Industry & Sector News
View all(81)Sri Lanka Forms First Advisory Council for Event Management 📈
Sri Lanka has established its first-ever 25-member advisory council for the event management sector to drive structured growth and international competitiveness. This marks the first time the Ministry of Industries has formed a dedicated body for a service-oriented industry. • Economic Impact & Employment The sector generated approx. Rs. 60 Bn in revenue in 2025. It provides direct employment to 30,000 people and supports the livelihoods of over 400,000 families through indirect services and SMEs. • Growth Targets & Strategy Stakeholders aim to expand annual revenue to Rs. 250 Bn, leveraging a global market growing at 10-14% annually. The council, chaired by Saliya Weerasekara, will focus on positioning Sri Lanka as a top South Asian event destination. • Key Industry Priorities The council has identified five reform areas: Streamlining provincial and national permit processes. Protecting intellectual and creative rights for local talent. Establishing a National Events Calendar. Improving domestic air connectivity and developing international-grade venues in Colombo. • Context The move integrates event management with the national tourism strategy, emphasizing the export of local creative services and craftsmanship to the global stage.
📈 AMW Dominates Sri Lanka's Class A SUV Segment in 2025
Associated Motorways Ltd (AMW), a member of the Al-Futtaim Group, has emerged as the clear leader in the country’s Class A SUV segment for 2025, securing a commanding 55% market share. • Overall Performance: Out of a total 6,860 units sold in the Class A SUV category, AMW recorded 3,774 units—the highest by any single distributor in the segment. • Model Breakdown: • Nissan Magnite: Captured approximately 40% market share. • Suzuki Fronx: Contributed a further 15% to the total. • Market Context: Sales momentum accelerated in the second half of 2025, driven by demand for fuel efficiency, safety, and value. The segment is defined by vehicles under 4,000 mm in length. • Strategic Impact: The achievement underscores the recovery of the automotive sector following the relaxation of import restrictions. AMW leverages a 75-year local presence and the global expertise of the Al-Futtaim Group to maintain its leadership. _Note: Figures are based on data from the Department of Motor Traffic (RMV)._
### 📈 Productivity Spotlight: Practical Ergonomics for Profit
Senior executives in Sri Lanka are urged to adopt ergonomics—designing work to fit the human body—as a strategic tool to combat rising costs and labor turnover. Moving beyond "luxury furniture," the focus is on optimizing high-stakes sectors for 2026. • Economic Impact & Gains Productivity: Proper work design reduces fatigue, leading to faster output and fewer defects. Cost Savings: Minimal capital expenditure can yield high returns by reducing medical claims, absenteeism, and the "silent drain" of musculoskeletal injuries. Retention: Addresses the "3Ds" (Difficult, Dirty, Dangerous) that drive staff turnover in manufacturing and plantations. • Sector-Specific Insights Apparel & Textiles: Operators face risks from forward-leaning postures and repetitive movements. Simple tweaks to workstations and pedal positioning can boost endurance. ICT/BPM & Banking: High risk of neck, shoulder, and back pain. Adjusting monitor heights and keyboard placement is critical for sustained performance in these growth sectors. Logistics & Construction: Manual lifting remains a primary cause of injury; mechanization or mechanical aids are essential for long-term labor stability. • Industrial Success Case A Sri Lankan food processing plant increased output and slashed back pain complaints by simply raising worktables by 150mm—a negligible cost for significant gain. • Key Recommendations Implement micro-breaks to allow for faster biological recovery. Utilize task-specific lighting and noise control to reduce errors. Involve workers in design to leverage "tacit knowledge" for continuous improvement.
LAUGFS Gas Hikes Domestic LPG Prices 📈
LAUGFS Gas PLC has announced an upward price revision for its domestic liquefied petroleum gas (LPG) refills, effective from midnight, 6 February 2026. The adjustment follows ongoing volatility in the local energy market. • Price Revision Details • 12.5 kg Cylinder: Increased by Rs. 80; new price is Rs. 4,330 (approx. 1.88% increase). • 5 kg Cylinder: Increased by Rs. 32; new price is Rs. 1,742 (approx. 1.87% increase). • Market Impact • The revision applies to domestic consumers islandwide and impacts household cooking costs for February 2026. • This follows a previous hike in January 2026, where prices rose by Rs. 150 for the 12.5 kg category, reflecting a continued trend of price adjustments in the energy sector.
