Industry & Retail
From The Report: Sri Lanka 2019
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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 productivity towards the end of 2018, adversely affecting investment confidence and nullifying some of the nation’s competitive advantages. 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 poised to occupy an even greater share of retail space. This chapter contains an interview with Prabhash Subasinghe, Managing Director, Global Rubber Industries; and Carl Cruz, Chairman, Unilever Sri Lanka.

Articles from this Chapter

Overview

Efforts are ongoing to foster innovation and promote Sri Lanka: as an alternative destination for manufacturing Building a base
OBG
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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 productivity towards the end of 2018, adversely affecting investment confidence and nullifying…

Interview

Prabhash Subasinghe, Managing Director, Global Rubber: Industries, on remaining a competitive player in the global market Focused approach
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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 surprise that its production demand is substantial. As it is a comparatively small economy with limited…

Analysis

Process optimisation: The adoption of high-tech solutions continues to bolster the burgeoning textiles and garment industry
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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 than 1000 garment factories nationwide. A number of Sri Lanka’s “green” garment factories have…

Overview

Into high gear: Economies around the world are preparing for the opportunities and challenges brought about by the next industrial revolution
OBG
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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 the Gulf states, which have the resources to invest in new technologies, and those with more established manufacturing sectors, such as countries in South-east Asia, appear best placed to reap the benefits of the 4IR. Many of these economies are creating…

Overview

Into high gear: Economies around the world are preparing for the opportunities and challenges brought about by the next industrial revolution
OBG
plus

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 the Gulf states, which have the resources to invest in new technologies, and those with more established manufacturing sectors, such as countries in South-east Asia, appear best placed to reap the benefits of the 4IR. Many of these economies are creating…

Overview

Expanding the base: Large urban shopping centres and e-commerce find opportunity, while rural inroads are also set to expand
OBG
plus

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 poised to occupy an even greater share of retail space. Changing demographics and a growing middle…

Interview

Carl Cruz, Chairman, Unilever Sri Lanka, on changing consumer: patterns and opportunities for investment Conscious consumption
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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 particularly noticeable in the north and east of the island. At one point, seven of the nine provinces…