Business
Sri Lanka could benefit from global trend towards EV use – IPS study
By Ifham Nizam
The latest publication of the Institute of Policy Studies of Sri Lanka (IPS), `Trade Wars in Electric Vehicle Supply Chains: A Win for Sri Lanka’s Graphite Industry?” indicates that Sri Lanka is poised to benefit from the global trend towards electric vehicles (EVs). Sri Lanka stands to gain by leveraging its top-quality vein graphite, crucial for EV battery manufacturing, the publication says.
Sri Lanka, renowned for its high-quality vein graphite, is poised to benefit from the increasing demand for “non-China origin” graphite, driven by the global push towards electro mobility and the US Green Industrial Policy.
The IPS publication brought out by IPS researchers, Dr Asanka Wijesinghe, Malisha Weerasinghe and Chaya Dissanayake, explores the potential for Sri Lanka to join the supply chain for Electric Vehicle (EV) battery manufacturing.
Speaking at a seminar recently at the IPS, Colombo 7, IPS Research Fellow, Dr. Asanka Wijesinghe said that Sri Lanka’s commitment to sustainability and quality standards places it strategically in the non-China graphite export market, boosted by US industrial policies favouring domestic assembly and non-China sources.
Wijesinghe said that their new study highlights Sri Lanka’s opportunity to become part of the EV battery supply chain.
The study suggests that Sri Lanka could focus on upstream activities, including exporting battery-grade graphite and anodes, and strengthen Research & Development to enhance its strategic position in the non-China graphite export sector, thus attracting investment and ensuring sustainability.
Responding to The Island Financial Review on the possibility of a Free Trade Agreement (FTA) with the US, Wijesinghe believes that a comprehensive FTA may be challenging but a limited one, in the style of the Japan-US Mineral Free Trade Agreement, will be beneficial to Sri Lanka.
“Sri Lanka will have to navigate the complex geopolitical landscape in finalizing such an agreement. On the upside, such an agreement helps value addition to Sri Lanka’s graphite within the country and via export to the US under the subsidy program proposed by the US, he added.
Dr. Wijesinghe also said that US’s strategic move to adopt a proactive green industrial policy, driven by the imperative to achieve net-zero emissions and national security concerns, presents fresh opportunities for graphite producers outside China. The recently enforced Inflation Reduction Act (IRA) plays a pivotal role in reshaping the global EV battery supply value chain by excluding China and promoting domestic assembly and manufacturing of EV components.
Key findings from the IPS study reveal that as a result of these developments, the demand for graphite, a critical component of Lithium Ion Batteries (LIBs), is set to surge. “Non-China” graphite exporters, including Madagascar, Mozambique and particularly Sri Lanka, are positioned to benefit from the re-alignment of the supply chain.
The study also focuses that the Partial Equilibrium modeling results indicate that Sri Lanka holds a strategic advantage in the emerging market. Sri Lanka’s vein graphite, known for its purity, flawless crystal structure, and strong electrical conductivity, stands out as an ideal choice for the growing global demand.
Wijesinghe also stressed that despite facing challenges in terms of cost competitiveness, Sri Lanka’s focus on sustainable practices, minimal environmental impact, and compliance with acceptable labour standards positions it as a key player in the evolving landscape of “non-China” graphite exports.
“Additionally, Sri Lanka possesses a comparative advantage in graphite production and benefits from an established mining sector with an existing consumer base. Increased demand will party help Sri Lanka by increasing the world market price of graphite in the future. However, the productivity of the mining sector needs to be increased to lower the unit cost, to benefit from the emerging global opportunities,” he added.
In a world where every strong cuppa tells a unique story, Sri Lanka’s famed Ceylon Tea continues to carve its legacy – one cup at a time. The latest tea export figures for March 2025 reveal a tale of resilience, with total shipments rising to 23.43 million kilograms, up from 21.25 million kgs the previous year.
But the real headline is; Libya’s staggering 416% surge in Ceylon Tea imports – marking a bold new chapter in Sri Lanka’s tea trade. While traditional markets like Iraq and Russia held steady, Libya emerged as the ‘breakout star’, importing 5.31 million kgs in the first quarter of 2025 – a jaw-dropping leap from just 1.03 million kgs in 2024.