Sri Lanka Positions as Regional Marine Hub at 9th International Boat Show 📈
The Boat and Marine Show 2026, held at Port City Colombo from Jan 30 to Feb 1, has concluded as South Asia’s premier marine industry event, signaling a strategic push for nautical tourism and export promotion. • Event Overview The 9th edition saw a significant expansion since its 2008 inception, organized by the Chamber of Marine Industries and Sri Lanka Tourism with EDB support. It functioned as a dual-purpose platform for trade and lifestyle, targeting high-net-worth individuals and global investors. • Sector Highlights • Boat & Shipbuilding: Showcased local and international manufacturers, focusing on yachts, composite materials, and repair solutions. • Marine Tourism: Highlighted diving, snorkeling, and whale watching to diversify the tourism portfolio beyond traditional land-based attractions. • Infrastructure: Discussions centered on marina development and yacht charter services to establish Sri Lanka as a regional maritime center. • Global Participation International delegations attended from key markets including India, Singapore, South Korea, Germany, the UK, and the Middle East. This provided local exhibitors direct access to global buyers and potential joint-venture partners. • Strategic Impact The government has designated this event as a priority platform for investment attraction. By leveraging its marine biodiversity and shipwrecks, Sri Lanka aims to enhance employment in the marine sector and drive sustainable ocean-based economic growth.
FACETS Sri Lanka 2027: Premier Gem Showcase Returns to Cinnamon Life 💎
The Sri Lanka Gem and Jewellery Association (SLGJA) has announced the 34th edition of FACETS Sri Lanka, scheduled for January 4–6, 2027. Following the success of the 2026 event, the exhibition returns to Cinnamon Life at City of Dreams Sri Lanka to further solidify the nation’s status as a global hub for coloured gemstones. • Key Leadership: Shezmin Mansoor has been appointed as the new Chairman for the 2027 edition, succeeding Armil Samoon. Mansoor brings extensive supply chain expertise and deep roots in the Ratnapura gem trade. • Strategic Focus: The 2027 showcase will prioritize international buyer engagement, SME support, and the promotion of ethical and sustainable practices within the sector. • Industry Impact: The event serves as a critical platform for miners, manufacturers, and designers, highlighting Sri Lanka's 2,500-year gem heritage while driving regional trade. • Venue Advantage: The move to Cinnamon Life has reportedly revitalized the exhibition, resulting in increased international participation and renewed energy for the gem and jewellery industry. Note: Based on current industry announcements.
📈 18th Sri Lanka Islamic Banking & Finance Industry (SLIBFI) Conference
The 18th SLIBFI Conference is set for 12 February 2026 at the Shangri-La, Colombo. Themed _"Strengthening Sri Lanka’s economic story through Islamic Finance,"_ the event highlights the sector's pivotal role in the nation's recovery and its integration into the broader financial landscape. • Strategic Milestones The forum follows a landmark year for the industry, most notably the first-ever listing of a Sukuk (Islamic bond) on the Colombo Stock Exchange by Vidullanka PLC (Rs. 500 million issuance). This is seen as a major step in diversifying Sri Lanka’s capital markets and attracting ethical investment. • Economic Impact & Sectors Discussions will focus on how the Islamic Banking and Finance (IBF) industry serves as a catalyst for GDP growth. Key areas of integration include: Islamic Capital Markets (ICM): Expanding beyond Sukuk to white-listed stocks, unit trusts, and REITs. Real Economy Linkages: The synergy between Islamic Finance, the Halal food industry, and Halal-friendly tourism. Technology: Leveraging ICT/BPM, AI, and Fintech to enhance efficiency and transparency in Shariah-compliant institutions. • Industry Partnerships People’s Leasing & Finance PLC – Al Safa is the Platinum Partner, marking its 20th year in the sector. The event brings together policymakers and industry leaders to align Islamic Finance with national digital and sustainability goals.
## 📈 Sri Lanka Approves Major Battery Storage Project for Solar Integration
The Cabinet has greenlit tenders for independent battery storage systems at 16 electrical substations, a critical move to stabilize the national grid and maximize renewable energy usage. • Capacity & Scale: A total of 160 MW/640 MWh will be installed nationwide, with each substation hosting a 10 MW/40 MWh system. • Implementation Model: The project operates under the Build, Own, and Operate (BOO) model, ensuring private sector participation in energy infrastructure. • Tender Highlights: High investor interest resulted in 153 submissions for the 16 sites following the initial call in July 2025. • Strategic Impact: These systems address the intermittent nature of solar power, allowing for better grid stability and the optimization of clean energy supply. • National Context: This milestone supports Sri Lanka's transition toward a greener power sector, reducing reliance on thermal generation and enhancing energy security.
