Business
16 fish canning factories see closures and layoffs thanks to tax policy ‘favourable’ for importers
“We want a level playing field and not subsidies or protectionism’
by Sanath Nanayakkare
Importers of canned fish have completely crowded out local manufacturers because of a government tax policy skewed towards importers, says Sri Lanka Canned Fish Manufacturers Association (CFMA) President Shiran Fernando.
“It is pathetic that the authorities have not cared about it yet although we have officially informed them of the tax anomaly which has translated into an unfair ‘pricing advantage’ for canned fish importers and a curse for local manufacturers,” he says.
“The government charges less tax from canned fish importers allowing them to mark their prices down by about Rs. 125- 150 for a can of fish. And we, the local canned fish manufacturers who pay income tax, VAT, electricity bills, water bills, EPF/ETF etc., cannot compete with importers who pay only a border tax and get away with it. These canned fish importers need only a desk and chair and some money in the bank or a credit facility from foreign canned fish manufacturers. Their business is such a convenient one whereas ours is a constantly dedicated factory process. And the government’s tax policy complements the importers perfectly to bulldoze the local manufacturers of canned fish who have built this industry from zero. We can’t figure out why these highly qualified government authorities don’t get this basic and simple thing,” he says.
When asked to elaborate on their Association’s current concern, Fernando says,” Look, importers pay only Rs. 200 per kilo of fish they import as a special commodity levy – not for a can; for a kilo of fish. They don’t pay any VAT. We are told that when there is a border tax in the form of special commodity levy, VAT can’t be levied. We don’t know whether that is true or not. However, for us, there is income tax, VAT at the rate of 18%, workers’ wages, fuel costs, EPF/ETF etc. Altogether these push our production costs high. And when we finally send our products to the market, we find that the importers have conveniently converted their tax advantage into a strategic pricing point, and consumers who have been hard hit by the cost of living choose to buy the cheaper product. Importers get two good things at the same time; less tax and pricing advantage whereas we are caught in a double bind between higher production cost and less competitiveness in the market,” he says.
“It has been more than two months now since we pointed out this matter to the authorities in the responsible line ministries. If the government doesn’t want to address this issue objectively and quickly enough, the repercussions of permanent closure of our factories could be dire not only for the 16 manufacturers of our Association who have invested in this industry, but also for the 4,000 direct employees who have toiled for more than 10 years to develop the industry up to this level. This could be the end of a success story of import substitution,” he says.
“Mind you, there will be a lot of Linna fish coming to the market as the season is nearing. But the fisher folk will not see us coming to buy their catch because we can’t compete with imported products that enjoy a pricing advantage over us. This could cause an economic and a huge social issue”, Fernando warns.
When asked what they expect the authorities to do to resolve the issue, Kapila Balasuriya, Secretary CFMA says,” We are not asking for tax subsidies. We know that the government needs revenue and we are willing to pay it. But the government must act upon creating a level playing field for both local manufacturers and importers. That’s key. We must make it clear that we are not asking for protectionist measures.
But the tax anomaly has become a blessing for importers and a curse for local industry. This must be rectified. We have suggested the authorities to increase the Rs.200 per kilo SCL applicable to importers to Rs. 500. Then that will equalize our competiveness in the market and the consumers will be able to buy canned fish for freshness, quality and price instead of considering the price only. We appeal the authorities to create this level playing field for competitiveness. That’s not asking too much as local manufacturers because creating a level playing field for all players in the market is in line with international trade rules.”
CFMA represents all the registered canned fish manufacturers of the country numbering 16 leading companies in the industry. According to CFMA, their production had saved foreign currency worth of 79 million euros per year for the government by way of import substitution in given years.
Business
Ogilvy Group tops award tally at Dragons of Sri Lanka 2026
Nine awards, including two Golds, across disciplines recognise business-driven creativity
Ogilvy Group Sri Lanka delivered a standout performance at the recently concluded Dragons of Sri Lanka 2026 Awards, securing a total of nine awards comprising two Gold Dragons, one Silver Dragon and six Black Dragons, among the festival’s highest overall award tallies, a company news release said.
Gold Dragon wins for Phoenix Ogilvy and Ogilvy Digital, together with the seven additional recognitions across multiple categories, highlighted Ogilvy’s ability to combine creativity, strategic thinking and commercial effectiveness to deliver business results.
Organised by the 4As Sri Lanka, the third edition of Dragons of Sri Lanka shortlisted more than 50 agencies and corporates, making it one of the country’s most competitive marketing communications awards. These local awards, along with the chapters in Malaysia and Pakistan are part of the Dragons of Asia platform, one of the region’s leading programmes for marketing communications effectiveness, with entries being judged on strategy, originality, execution and measurable results.
Ogilvy Digital accounted for eight awards in total, including a Gold Dragon in the Business & Trade Marketing category, and a Silver Dragon in the Innovative Idea or Concept category. The Agency additionally received six Black Dragons across the categories of Innovative Idea or Concept, Business & Trade Marketing, Content Creation, Small Budget, Event or Experiential, and Brand Trial or Sales Generation.
