Business
Seasonal swings in Sri Lanka’s mango market: A balancing act with economic insights
Chandula Idirisinghe is a Research Assistant working on Agriculture and Agribusiness Development at the Institute of Policy Studies of Sri Lanka (IPS). He holds a BSc (Hons) in Agricultural Technology and Management, specialising in Applied Economics and Business Management from the Faculty of Agriculture, University of Peradeniya. His research interests include agricultural policies and institutions; agricultural productivity; agribusiness value chains; food security and environmental and natural resource policies.
By Chandula Idirisinghe
Sri Lanka’s mango industry, deeply woven into the cultural fabric and dietary needs of Sri Lanka, is thriving with a 12.2% production boost and a 5% yield improvement over the past two decades.
Yet, the industry is characterised by drastic seasonal price swings. Prices are currently low, and another significant drop is expected between September and January, mirroring last year’s 70% plunge in Karthakolomban mango prices.
Regional production concentration has led to price disparities nationwide, highlighting the need for better demand and supply management.
The blog suggests a dynamic, multi-pronged strategy to tackle seasonality over the price disparity based on an IPS study on developing food loss reduction pathways through smart business practices in mango value chains: promoting value-added products, optimising logistics and storage, forming farmer clusters, and tapping into export markets.
Mango is the most widely cultivated fruit crop after bananas in Sri Lanka. According to the Department of Census and Statistics (2023), the average mango cultivation area over the past five years (2018-2023) has expanded by 6.9%, reaching 28,372 hectares, compared to the 2002-2007 average. Furthermore, national mango fruit production has demonstrated a remarkable rise of 12.2%, with an increase per hectare of mango fruit production by 5%.
Sri Lanka boasts a longstanding tradition of mango cultivation. Mangoes are the third-highest consumed fruit in terms of value, following only bananas and papayas. The traditional cultivars ‘Betti’, ‘Karthacolomban’, ‘Vellaicolomban’, ‘Kohu’, and ‘Villard’, and the modern cultivar ‘TomEJC’ have become dominant players within Sri Lankan wholesale/ retail markets.
Over the past two decades, the geographical distribution of mango cultivation has undergone a notable transformation. Nearly two-thirds (65.36%) of mango cultivation in Sri Lanka is currently concentrated in just nine districts. While Kurunegala historically held the dominant position as the leading producer, recent years have witnessed a significant decline in the mango-cultivated areas. Anuradhapura and Monaragala have experienced significant growth, with Anuradhapura surpassing Kurunegala as the current leader in terms of cultivation area.
Witnessing a noteworthy expansion into international markets, fresh mango fruit exports have exhibited a significant upward trajectory since 2017, reaching 374 metric tons by 2022. Dried mango exports followed similar growth, experiencing a notable rise from 2019 to 2021, resulting in 63 metric tons exported in 2022. Despite the recent progress in Sri Lanka’s mango production, fueled by innovative, high-yielding cultivars tailored to specific regions, a persistent challenge remains: the seasonality of production.
The Seasonality Factor and Its Economic Impact
In Sri Lanka, mango production exhibits two distinct production peaks over the year, which pave the way for drastic seasonal price fluctuations. Mango trees in the wet and intermediate zones typically bloom from January to March, with peak harvests from April to July (Yala Season). Conversely, in the dry zone, blooming occurs from July to September, with peak harvests from October to January (Maha season). These regional variations in blooming and harvesting periods are influenced by Sri Lanka’s diverse climatic conditions, primarily by its varying rainfall patterns.
This seasonality creates classic supply and demand imbalances, marked by distinct dual peaks and troughs in prices each year, with the highest fluctuations observed over the past two years. For instance, price data from 2023 shows that even popular cultivars like Karthakolomban can experience significant price drops. During the off-season in September, prices peaked at 252.1 Rs/kg when mangoes were less available. However, by the next peak harvesting time in December, prices had dropped by as much as 70%, reaching 71.2 Rs/kg as the market became saturated with mangoes.
Moreover, Sri Lanka’s mango market shows notable nationwide price disparities – for the same cultivar – alongside seasonal price fluctuations. The mango harvest from wet and intermediate zones saturates their regional markets from April to July, while markets in dry zones are saturated from October to January.
