Business

Sri Lanka’s apparel sector well-positioned to reach $8 Bn. export earnings target by 2025

Published

4 years ago

2021/12/17

Industry attempting to attract FDI to Eravur from leading players in fabric – Aroon Hirdaramani

Sri Lanka’s apparel industry expressed confidence in reaching its target of $8 billion in export earnings by 2025, by implementing the concerted initiatives put in place by the sector, in collaboration with the authorities.

These views were expressed at the ‘Sri Lanka Economic Summit 2021’, the flagship event of the Ceylon Chamber of Commerce, held this year on 6th and 7th December 2021, under the theme ‘Springboard for revival: Opportunity to reset’.

Strengthening backward vertical integration and further improving sustainability credentials are vital in achieving the sector’s vision, while enhanced access to key export markets – including within the Asian region – will provide a significant boost in realizing these aspirations, noted the industry.

“At present Sri Lanka accounts for around 1% of the global market share of apparel exports. We are confident that we can reach the industry’s target of $8 billion in export earnings by 2025, by executing the correct strategies,” Sri Lanka Apparel Exporters’ Association (SLAEA) Chairman and Hirdaramani Group Director, Aroon Hirdaramani said. He made these comments as a panellist at the ‘Resetting the Export Portfolio’ session of the summit.

Hirdaramani noted that the efforts to strengthen backward vertical integration of Sri Lanka’s apparel value chain, through initiatives such as the Eravur Fabric Processing Park are critical, particularly in the current context. This would pave the way for the industry to reduce lead times and significantly increase its domestic value addition – which currently stands at around 55%. The latter would also enable Sri Lanka to make greater use of preferential tariff concessions – such as the Generalised Scheme of Preferences (GSP) Plus tariff concessions to the European Union (EU) – a critical market for Sri Lanka in general, and apparel in specific.

“We are working very hard to attract key players in the fabric segment to invest in the new zone, as well as more broadly in fabric mills in Sri Lanka,” Hirdaramani revealed, noting that the zone is expected to be positioned strongly in terms of environmental sustainability.

However, in order to attract such Foreign Direct Investment (FDI) inflows, Sri Lanka needs to strengthen especially its fiscal position and policy, other panellists indicated. This was particularly stressed by the Director of the Growth Lab of the Harvard’s Centre for International Development, Prof Ricardo Hausmann, who made the initial presentation at the session.

“We can gain market share through trade shifts arising from the US – China fallout,” Hirdaramani said further. “The pandemic has also strongly increased the preference for near-shoring among buyers, given how COVID-19 caused vast disruptions to global supply chains. Sri Lanka can position as a hub to serve Asia, but this requires preferential and free trade agreements (FTAs) with more countries in the region.”

The need for greater trade connectivity was also noted by the other panellists. Dilmah Tea – CEO, Dilhan Fernando highlighted the need for FTAs and a more favourable impression of the country internationally, in order for Sri Lanka to expand and diversify its exports. Spa Ceylon – Co-Founder, Shalin Balasuriya too expressed the need for trade linkages, while also drawing attention to the need for trade facilitation – including reducing red-tape associated with the export process.

While securing new FTAs, the panellists – both representatives from the private sector and Sri Lanka’s foreign missions – also voiced the need to retain the existing trade concessions – particularly the GSP+ to the EU.

The panellists, particularly Export Development Board (EDB) – Chairman, Suresh De Mel also emphasised the importance of supporting SMEs in order to increase and diversify exports. In the apparel sector, under the leadership of the Joint Apparel Association Forum (JAAF), initiatives are underway to boost SMEs in the industry.

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Business

Asia stocks slide as US and Iran threaten to escalate war

Published

6 hours ago

2026/03/23

Priyan

Major stock markets in Asia slumped on Monday after Washington and Tehran threatened to escalate hostilities, as the Iran war enters its fourth week.

Japan’s benchmark Nikkei 225 index was almost 3.6% lower, while South Korea’s Kospi fell by almost 6%.