Commenting on the achievement, Sajith Weerasinghe, Chief Operating Officer of Ogilvy Digital, said, “These recognitions reflect the breadth of capabilities we’ve built across strategy, creative, content, experience design, technology and performance marketing. The fact that the work was recognised across so many different disciplines demonstrates our ability to apply creativity to a wide range of business challenges and objectives. We’re proud that this achievement spans multiple clients, categories and types of work, reflecting both the versatility of our people and our commitment to delivering results.”
The Ogilvy Group’s second Gold Dragon win was Phoenix Ogilvy’s recognition in the Product Launch or Re-Launch category for the relaunch of American Premium Water. It was a multi-dimensional campaign which refreshed the identity and rejuvenated the positioning of one of Sri Lanka’s pioneering bottled drinking water brands, bolstering its 30-year heritage while connecting with a new generation of consumers.
Commenting on the win, Siddhartha Roy, Chief Operating Officer at Phoenix Ogilvy, said, “There’s always something special about reimagining a brand with a rich heritage. American Premium Water has been a trusted name in Sri Lanka for more than three decades, but the challenge was to make it relevant and compelling for a new generation of consumers. We created a new blueprint for growth for the brand’s positioning, proposition and visual identity, and manifested it through design, packaging and storytelling. To see that transformation recognised with a Gold Dragon, and more importantly reflected in the brand’s renewed momentum in the market, makes this a particularly rewarding achievement.”
The Ogilvy Group Sri Lanka operates across multiple marketing communication disciplines and comprises over 290 staff in creative, strategy, digital, media, public relations and integrated communications. As part of the global Ogilvy network, the Group partners with leading local and international brands to create integrated campaigns that build brands, influence behaviour and drive business growth.
Business
Musical tribute to Fr. Marcelline Jayakody held in California
A musical tribute celebrating the life and legacy of Rev. Fr. Marcelline Jayakody, OMI, renowned for his contribution to Sri Lankan arts, music, culture and religious harmony, was held in California with the participation of a large gathering of Sri Lankans.
Titled “Sri Lanka Rani Maniye,” the event was organised by the Sri Lankan Catholic Community in California (SLCCC) under the guidance of Rev. Fr. Rashmi M. Fernando, S.J.
The programme honoured Fr. Jayakody, affectionately known as “Pansale Piyathuma” (The Priest of the Temple), for his efforts to promote Buddhist-Catholic understanding, interfaith dialogue and a shared Sri Lankan identity.
The event brought together members of the Maha Sangha, the Consul General of Sri Lanka in Los Angeles, musicians, singers, donors, parents, children and members of the Sri Lankan community from Los Angeles and other parts of Southern California.
Music, song and Sri Lankan cultural traditions featured prominently, with organisers placing particular emphasis on introducing the country’s artistic and cultural heritage to younger generations of Sri Lankans growing up overseas.
The programme also highlighted the importance of community unity, religious harmony and mutual respect among Sri Lankans living abroad.
Rev. Fr. Fernando told the gathering that the event marked only the beginning of efforts that could achieve more through unity “for the pride and greater good of our motherland, Sri Lanka.”
The organisers thanked the performers, volunteers, donors and well-wishers who contributed to the event, which concluded as a celebration of Fr. Jayakody’s enduring cultural legacy and the Sri Lankan diaspora’s continuing connection with its homeland.
Business
Hayleys Fentons completes Rs. 1 bn manufacturing facility in Wathupitiwala
Hayleys Fentons Limited has completed construction of a state-of-the-art manufacturing facility for Shield Restraint Systems (Pvt) Ltd at the Wathupitiwala Export Processing Zone, with the project completed on schedule within approximately 14 months.
The project, valued at more than Rs. 1 billion, commenced with the laying of the foundation stone on January 7, 2025. It was undertaken by the project arm of Hayleys Fentons, with Design Consortium International (Pvt) Ltd serving as the principal design consultant.
The facility has been designed to meet international industry standards and incorporates advanced safety and energy-efficiency features. A pre-engineered building structural system was used to facilitate faster construction and optimise project costs.
The new facility will manufacture safety restraint systems for the international automotive industry through Shield Restraint Systems.
Hayleys Fentons Deputy Managing Director – Projects Sujith De Alwis said the timely completion of the project demonstrated the company’s engineering and project management capabilities and the ability of Sri Lankan construction expertise to meet stringent international standards.
Hayleys Mobility Executive Director Roshani Dharmaratne said the project required detailed planning, quality management and coordination across multiple disciplines.

Sujith De Alwis, Deputy Managing Director – Projects of Hayleys Fentons Limited and Roshani Dharmaratne, Executive Director of Hayleys Mobility Limited
Chairman Design Consortium Migara Alwis said the project further strengthens its portfolio in specialised industrial construction and supports investment linked to Sri Lanka’s participation in the global automotive supply chain.
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