This explosive growth signals a burgeoning demand for Sri Lanka’s premium leaves in North Africa, where the rich, aromatic flavors of Ceylon Tea are winning hearts and palates.
Quadrupling Libya’s appetite for Ceylon Tea even in challenging global markets, is reflecting the fact that Sri Lanka’s tea can find loyal fans in evolving markets.
However, while the export values shine in USD terms, the rupee value of tea exports dipped slightly – a stark reminder of currency fluctuations impacting export earnings. Yet, the broader trend remains positive for Ceylon Tea, with cumulative exports for Q1 2025 reaching 63.21 million kgs, up from 62.33 million kgs last year.
Key markets like Iraq (+7%) and Chile (+41%) showed strong growth, while Russia and the UAE saw mild declines. Meanwhile, Tea Bags and Instant Tea have posted gains even in rupee terms – marking a bright spot in an otherwise mixed landscape, where Tea in Bulk and Green Tea segments have witnessed a decline against the same period of the previous year.
On the production front, tea production for the month of March 2025 totalled 24.43 M/Kgs, showing an increase of 4.86 M/Kgs vis-à-vis 19.57 M/Kgs of March 2024. All elevations showed an increase in comparison with the corresponding month of 2024.
“As Sri Lanka’s tea industry navigates global headwinds, the increase in production and Libya’s soaring demand could offer a breather,” analysts said.
(Source: Forbes & Walker Pvt Ltd, Sri Lanka Customs, Central Bank of Sri Lanka)
By Sanath Nanayakkare
Photo Credit: Sri Lanka Executive Aviation Services
In a groundbreaking collaboration set to transform Sri Lanka’s premium coffee landscape, Fits Retail has partnered with retail giant Abans PLC to showcase the iconic DeLonghi coffee machines at two of Colombo’s most prestigious locations: Abans Elite Colombo 3 and Abans Havelock City Mall showrooms.
This exclusive partnership presents a rare opportunity for coffee aficionados to experience firsthand why DeLonghi has become synonymous with coffee perfection worldwide.
With a heritage spanning over 100 years, DeLonghi proudly holds the title as the number one coffee machine brand in more than 46 countries, celebrated globally for its exceptional quality, innovation, and unrivaled Italian craftsmanship. Fits Retail’s collaboration with Abans PLC brings these legendary machines directly to Sri Lankan coffee enthusiasts, creating immersive experience zones designed to elevate everyday coffee moments into extraordinary rituals.
At these dedicated demonstration zones, visitors can discover the unparalleled precision engineering and user-friendly technology that have made DeLonghi machines the preferred choice for discerning coffee lovers in more than 46 countries worldwide.
Business
Ceyline Group and Lion Brewery Forge a Sustainable Future with Eco-Friendly Warehousing and Distribution.
Ceyline Total Solutions, the end-to-end logistic solutions provider of Sri Lanka’s leading maritime and logistics group Ceyline, has built Lion Brewery’s first sustainability-focused warehousing and distribution center in just 100 days.
Located in Tangalle, the facility reflects a strong commitment to environmental responsibility. Half of the structure is made from repurposed shipping containers, reducing both waste and carbon emissions. The project, executed by Ceyline’s brand for sustainable living spaces “Out of the Box” features interior fittings made from recycled and reused brewery waste materials, maximizing sustainability and cost efficiency. Ceyline also has already applied for CEB approval to install solar power for the facility to ensure its operation is powered by clean and green energy.
Lion Brewery will further its mission for an efficient and eco-friendly supply chain by incorporating elements such as electric forklifts, rainwater harvesting, and energy-efficient lighting.
This collaboration not only delivers a pioneering green logistics facility but also sets a new benchmark for sustainable warehousing in Sri Lanka. It showcases the power of collaborative innovation in driving responsible industrial development.
Kaveen Gayathma, Senior Vice President (Outbound Logistics) of Lion Brewery, added, “This project further strengthens our distinctive ‘route-to-market’ approach. Our collective efforts in conceptualizing,
drafting, and crafting have culminated in the creation of a truly one-of-a-kind model. The company’s unwavering commitment to environmental stewardship and sustainability is clearly demonstrated here, all while achieving our strategic objectives in a practical and cost-effective manner.”
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