Business

COVID-19 diaries: Sri Lanka needs a resilient logistics system

Published

5 years ago

2021/05/3

By Winnie Wang , Senior Transport Specialist, World Bank

Logistics carry dreams. Back in 2007, when I applied to graduate schools in the United States, nothing could beat the excitement of handing over my applications to FedEx, clinging to the receipts with precious tracking numbers, and checking them a hundred times a day until I got confirmation that the packages had indeed arrived at my dream schools—all within the three business days they had promised.

A few months later, it was UPS that brought me the offer letter from MIT, transforming my destiny from a rural girl in China into a truly global citizen. I had never been on an airplane or anywhere out of my homeland before my flight to Cambridge, Massachusetts.

Two years ago in 2019, life brought me to the World Bank office in Sri Lanka, near the Port of Colombo, one of the 20 most well-connected ports in the world.

Watching a busy port at work can be endlessly fascinating. It still gives me a thrill to see the giant ships glide by, laden with containers carrying cargo from halfway across the world, including, recently, all our household goods, especially boxes upon boxes of my children’s favorite toys.

It’s logistics that made it all happen.

COVID-19 Rocks the Logistics Boat

As effective as logistics may seem at facilitating the transport of college applications and children’s toys, the COVID-19 pandemic has unveiled significant vulnerabilities in that sector.

In the initial weeks of the lockdown last year, I remember struggling to put together a meal with only rice and milk powder left in my kitchen. While most other residents of Colombo must have endured similar experiences, Sri Lanka’s farmers were left with no option but to throw away their fruits and vegetables since there was no safe and efficient way to store and transport them. Meanwhile, consumers in the city had to wait for several days before they could buy fresh produce and pay a much higher price when they were finally able to do so. It was a lose-lose situation for everyone—consumers, producers, and the myriad others in the supply chain.

COVID-19 had underscored how fragmented Sri Lanka’s domestic supply chains were—particularly those related to agricultural products—leading to inefficiencies throughout the logistics sector.

Initially, online delivery systems also crashed as the country had very limited experience with digital platforms and paperless transactions. However, they picked up quickly, and small and medium enterprises were quick to utilize social media and smartphone apps to deliver goods to customers.

Even so, the pandemic brought the fundamental challenges that confront Sri Lanka’s transportation network into stark relief. The vital sinews, which keep the island nation’s freight and cargo moving, were unduly dependent on road transport. Around 97 percent of the country’s domestic freight is transported by road—with half the trucks returning empty—causing unnecessary congestion in the road network and increasing transportation costs.

The pandemic also highlighted the inadequacies in the warehousing infrastructure. According to the National Export Strategy (NES), only 138 customs-bonded warehouses exist throughout Sri Lanka, with around 80 percent of them located in the Western Province.

Besides, cold storage facilities are insufficient for storing fisheries products, a key commodity, and no major facilities exist for the safe storage of perishables at important locations. This shortfall is likely to hinder the country’s planned expansion of agricultural exports.

At the broader level, Sri Lanka’s exports, particularly the key export commodities such as tea and garments, have been significantly impacted by the pandemic. For example, according to Sri Lanka Export Development Board data, garment exports recorded an 82 percent decline, falling from $333 million in April 2019 to just $58 million in April 2020.

In a recent survey by the Ceylon Chamber of Commerce, 63 percent of Sri Lanka’s firms exporting goods and services reported significant disruption in their overall business operations due to COVID-19.

Hitting the Road Ahead with Operational Efficiency

The Government of Sri Lanka is taking action to improve the country’s logistics system. In addition to providing financial support and adopting many other initiatives, digitalization has been recognized as a key priority to improve the efficiency of the logistics sector and ensure contactless transactions for long-term sustainability. For instance, a few years ago, the blueprint for a National Single Window system was prepared jointly with the Government of Sri Lanka to facilitate efficient and paperless trade.

The private industry is also taking initiatives to improve the efficiency of the country’s logistics sector. In 2019, a private firm launched the Smart Truck Initiative via the SyTrans platform, making it easier for industry to book and schedule trucks through a mobile app. The initiative can yield even greater benefits if scaled up nationwide.

COVID-19 has taught us a valuable lesson—a national logistics system that is efficient and resilient is more important now than ever, as this sector provides the backbone for a functioning economy.

Solutions such as digitalization, improved transport connectivity, multimodal transport operations, and better coordination between various stakeholders will go a long way in strengthening domestic supply chains and maximizing the benefits that the Port of Colombo and others can bring to the country.

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Business

Redefining Industry Standards: Home Lands Group Emerges as Sri Lanka’s Premier Force in Lifestyle and Developer Leadership

Published

20 hours ago

2026/01/19

Thilina Walpola

At a time when Sri Lanka’s property landscape is experiencing rapid transformation, one organisation continues to define the direction of the market through scale, innovation, and an unwavering commitment to quality. At the 2025 PropertyGuru Asia Property Awards (Sri Lanka), the Home Lands Group of Companies maintained its place at the peak of the industry, acquiring two of the most influential awards of the year: Best Developer for the Group and Best Lifestyle Developer for Home Lands Skyline (Private) Limited.

These distinctions signify more than just project-level success. They reflect the organisation’s leadership in shaping how Sri Lankans aspire to live, work, and invest.