Despite investing in high-yielding cultivars, growers face unpredictable income due to fluctuating market prices, creating financial strain for them. Conversely, on the consumer side, price volatility disrupts purchasing behaviour. During off-seasons, limited availability and high prices can restrict their access to mangoes, particularly for low-income households. This not only impacts dietary choices but also undermines the mango fruit’s role as an affordable source of essential vitamins and minerals.
Way Forward: A Multi-Pronged Approach
A strategic and coordinated approach involving all value chain actors—from growers to consumers—can effectively stabilise price levels, mitigate growers’ financial hardships, and ensure affordable fruit availability year-round.
Rerouting Demand to Value-Added Products: Promoting value-added products such as pulp, jams, dried slices, and chutneys, produced utilising surplus mango fruit from peak seasons, assists in meeting year-round demand while mitigating heightened demand for fresh mangoes during off-seasons.
Logistics and Distribution Network Optimisation: A strengthened distribution network with improved cold chain facilities can mitigate price disparities and ensure nationwide availability of mangoes at fair prices. This involves identifying key production districts, improving infrastructure, streamlining transportation routes, establishing efficient market linkages, and enhancing access to market information. Further, buffer stocking curbs the excessive volatility of prices of fresh mangoes by regulating the gradual movement of fresh mangoes into and out of the markets.
Establishment of Farmer Clusters: Building on a strong foundation, Sri Lanka has already established successful farmer clusters for commercial mango production, such as those under the ‘Nucleus Estates’ initiative by the Agriculture Sector Modernization Project (ASMP) and Lanka Fruit and Vegetable Producers, Processors and Exporters Association (LFVPPEA). Farmer clusters foster sharing knowledge and supply opportunities, and pooling of resources, thereby leveraging growers with economies of scale, amplifying their collective voice, and ensuring a consistent supply.
Untapping Export Potential: Several global markets, like the EU, USA, Middle East, and Australia, hold significant export potential for Sri Lankan mangoes. Meeting their stringent quality standards requires a multi-faceted approach: improving orchard management with Good Agricultural Practices (GAP), Integrated Pest Management (IPM) and training on post-harvest handling and quality control compliance with international regulations. IPS, in collaboration with LFVPPEA, has already supported commercial mango growers in harnessing export potential through training and capacity building under an Australian Centre for International Agricultural Research (ACIAR) project (CS/2020/193).
This blog is based on an ongoing IPS study conducted under the ACIAR-funded project ‘Developing food loss reduction pathways through smart business practices in mango and tomato value chains in Pakistan and Sri Lanka’.
Link to original blog: https://www.ips.lk/talkingeconomics/2024/07/09/seasonal-swings-in-sri-lankas-mango-market-a-balancing-act-with-economic-insights/
Business
Tax revenue rebound seen as reshaping SL’s sovereign risk outlook
Sri Lanka’s improving tax performance is reshaping its sovereign risk outlook. With the tax-to-GDP ratio rebounding to 15.4% from pre-crisis lows near 10%, markets are seeing early signs that fiscal consolidation is becoming structurally anchored—supporting debt sustainability, IMF programme credibility and a gradual return to capital markets.
Finance and Planning Deputy Minister Dr. Anil Jayantha Fernando said on Monday that tax revenue is on track to reach 16% of GDP by the end of this year, marking one of the strongest fiscal reversals in the country’s recent history. Speaking at a ceremony at the Inland Revenue Department (IRD) to present appointment letters to 100 newly recruited Assistant Commissioners, he said all three main revenue-collecting agencies—the IRD, Sri Lanka Customs and the Excise Department—have exceeded their annual targets.
From a macroeconomic standpoint, the recovery in revenue mobilisation reduces Sri Lanka’s reliance on debt accumulation, monetary financing and ad hoc tax measures—key vulnerabilities highlighted during the economic crisis. Dr. Fernando said the Government’s medium-term objective of lifting the tax-to-GDP ratio to 20% is achievable if credibility in fiscal governance continues to improve.
He attributed the revenue surge primarily to the restoration of trust between the state and taxpayers rather than to technology or enforcement alone. Improved compliance, he said, reflects growing confidence that public funds are being managed transparently and directed towards development priorities, reversing years of entrenched tax evasion linked to weak governance.
Fernando also stressed the correlation between higher tax ratios and lower corruption, noting that Sri Lanka’s revenue base had eroded sharply during periods of institutional decay. The recent rebound, he said, signals renewed accountability and more disciplined public financial management.
