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Spike in global raw material prices hurt SL’s corrugated carton industry

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Sri Lanka’s corrugated carton industry is facing hard times with many manufacturers struggling to insulate themselves against global price escalations which an industry player warned posed the threat of business closure with significant challenges to their financial performance.

“The biggest challenge the industry has to grapple with is the constantly fluctuating raw material prices. There is an acute global shortage of paper due to the Covid-19 pandemic, with many manufacturers experiencing disruptions in business and supply chain”, he cautioned.

The pressure on freight has also contributed to the upsurge in paper prices by over 25%, with the upward trend expected to continue, he said.

Sri Lanka’s annual total carton production is approximately 150,000 metric tons. However, there was no adequate growth visible in the industry due to either slow or minus growth in the economy in the recent past, he noted.

A few local companies expanded production capacities by adding extra automatic box making plants anticipating economic growth in the country. This initiative saw a significant increase in manufacturing capacity, with the industry geared to accommodate new opportunities, he noted.

However, many paper manufacturers are now operating below the normal production capacity, and due to low consumption of commodities, waste paper availability has nose-dived in the backdrop of world pulp prices spiraling by around 45-50%, industry officials said.

The local corrugated carton industry predominantly caters to the B2B market. As a result, the industry has to work with very thin margins due to heavy competition among the manufacturing companies. Hence, the demand for cartons is comparatively low, they explained.

The history of the corrugated carton industry in Sri Lanka goes back to many decades. Initially, companies started manufacturing boxes with Double Facer machines and with the expansion of other industries and markets, corrugated machinery was converted into fully automated lines. At present, there are over 30 corrugated carton manufacturers, of which seven account for 70% plus market share.

Packaging is an integral part of a supply chain. The corrugated packaging industry is a vital component of the economy as it caters to the needs of many sectors in the economy, food and beverages, fast-moving consumer goods (FMCG), industrial and pharmaceuticals. E-commerce is also another key trend that has created a huge impact on corrugated carton demand. Hence, the growth of the corrugated packaging industry is not independent, but correlated with the growth of the other industries and GDP growth, they stressed.

“The appearance of the box, strength and short lead times are the key deliverables that customers want from the industry. The appearance and the strength are totally dependent on the quality of the paper used for manufacture and the printing facilities of the individual manufacturer”, the officials outlined.

A few decades ago, the machines were imported to Sri Lanka from Japan with some reconditioned units purchased. With the development of the Chinese machinery manufacturing industry, where they customized machine technology embedding robotic packaging automation, many local companies sourced their machinery from China, they further said.

Two decades ago, Chinese machinery was considered of inferior quality but today, the Chinese machines are comparable with those made in Europe, they added.

There were earlier many small-scale corrugated carton manufacturers and many of them used the Double Facer corrugating machines. In these companies, two layers were produced separately and thereafter the layers were pasted manually. As a result, the volume produced by these companies was low and the quality was also not up to the expected standards, the officials continued.

Consequently, the cost of production and the delivery lead time were also considered too high in these companies. Therefore, many of them had to quit the business, while a few others acquired automatic box manufacturing plants resulting in many Sri Lankan manufacturers opting for automatic plants, they noted.

Another key factor of the industry is that the cartons manufactured in Sri Lanka are of high-quality as quality materials are sourced from Europe, American Sub Continent, Australia and various other parts in the world, they said.

In developed economies, when customers purchase corrugated boxes, they more or less look for the bursting strength of the box, not the variety or the grammage of paper being used. However, unfortunately, in Sri Lanka most customers demand grammage and the variety of papers instead of box strength. Eventually, in most instances, the corrugated packaging produced in Sri Lanka is over specified. Sadly, this is also the case with many multinational companies operating locally.

The same companies in India use Test Liner on Outer Ply, while they demand Kraft Liner paper for this purpose in Sri Lanka, the industry officials said.

In keeping with the government’s commitment to develop local industries, there are positive expectations that the corrugator packaging industry would be reviewed and given a sustainable opportunity to grow, the officials added.



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AAC looks towards a future of vertical mobility in Sri Lanka

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Drones could be facilitators of vertical mobility.

The Automobile Association of Ceylon (AAC) is looking beyond the traditional boundaries of mobility and road safety toward the future of mobility through sustainable developments in vertical mobility applications under the global guidance of the Fédération Internationale de l’Automobile (FIA).

AAC President Mr. Dhammika Attygalle believes AAC has the potential to contribute sustainable and proven systems, regulatory understanding, and international mobility frameworks toward developing Sri Lanka’s future mobility landscape while supporting the country’s broader economic development.

Representing Sri Lanka at the recent FIA Regional Drone and Vertical Mobility initiative held in Nepal was AAC Executive Committee Board Member Indula Sumithraarachchi, who participated alongside regional delegates and international mobility experts discussing the applications of vertical mobility systems and evolving regulatory frameworks covering mobility integration, safety, aviation and legal regulations.

“As mobility technologies evolve globally, we see vertical mobility as a natural extension of future mobility ecosystems. We believe vertical mobility is connected to sustainable areas not limited to future urban mobility, transport and logistics, infrastructure integration, safety frameworks, disaster and emergency response, and environmental efficiency,” he stated.

Drones are already being commercially utilized in Sri Lanka for dronegraphy (photography and videography using drones), agriculture, surveying and mapping, events, and marketing. However, it is important that greater attention is given toward safety standards, operational protocols, and aviation regulations, licensing, approvals and career professionalism as drone pilots within Sri Lanka in order to make these technologies safer and more accessible to the public.