The Home Lands Group has built a broad presence throughout Sri Lanka’s most active corridors, from the rapidly evolving suburbs of Colombo to the developing lifestyle hubs of Negombo, Malabe, and Kahathuduwa, guided by extensive market research. The Group has transformed its in-depth knowledge of the property market into a portfolio of assets embodying superior residential living experiences, supported by strategically located branches that deliver an integrated suite of real estate services for buyers nationwide.

Home Lands Skyline, the Group’s flagship development arm and the 2025 Best Lifestyle Developer, is responsible for this on-ground reach. The company was commended for shaping communities through visionary residential environments and for its ability to combine cutting-edge sustainability with expansive lifestyle amenities. With 19 completed projects, including the largest integrated golf community in Sri Lanka and nine sustainable developments, Home Lands Skyline keeps raising the bar for efficiency, design, and placemaking.

Both ambition and operational strength are evident in its recent accomplishments. The company completed a number of landmark projects such as Elixia 3C’s Apartments, Santorini Resort Apartments & Residencies, and the 1,200-unit Canterbury Golf Resort Apartments & Residencies, which has more than 50 resort amenities that meet international standards and the nation’s first day-and-night golf course. In addition, the Group’s remarkable 58% market share earned it the title of Sri Lanka’s Most Preferred Residential Real Estate Brand in the RIU Brand Health Survey.

This growth is supported by a sustainability-first philosophy. The company incorporates environmental responsibility into every stage of development, from modular construction, renewable energy integration, and ethical sourcing throughout its supply chain to passive design principles that improve natural light and ventilation. This dedication is demonstrated by its Platinum Award at the CIOB Green Awards 2024.

The Home Lands Group is at the forefront of creating new lifestyle expectations as demand for well-planned, resort-style communities rises. In addition to confirming past achievements, the Group’s 2025 victories at the PropertyGuru Asia Property Awards (Sri Lanka) indicate a trajectory of ongoing leadership, positioning it as a transformative force in the future of Sri Lankan real estate.

Business

Cheaper credit expected to drive Sri Lanka’s business landscape in 2026

Published

20 hours ago

2026/01/19

Thilina Walpola

The Central Bank has reported data points that help stimulate private sector investment in 2026.

The opening weeks of 2026 are offering a glimmer of cautious hope for the business community weary from years of economic turbulence and steep financing costs. The Central Bank’s latest weekly economic indicators signal more than just macroeconomic stability. They point to early signs of a long-awaited trend; a measurable dip in borrowing costs.

“If sustained, this shift could transform steady growth into a robust, investment-led expansion,” a senior economist told The Island Financial Review.

The benchmark Average Weighted Prime Lending Rate (AWPR) declined by 21 basis points to 8.98% for the week ending 16 January, according to the Central Bank.

“For entrepreneurs and CEOs, this is not just another statistic. It could mean the difference between postponing an expansion and hiring new staff. Across boardrooms, the hope is that this marks the start of a sustained downward trend that holds through 2026,” he said.

When asked about the instances where Treasury Bills are not fully subscribed by the investors, he replied,” Treasury Bill yields remained broadly stable, with only minimal movement across 91-day, 182-day, and 364-day tenors. Strong demand was clear, with the latest T-Bill auction oversubscribed by about 3.5 times. This sovereign-level stability creates room for the gradual easing of commercial lending rates, allowing the Central Bank to nurture a more growth-supportive monetary policy.”

Replying to a question on how he views the inflation numbers in this context, he said, “The year-on-year increase in the National Consumer Price Index stood at a manageable 2.4% in November, with core inflation at 2.2%. Such an environment should allow interest rates to fall without sparking a price spiral. For businesses, it means the real cost of borrowing adjusted for inflation, and it is becoming more favourable for them. While consumers still face weekly price shifts in vegetables and fish, the broader disinflation trend gives policymakers leeway to keep credit affordable.”

Referring to the growth trajectory, he mentioned, “With GDP growth provisionally at 5.4% in the third quarter of 2025 and Purchasing Managers’ Indices signalling expansion in both manufacturing and services, the economy is in a growth phase. However, to accelerate this momentum businesses need capital at lower cost to modernise machinery, boost export capacity, and spur innovation. Affordable credit is, therefore, not merely helpful, it is essential to shift growth into a higher gear.”

In conclusion , he said,” The coming months will be watched closely, because for Sri Lankan businesses, a sustained decline in borrowing costs isn’t just an indicator; it’s the foundation for growth. There’s hope that this easing in the cost of money will prevail through most of the year.”

By Sanath Nanayakkare ✍️

Business

Mercantile Investments expands to 90 branches, backed by strong growth

Published

20 hours ago

2026/01/19

Thilina Walpola

Mercantile Investments & Finance PLC has expanded its national footprint to 90 branches with a new opening in Tangalle, reinforcing its commitment to community accessibility. The trusted non-bank financial institution, with over 60 years of service, now supports diverse communities across Sri Lanka with leasing, deposits, gold loans, and tailored lending.

This physical expansion aligns with significant financial growth. The company recently surpassed an LKR 100 billion asset base, with its lending portfolio doubling to Rs. 75 billion and deposits growing to Rs. 51 billion, reflecting strong customer trust. It maintains a low NPL ratio of 4.65%.

Chief Operating Officer Laksanda Gunawardena stated the branch network is vital for building trust, complemented by ongoing digital investments. Managing Director Gerard Ondaatjie linked the growth to six decades of safeguarding depositor interests.

With strategic plans extending to 2027, Mercantile Investments aims to convert its scale into sustained competitive advantage, supporting both customers and Sri Lanka’s economic progress.