On public sector reform, he rejected the narrative that the public service is inherently a fiscal burden, arguing that inefficiencies stemmed from decades of politically motivated recruitment. The government, he said, is now rebuilding the public service through merit-based, competitive recruitment, aligned with broader public sector transformation and fiscal capacity. The newly appointed officers, he added, will play a critical role in strengthening revenue administration and policy implementation.
Turning to structural growth constraints, Dr. Fernando highlighted low labour force participation—particularly among women—as a key drag on income expansion and future revenue potential. Despite women accounting for a majority of the population, female participation remains below 30%, limiting productivity growth and narrowing the tax base. Raising participation levels, he said, is essential to sustaining higher growth over the medium term.
He also stressed the importance of simplifying the tax system to improve predictability and compliance while ensuring all eligible taxpayers are captured. Sustainable revenue growth, he reiterated, must come from broadening the base rather than imposing excessive burdens on a narrow segment of taxpayers.
By Ifham Nizam
Business
WTS IPO opens tomorrow
The Initial Public Offering (IPO) of WealthTrust Securities Limited (WTS) will open tomorrow, inviting the public to subscribe for 71,548,244 Ordinary Voting Shares at an Issue Price of LKR 7.00 per share. Through the Issue, WTS seeks to raise a total of LKR 500,837,708, with the Company’s shares expected to be listed on the Diri Savi Board of the Colombo Stock Exchange (CSE).
WTS is a Primary Dealer authorised by the Central Bank of Sri Lanka, and is also licensed by the Securities and Exchange Commission of Sri Lanka as a Stock Broker (Debt) and Stock Dealer (Debt). The proceeds of the IPO are intended to further strengthen the Company’s core capital buffer and support the expansion of its investment and trading portfolio in government securities, enhancing capacity to manage market and interest rate risk while supporting sustained value creation.
The Issue is being managed by Asia Securities Advisors (Private) Limited as Manager and Financial Advisor to the Issue. With the offering priced at a discount to valuation benchmarks cited in the Prospectus, and with broad-based interest typically seen in well-positioned capital market listings, WTS enters its opening day with positive sentiment and strong anticipation among prospective investors.
Business
CBC Finance lists on the Colombo Stock Exchange
CBC Finance Ltd, a subsidiary of the Commercial Bank of Ceylon PLC commemorated its listing on the Colombo Stock Exchange (CSE) by way of the issuance of LKR 1.5 bn worth of debentures by the ceremonial ringing of the market opening bell on the CSE trading floor.
CBC Finance Ltd raised LKR 1.5 Bn on 27th November 2025 with an oversubscription of an issue of 15 Mn Listed Rated Unsecured Subordinated Redeemable Debentures for a tenure of five years and a fixed interest rate of 11.50% p.a. payable annually (AER 11.50%), with a par value of LKR 100/- and an issue rating of “BBB+(lka)” by Fitch Ratings Lanka Limited.
Sharhan Muhseen, Chairman of CBC Finance Ltd and the Commercial Bank of Ceylon PLC, who was the events keynote speaker remarked upon the companies listing and CBC Finance’s role, commenting: “We are a key part of the economy. The development of the capital market is essential for the economic growth of the country. Thus, through this debenture issue, we encourage investors to participate in the development of the capital markets which is a key driver of economic growth.”
Delivering her welcome address at the event, Ms. Nilupa Perera, Chief Regulatory Officer of CSE, remarked upon the wide array of products CSE offers, stating: “The Colombo Stock Exchange has introduced several innovative instruments, from Shariah compliant debt instruments to GSS+ instruments – Green bonds, Social Bonds, Blue Bonds, sustainable and sustainability linked bonds, perpetual bonds and high yield debenture bonds. We hope that CBC Finance Ltd will use CSE to raise capital through these instruments.”
CBC Finance Ltd., formerly known as Indra Finance Ltd. and subsequently re-named as Serendib Finance Ltd., was acquired by Commercial Bank of Ceylon PLC in 2014. The company was established in 1987 as Indra Finance Ltd and has 21 branches island wide, delivering a wide range of financial services to Individual and SME segments, and enjoys an A (lka) Stable from Fitch Ratings Lanka Limited. In the financial year 2024, the company recorded a net profit of LKR 82 Mn and successfully expanded its Total Asset Base to LKR 17 bn. Its parent company, The Commercial Bank of Ceylon PLC, was named Sri Lanka’s Best Trade Finance Bank at the prestigious Euromoney Transaction Banking Awards 2025.
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