📦 Sri Lanka's Corrugated Carton Industry Faces Severe Cost Pressures

Sri Lanka’s corrugated carton manufacturers are confronting critical sustainability challenges driven by persistent global supply chain disruptions, geopolitical tensions, and📦 Sri Lanka’s Corrugated Carton Sector Faces Severe Cost Strain Sri Lanka’s corrugated carton industry is under growing financial pressure due to persistent global supply chain disruptions, geopolitical tensions, and rising local operating expenses. • Key Cost Drivers & Inflation: - Prices of key paper grades (Kraft Liner, White Liner, Test Liner, and Medium) have jumped by 30% to 50%. - Escalating operational expenses across energy, transport, chemicals, starch, inks, labor, and machinery maintenance. • Internal Cost Absorption: - Paper constitutes the largest share of production costs. - Manufacturers initially absorbed cost hikes via efficiency gains, waste reduction, energy management, and transport optimization, but these measures can no longer offset continuous increases. • Broader Economic & Sector Impact: - Serves as critical packaging infrastructure for core national export and domestic supply chains, including tea, apparel & textiles, food & beverage, agriculture, and pharmaceuticals. - Continued pressure threatens export competitiveness against global rivals with cheaper raw materials. • Industry Outlook: - Sector leaders signal that responsible price adjustments are now necessary to ensure financial viability, product quality, and supply continuity. - Requires coordinated support among paper suppliers, manufacturers, exporters, and policymakers to safeguard national manufacturing output.