Business
Corrugated Packaging Industry facing multiple challenges, seeks support to cope a little better
The net profit margin of the industry is an average of 5% and it can vary around 3%-7%. The industry rarely makes 7% margin and that could happen only when paper prices are at rock-bottom
Bannet Gamalath, CEO – UNIDIL Packaging Ltd – the packaging arm of VALLIBEL ONE PLC) – who is also the President of Lanka Corrugated Carton Manufacturer’s Association says that following the recent IPO announcement made by one of the carton manufacturers, people have started talking about the industry in an interested and excited way.
“In this context, as President of the Lanka Corrugated Cartons Manufacturers Association (LCCMA), I’d like to shed some light on the industry.”
“Today, corrugated cartons are recognised among the world’s most widely used materials for packaging. As a material, it also offers almost unlimited possibilities to produce packaging with different properties and shapes.” he says.
“Despite the fact that this industry serves nearly every sector of the economy becoming an integral part of the supply chain, corrugated cartons have not been regarded as an interesting area of discussion.”
“At present, around 30 small to large corrugated cartons manufacturers operate in the island. Out of these firms, seven companies control 80% of the market share while the remainder contribute around 20%. The demand for the corrugated cartons in Sri Lanka is very limited as our economy has not shown steady growth in the past.”
“The current market is around 14,500 MTNS (metric tonnes) per month and the year-on-year growth of the market is less than 2%. Hence, there is a huge competition among the players to capture the existing market. Consequently with the market pressure, the industry maintains minimal prices and eventually the companies just make normal profit. In early 2000s, many companies discontinued their operation due to heavy losses including the then corrugated giants including MSH Packaging and Nisol Corrugated Packaging.”
“The net profit margin of the industry is an average of 5% and it can vary around 3%-7%. The industry very rarely makes 7% margin and that could happen only when the paper prices are at rock-bottom.”
“Apart from imported paper, the members of the Association also source local paper to a certain extent. The paper manufacturing industry in Sri Lanka is at the infant stage and have yet to expand. Hence, the convertors are being forced to rely upon the imported paper mostly.”
“During past few years the board making capacity in Sri Lanka was expanded as some of the companies increased operations through new corrugated plants. Today these plants contribute a monthly capacity of around 4,000 MTNS while the second level entities maintain a capacity around 2,500 MTNS per month. It is estimated that the total board making capacity in the country is around 34,000 – 36,000 MTNS monthly. However, the printing capacity is limited and does not match the same volumes. Howerver, any company can enhance its printing capacity within 5-6 months as good machinery can be sourced from China and Taiwan.”
“Despite the interest in packaging is growing and the realisation that other sectors cannot survive in isolation without packaging, our industry continues to face many challenges.”
“The latest upsurge of the prices began nearly one and half years ago adversely affecting the industry. As a result, paper prices have escalated by around 70% and this ‘alarming’ upward trend is expected to rise over 100% towards the end of this year. Adding to this crisis, is the huge shortage of paper in the international market consequent to the ill-effects of Covid 19 pandemic. Furthermore, in the midst of this shortage, our members continue to struggle to open LCs with the current dollar restrictions imposed by the local banks.”
“While the industry is equipped with adequate infrastructure to support the future growth of Sri Lanka’s economy, it is also imperative that all the stakeholders and authorities contribute towards a sustainable and thriving packaging industry in Sri Lanka,” Bannet Gamalath says.
Business
Sri Lanka betting its tourism future on cold, hard numbers
National Airport Exit Survey tells quite a story
Australia’s role here is strategic, not charitable
In a quiet but significant shift, Sri Lanka’s tourism sector is moving beyond traditional destination marketing and instinct-based planning. The recent launch of the “From Data to Decisions” initiative jointly backed by Australia’s Market Development Facility and the Sri Lanka Tourism Development Authority, sent an unambiguous message: sentiment is out, statistics are in.
The initiative is anchored by a 12-month National Airport Exit Survey, a trove of data covering 16,000 travellers. The findings sketch a new traveller profile: nearly half are young (20–35), independent, and book online. Galle, Ella, and Sigiriya are the hotspots; women travellers outnumber men; and a promising 45% plan to return. This isn’t just trivia. It’s a strategic blueprint. If Sri Lanka Tourism listens, it can tailor everything from infrastructure to marketing, moving from guesswork to precision.