International mobility experts increasingly recognize drones as part of a wider vertical mobility ecosystem operating alongside aviation and respective local regulatory frameworks. Experts explain that drone systems are helping countries establish regulatory structures, safety standards, technical expertise, aerial management systems, and operational frameworks that may eventually support broader future mobility technologies.

For AAC, the relationship between drones and vertical mobility represents a wider future mobility framework involving how people, services, safety, infrastructure, information, and transport systems may operate in more connected, intelligent, and efficient ways beyond conventional road-based transportation.

For decades, AAC has played an important role in Sri Lanka’s mobility sector through road safety advocacy, motoring assistance, tourism support services, driver awareness initiatives, and public mobility education. The association has continuously contributed toward improving safe mobility practices for Sri Lankan road users and motorists.

AAC now aims to position Sri Lanka within these evolving international mobility conversations while ensuring that future mobility development remains safe, responsible, and aligned with international standards.

The association also believes collaboration between regulators, aviation authorities, educational institutions, private sector innovators, and international mobility organizations will become increasingly important as future mobility ecosystems continue to develop globally.

Through FIA-supported international engagement and regional collaboration, AAC hopes to contribute toward building awareness and understanding of future mobility opportunities while ensuring Sri Lanka remains connected to emerging global transportation developments.

As mobility increasingly moves toward smarter, interconnected, and technology-driven systems worldwide, AAC’s initiatives into vertical mobility reflect its broader vision of supporting safe, progressive, and future-ready mobility solutions for Sri Lanka and future generations.

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Vietjet Air announces Colombo – Ho Chi Minh City route

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Vietjet announces its Ho Chi Minh City – Colombo direct route, in the presence of General Secretary and President of Vietnam To Lam (center) and Prime Minister of Sri Lanka Harini Amarasuriya (second from right)

Vietjet Air, Vietnamese new-age hybrid airline, has announced its first direct service connecting Colombo to Ho Chi Minh City at the Sri Lanka – Vietnam Trade, Investment and Tourism Cooperation Forum. The announcement took place in the presence of General Secretary and President of Vietnam To Lam, Prime Minister of Sri Lanka Harini Amarasuriya, and senior officials from both countries.

This is the airline’s first direct service between Sri Lanka and Vietnam, supporting the airline’s international expansion while contributing to stronger economic, trade, tourism, and people-to-people ties between the two nations.

The Colombo – Ho Chi Minh City route is expected to commence in August 2026 with four round-trip flights per week. Travelers from Colombo will soon enjoy affordable fares and seamless connectivity to Vietnam’s leading tourism and business hubs, along with convenient access through Vietjet’s extensive international flight network to major destinations across the Asia-Pacific region, including Australia, Japan, South Korea, China, and beyond.

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SDB bank and Hayleys Mobility forge strategic partnership to advance sustainable mobility and private vehicle leasing

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Tharanga De Silva - Chief Manager, Business Banking – SDB bank, Lahiru Ekanayake - Senior Manager - Leasing SDB bank, Chitral De Silva - Chief Business Officer- SDB bank, Manoj Akmeemana - Deputy Chief Executive Officer- SDB bank, Kapila Ariyaratne - Executive Director/Chief Executive Officer- SDB bank, Hasith Prematillake- Managing Director- Hayleys Mobility Limited, Roshani Dharmaratne - Executive Director - Hayleys Mobility Limited, Suraj Chularathne- Assistant General Manager- Hayleys Mobility Limited, Panduka Rathnayake - General Manager Finance - Hayleys Mobility Limited, Anjana Jayarathne - Asst. Manager Channel Development - Hayleys Mobility Limited

SDB bank has entered into a strategic partnership with Hayleys Mobility Limited through the signing of a Memorandum of Understanding, reinforcing the bank’s commitment to expanding access to structured mobility financing while advancing its broader sustainability banking agenda. The collaboration brings together two established institutions to support customers seeking leasing solutions for private vehicles, with a notable emphasis on electric vehicles as part of a more future-focused approach to transportation.

The MoU was signed recently at the Hayleys Mobility office in Union Place, in the presence of senior representatives from both organizations. Representing SDB bank Kapila Ariyaratne, Executive Director and Chief Executive Officer, Manoj Akmeemana, Deputy Chief Executive Officer, Chitral De Silva, Chief Business Officer, Lahiru Ekanayake, Head of Leasing and Tharanga De Silva Chief Manager, Business Banking were participated. Hayleys Mobility Limited was represented by Managing Director Hasith Prematillake, Director Roshani Dharmaratne, Mr. Panduka Rathnayake – General Manager Finance, and Mr. Suraj Chularathne – Assistant General Manager.

The partnership is designed to expand access to private and sustainable leasing solutions across Sri Lanka, while also responding to growing interest in cleaner and more responsible mobility choices. By placing special focus on electric vehicle leasing, the initiative reflects SDB bank’s recognition of changing customer preferences and the importance of supporting more sustainable transport options through accessible financing.

In addition to supporting conventional private vehicle financing, the collaboration enables customers to benefit from a more integrated experience that brings together vehicle selection and financing under a single proposition. Through the combined reach of SDB bank and Hayleys Mobility, the partnership is expected to improve accessibility and convenience for customers across the country, including professionals, self-employed individuals, business owners and other private vehicle buyers looking for reliable, structured leasing solutions.

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