US President Donald Trump warned on Saturday that he would “obliterate” Iranian power plants if Iran did not open the key Strait of Hormuz shipping route. Iran said it would respond to any such strikes by targeting key infrastructure in the region, including energy facilities.

Japan and South Korea have been particularly impacted by the conflict, as they are heavily dependent on oil and gas that would normally pass through the strait.

Iran has effectively blocked the Strait of Hormuz, one of the world’s busiest shipping channels, since the US and Israel attacked the country on 28 February.

About 20% of the world’s oil and liquefied natural gas (LNG) usually passes through the waterway – and the war has sent global fuel prices soaring.

On Monday, International Energy Agency chief Fatih Birol said that the war could see the world facing its worst energy crisis in decades.

Speaking at the National Press Club in Australia’s capital, Birol compared the current energy crisis to those of the 1970s and the impact of Russia’s 2022 invasion of Ukraine.

“This crisis as things stand is now two oil crises and one gas crash put all together,” he said.

“If Iran doesn’t FULLY OPEN, WITHOUT THREAT, the Strait of Hormuz, within 48 HOURS from this exact point in time, the United States of America will hit and obliterate their various POWER PLANTS, STARTING WITH THE BIGGEST ONE FIRST!,” Trump said in a social media post published at 23:44 GMT Saturday.

That threat came after Iranian missiles hit the Israeli city of Dimona, and shortly before a second attack on the town of Arad nearby.

Mohammad Bagher Ghalibaf, the speaker of the Iranian parliament, said on Sunday that energy and desalination infrastructure in the region would be “irreversibly destroyed” if his country’s power plants were attacked.

Such action would significantly escalate the conflict, which has already disrupted global energy supplies, pushing up prices and causing fuel shortages.

Other markets in the Asia-Pacific region were also lower on Monday.

Hong Kong’s Hang was down by almost 3.5% and the Shanghai Stock Exchange Composite index 2.5% lower.

Global oil prices were broadly steady, with Brent crude 0.45% higher at $112.69 (£84.56) a barrel and US-traded oil was up by 0.7% at $98.93.

[BBC]

Business

Healthguard Distribution powers Sri Lanka’s ‘Port to Pharmacy’ medicine supply chain

Published

13 hours ago

2026/03/23

Thilina Walpola

Healthguard Distribution has obtained both ISO 9001:2015 and Good Distribution Practices (GDP) certifications for all seven of its regional distribution centres across Sri Lanka.

Human resources remain the biggest challenge despite advanced logistics

Industry-wide cost pressures are also beginning to surface

In Sri Lanka’s pharmaceutical trade, the journey of a medicine does not end when it arrives at the port. It must still travel safely across the island – through regulated warehouses, temperature-controlled transport and complex distribution routes – before reaching the pharmacy shelf where patients need it.

That journey is increasingly being powered by Healthguard Distribution, the pharmaceutical logistics arm of Sunshine Holdings, whose expanding distribution network now plays a critical role in ensuring the reliable movement of medicines across the country.

At the centre of that network is the company’s Western Regional Distribution Centre (WRDC), a temperature-controlled logistics hub designed to support the safe storage and efficient distribution of pharmaceutical products across the Western Province.

Spanning nearly 18,920 square feet, the facility functions as a key node in the company’s islandwide distribution system. Originally acquired in 2008 to serve as the main warehouse for Swiss Biogenic Ltd., the site evolved alongside the company’s growing operations. Following a major upgrade programme that began in July 2024, the facility recommenced operations in July 2025 as a fully compliant regional distribution centre aligned with international quality standards.

According to Sunshine Pharmaceuticals and Healthguard Distribution Chief Executive Officer Shantha Bandara, the company’s logistics model is built around a simple but comprehensive concept.

