Industry & Retail
From The Report: Sri Lanka 2017
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Sri Lanka’s commitment to being conducive to private-sector business development is reflected in its marked orientation towards trade and investor-friendly encouragement of foreign direct investment. Building on its strategic location at the gateway to India and between the Middle East, Africa and South-east Asia, the government of Sri Lanka is pushing an agenda of open and free-market economic policy to promote and expand trade and economic links, with the ultimate goal of becoming a regional trade centre. An up-and-coming middle class with disposable income and a preference for spending over saving, in addition to a strong economy with mounting tourism receipts and few restrictions on foreign investment, make Sri Lanka a favourable destination for retail investors of all stripes.

This chapter contains interviews with Indira Malwatte, Chairwoman, Sri Lanka Export Development Board; Ashok Pathirage, Chairman and Managing Director, Softlogic Group; and Dilith Jayaweera, Chairman, George Steuart Group.

Articles from this Chapter

Overview

Gearing up: Efforts have been made to modernise the sector and open markets
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Sri Lanka’s commitment to being conducive to private-sector business development is reflected in its marked orientation towards trade and investor-friendly encouragement of foreign direct investment. Building on its strategic location at the gateway to India and between the Middle East, Africa and South-east Asia, the government of Sri Lanka is pushing an agenda of open and free-market economic policy to promote and expand trade and economic links, with the ultimate goal of becoming a regional…

Interview

Bright path forward: Indira Malwatte, Chairwoman, Sri Lanka Export Development Board, on boosting exports and small businesses
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Interview: Indira Malwatte What sectors do you expect will increase export revenue over the next 18 months? INDIRA MALWATTE: Exports are one of the main pillars of growth for any economy, and today Sri Lanka pays the price for not prioritising this element in the last decade. Exports’ percentage of GDP has been in decline from more than 30% in the mid-1990s to around 15% at present. In this context, trade-and investment-based reforms aimed at improving productivity, trade facilitation and more…

Interview

High potential: Ashok Pathirage, Chairman and Managing Director, Softlogic Group, on growth opportunities in the retail market
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Interview: Ashok Pathirage What strategies are in place to advance Sri Lanka’s retail market against regional competitors? ASHOK PATHIRAGE: The global retail industry is dynamic and the Asia region plays a strong role in retail leadership initiatives. Organised retail trade and regional branded goods are an important part of the global retail transition. Sri Lankan retailers are more strategic in balancing out their long- and short-term goals associated with product, brand and market development,…

Analysis

In the fast lane: Retailers see rising demand for fast-moving consumer goods
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Emerging Asian markets have had a significant impact on the growth of the fast-moving consumer goods (FMCG) segment. The region’s FMCG consumers pack a powerful punch: around a third of Nestlé and Procter & Gamble’s global sales growth between 2008 and 2014 came from emerging Asia, according to Euromonitor data. Indeed, for both large foreign and smaller domestic FMCG firms, participation in the region’s FMCG segment requires a long-term view when it comes to investment and presence,…

Interview

Talking shop: Dilith Jayaweera, Chairman, George Steuart Group, on modernising retail and promoting e-commerce
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Interview: Dilith Jayaweera How would you characterise the challenges that are currently facing the retail sector? DILITH JAYAWEERA: Recently, the retail sector in Sri Lanka has been dealing with a lack of consistency in government policies and regulations, and haphazard changes are making strategic planning difficult. The problem is exacerbated by a fluctuating exchange rate which creates parity issues that negatively impact the sector. We are currently witnessing a movement away from conventional…

Analysis

Clothing the world: New measures aim to bolster the textiles and garments sector
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As the country’s largest export sector, the garment and textiles industry maintains high ethical standards and a recognised record of respectable labour practices. In this, the apparel sector caters to largely higher-value, niche products. Indeed, Sri Lanka’s major textiles producers such as MAS Fabrics serve some of the best-known apparel brands in the world. Nike, GAP, H&M and Marks & Spencer are just some of the major international chains active in the country. Supply &…

Overview

More choice: The rapidly growing retail sector is attracting new entrants as the number of malls increases
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An up-and-coming middle class with disposable income and a preference for spending over saving, in addition to a strong economy with mounting tourism receipts and few restrictions on foreign investment, make Sri Lanka a favourable destination for retail investors of all stripes. Nevertheless, the sector does face some near-term barriers to growth. These include limited quality retail space in the capital and unstable consumer confidence. In the medium term there is a need to build up the…