred source market for a host of major…

Analysis

Bouncing back: Raw materials have been declining, but rubber-based products remain a strong economic driver
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Sri Lankan rubber has grown from humble roots as a small colonial export to the second most important plantation crop and one of the most successful value-added industries. One of the top rubber producing nations globally, Sri Lanka is also the world leader in solid tyre exports, while other niche products hold a sizable portion of the global market, considering the island’s relative size. This aside, challenges in recent years, both global and local, have weighed heavily on the industry’s expansion…

Analysis

Setting up shop: Retail has become one of the fastest-growşing sectors and is being driven by sophisticated consumer groups
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Despite a significantly smaller consumer base than in neighbouring India, the retail sector in Sri Lanka has recorded formidable growth in recent years. This is the result of strong macroeconomic fundamentals, rising incomes, high levels of household expenditure and shifting consumer trends. Retail space in shopping malls is in critically short supply, while a burgeoning e-commerce segment is slated to meet substantial, untapped consumer demand. With supermarket and hypermarket expansions also on…