“Our approach is ‘Port to Pharmacy’,” Bandara said during a recent media visit. “We collect pharmaceutical consignments from the Port of Colombo, clear them through Customs, store them under regulated conditions and then distribute them to pharmacies across the country. Importers and manufacturers do not have to worry about logistics – we manage the entire process.”

The distribution network today serves over 4,500 authorised pharmaceutical outlets, including pharmacies, hospitals, channeling centres, supermarkets and SPC Osusala outlets. Operations span 150 main towns and 466 sub towns, supported by 111 active delivery routes and seven regional distribution centres located across the island.

Within that system, the WRDC is the largest and among the most technologically advanced hubs.

The facility maintains strict cold-chain conditions for temperature-sensitive medicines. Its cold room capacity has been expanded from 15 cubic metres to 30 cubic metres, enabling compliant storage of products such as insulin within the required 2–8°C range. Online temperature monitoring systems operate across all storage zones while data loggers are used for insulin deliveries to ensure product integrity throughout the supply chain.

Delivery vehicles are also equipped with GPS tracking and temperature monitoring systems, allowing real-time visibility of shipments.

Automation and digital systems are increasingly shaping the operation. Software automation supports invoicing and customer credit verification, while sales teams use digital tools for order canvassing. The company’s enterprise systems provide real-time inventory and accounting visibility, supported by data dashboards used for operational decision-making.

To safeguard continuity, the facility is equipped with a high-capacity backup generator and dedicated on-site fuel storage, ensuring cold rooms, monitoring systems and warehouse operations remain functional even during power outages.

Behind the infrastructure is a workforce of 102 employees, supported by a specialised 15-member value-added services team trained in Good Distribution Practice (GDP), cold-chain management, safety and emergency response.

Yet despite the sophisticated logistics and infrastructure, Bandara told The Island that the most persistent operational challenge lies in human resources.

“We have the infrastructure, the logistics systems and the operational capability,” he noted. “However, maintaining the required number of skilled employees is an ongoing challenge because the labour market is constantly fluctuating. Our HR team is continuously recruiting and training to keep the workforce at the required level.”

Industry-wide cost pressures are also beginning to surface. Company officials noted that rising fuel prices could eventually affect transportation and electricity costs within the distribution chain, which may in turn influence pharmaceutical logistics expenses in the short term.

Still, the broader goal of the company remains unchanged – ensuring that medicines reach patients safely and on time.

From the moment a shipment arrives at the Port of Colombo to the point it reaches a pharmacy shelf, the process depends on precision logistics, regulatory compliance and operational discipline. For Sri Lanka’s healthcare supply chain, Healthguard Distribution’s growing network is becoming a key driver of that journey from port to pharmacy.

By Sanath Nanayakkare

Business

From generation to generation: SINGER secures 20th consecutive People’s Brand title

Published

13 hours ago

2026/03/23

Thilina Walpola

Singer team receiving the award at SLIM-KANTAR People’s Awards 2026. Pic by Kamal Bogoda and Nishendra Silva

Singer Sri Lanka, the nation’s foremost retailer of consumer durables, celebrates a truly historic milestone at the SLIM-KANTAR People’s Awards 2026, securing a prestigious triple victory while marking 20 consecutive years as the People’s Brand of the Year, an achievement made possible by the enduring trust and loyalty of Sri Lankan consumers.

This year, SINGER was honoured with yet another triple win with People’s Brand of the Year, Youth Brand of the Year and People’s Durables Brand of the Year at the awards ceremony. This remarkable recognition reflects the deep and lasting relationship the brand has built with Sri Lankans across generations, standing as a symbol of trust in homes across the island.

Janmesh Antony, Director – Marketing said: “This award belongs to our customers. Being recognised as People’s Brand for 20 years, alongside Youth and Durables Brand, reflects our commitment to staying relevant across generations.”

Mahesh Wijewardene, Group Managing Director said: “Twenty consecutive years as the People’s Brand is humbling and inspiring. This milestone strengthens our commitment to keeping customers at the heart of everything we do.”