### 📈 Event Management Sector Gains Official ‘Industry’ Status
The Event Management Association of Sri Lanka (EMA) achieved a historic milestone during its 7th AGM, securing formal recognition for the sector as a government-recognized industry. This move follows Cabinet approval and persistent advocacy to professionalize the events landscape. • Strategic Milestone The event management sector is now officially recognized as an industry, moving beyond a service-based classification. President Saliya Weerasekera noted this opens doors for structured growth, better regulation, and enhanced economic respect. • Economic Impact & Standards The sector will now focus on setting a "Gold Standard" through: Professional Benchmarks: Implementing rigorous industry-wide criteria. Global Integration: Strengthening existing partnerships, such as the EEMA India collaboration, to adopt international best practices. Capacity Building: Ongoing initiatives like the EMA Staff Workshop to upskill the workforce, supporting wider employment and economic diversification. • Leadership for 2026/2027 The newly appointed Executive Committee, led by President Saliya Weerasekera and Vice President Bathiya Jayakody, is tasked with transitioning the sector from mere recognition to becoming a sustainable, world-class ecosystem. • Key Past Initiatives Recognition was bolstered by successful community and professional projects, including the Hadagasma Concert and social responsibility efforts via the Help Apeksha Fundraiser.
### 📉 Education Sector & Tuition Industry Analysis 2026
The Sri Lankan education landscape is undergoing a significant shift as private expenditure rises amidst major state reforms planned for 2026. While the government aims for modernization, the unregulated tuition industry has become a dominant economic force. • Overall Figures & Budgeting 2026 Education Budget: Rs. 704 Bn (approx. US$ 2.3 Bn based on current rates) has been allocated for 2026, marking the highest nominal allocation in history. GDP Share: This represents 2.04% of GDP, remaining well below the long-term national target of 6%. Reform Fund: Rs. 3,000 Mn is specifically earmarked for education reforms launching in 2026, targeting new syllabi for Grades 1 and 6. • The Rising Private Tuition Market Industry Value: The tuition sector is reportedly worth Rs. 122 Bn, evolving from a luxury to a household necessity. Household Spending: 55.6% of total household education expenditure is now directed toward private tuition. Regional Disparities: Dependence on private tutoring is highest in impoverished districts, including Mullaitivu (71%), Hambantota (68%), and Polonnaruwa (67%). • Sector Breakdowns & Challenges State Schools: Over 10,000 government schools serve 3.7 Mn students; however, 95% of surveyed students prefer tuition for better "time productivity." Marketing Intensity: Leading tuition centers allocate 25%–38% of their operational budgets to marketing rather than pedagogical quality. Higher Education: Only 23% of A/L qualifiers currently find placement in state universities, leaving over 130,000 students per year to seek private or international alternatives. _Note: Household expenditure data based on 2019 HIES and 2025/26 provisional budget statements._
Sri Lanka Apparel Sector Eyes Strategic Integration with India 📈
The Sri Lanka Apparel Exporters Association (SLAEA) has identified deeper integration with India’s retail ecosystem and urgent policy reforms as top priorities for 2026 to counter rising regional competition from Vietnam and Bangladesh. • Market Performance (2025) • European Union: +12.48% (Sharpest growth, remains a strategic partner) • Non-traditional Markets: +4.8% • United States: +2.15% (Growth despite tariff uncertainties) • United Kingdom: +0.74% (Benefit expected from the new DCTS tariff-free access) • Strategic Priorities • Seeking quota-free access to the Indian market and integration into regional value chains. • Accelerating ICT/BPM integration through AI-driven operations and automated "smart factories." • Full operationalization of the Eravur Fabric Park to strengthen the domestic supply chain. • Policy & Reform Needs • Urgent implementation of the National Single Window (NSW) to improve the ease of doing business. • Introduction of a national e-invoicing system to manage liquidity following the removal of SVAT. • Securing the renewal of GSP+ to maintain competitiveness against India’s upcoming FTA with the EU. • Sustainability & ESG • Focus on circularity, emission reduction, and compliance with the EU’s Corporate Sustainability Due Diligence Directive (CSDDD). • Investment in workforce development and gender equity to maintain ethical production standards.
📈 Singapore’s Epdesa Wins Petrol 92 Supply Contract
The Cabinet of Ministers has approved awarding a long-term contract to Singapore-based M/s Epdesa Pte. Ltd. for the procurement of Petrol 92 Unleaded, ensuring energy security for the first half of 2026. • Contract Scope: The agreement covers the supply of 5 shipments of petrol. Each shipment will consist of 300,000 barrels (with a ±5% variation). • Timeline: The supply period is set for six months, effective from March 15, 2026, to September 14, 2026. • Procurement Process: Bids were called from registered suppliers of the Ceylon Petroleum Corporation (CPC). Epdesa Ltd. was selected from six competing bidders following recommendations from the Special Standard Procurement Committee. • Strategic Context: This move is part of the state's efforts to maintain a steady fuel supply through competitive international bidding, managing national energy requirements and foreign exchange allocations systematically. _Note: Summary based on provisional cabinet decision data._