The keynote speaker, Deputy Minister Prof. Ruwan Ranasinghe called data “a vital pillar of tourism transformation.” Yet the unspoken truth is that Sri Lanka has long relied on generic appeals -beaches, heritage, smiles. In today’s crowded market, that’s no longer enough. As SLTDA Chairman Buddhika Hewawasam noted, this partnership is about “elevating how we collect, analyse, and use data.”
Australia’s role here is strategic, not charitable. By funding research and advocating for a Tourism Satellite Account, it is helping Sri Lanka build a tourism sector that is both sustainable and measurable. Australian High Commissioner Matthew Duckworth linked this support to “global standards of environmental protection” – a clear nod to the growing demand for green travel. This isn’t just aid; it’s influence through insight.
“The real test lies ahead,” a tourism expert told The Island. “Data is only as good as the decisions it drives. Will these insights overcome bureaucratic inertia? Will marketing budgets actually follow the evidence toward younger, independent, female travellers?,” he asked.
“The comprehensive report promised for early 2026 must move swiftly from recommendation to action. In an era where destinations are discovered on Instagram and planned with algorithms, intuition alone is a high-stakes gamble. This forum made one thing clear: Sri Lanka is finally building its future on what visitors actually do – not just what we hope they’ll do. The numbers are in. Now, the industry must dare to follow them,” he said.
By Sanath Nanayakkare
Business
New ATA Chair champions Asia’s small tea farmers, unveils ambitious agenda
In his inaugural address as the new Chairman of the Asia Tea Alliance (ATA), Nimal Udugampola placed the region’s millions of smallholders at the core of the global tea industry’s future, asserting they are the “indispensable engine” of a sector that produces over 90% of the world’s tea.
Udugampola, who is also Chairman of Sri Lanka’s Tea Smallholdings Development Authority, used his speech at the 6th ATA Summit held in Colombo on Nov. 27 to declare that the prosperity of Asian tea is “entirely contingent” on the resilience of its small-scale farmers, who have historically been overlooked by premium global markets.
“In Sri Lanka, smallholders account for over 75% of our national production. Across Asia, millions of families maintain the quality and character of our regional teas,” he stated, accepting the chairmanship for the 2025-2027 term.
To empower this vital community, Udugampola unveiled a vision focused on Sustainability, Equity, and Digital Transformation. The strategic agenda includes:
Climate Resilience: Promoting climate-smart agriculture and regenerative farming to protect smallholdings from environmental disruption.
Digital Equity: Leveraging technology like blockchain to create farm-to-cup traceability, connecting smallholders directly with premium consumers and ensuring fair value.
Market Expansion: Driving innovation in tea products and marketing to attract younger consumers and enter non-traditional markets.
Standard Harmonization: Establishing common regional quality and sustainability standards to protect the “Asian Tea” brand and push for stable, fair pricing.
Linking the alliance’s goals to national ambition, Udugampola highlighted Sri Lanka’s target of producing 400 million kilograms of tea by 2030. He presented the country’s “Pivithuru Tea Initiative” as a model for other ATA nations, designed to achieve this through smallholder empowerment, digitalization, and aligned policy objectives.
By Sanath Nanayakkare
Business
Brandix recognised as Green Brand of Year at SLIM Awards 2025
Brandix Apparel Solutions was recognised as the Green Brand of the Year at the Sri Lanka Institute of Marketing (SLIM) Brand Excellence Awards 2025, taking home Silver, the highest award presented in the category this year.
The ‘Green Brand of the Year’ recognises the brand that drives measurable environmental impact through sustainable practices, climate-aligned goals and long-term commitment to protecting natural resources.
A pioneer in responsible apparel manufacturing for over two decades, Brandix has championed best practices in the sphere of sustainable manufacturing covering environmental, social, and governance aspects. The company built the world’s first Net Zero Carbon-certified apparel manufacturing facility (across Scope 1 and Scope 2) and meets over 60% of its energy requirement in Sri Lanka via renewable sources.
Head of ESG at Brandix, Nirmal Perera, said: “Being recognised as Green Brand of the Year is an encouraging milestone for our teams working across sustainability.”
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