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Corrugated Packaging Industry facing multiple challenges, seeks support to cope a little better

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The total board making capacity in the country is around 34,000 – 36,000 metric tonnes per month. However, the printing capacity is limited and does not match the same volume

The net profit margin of the industry is an average of 5% and it can vary around 3%-7%. The industry rarely makes 7% margin and that could happen only when paper prices are at rock-bottom

Bannet Gamalath, CEO – UNIDIL Packaging Ltd – the packaging arm of VALLIBEL ONE PLC) – who is also the President of Lanka Corrugated Carton Manufacturer’s Association says that following the recent IPO announcement made by one of the carton manufacturers, people have started talking about the industry in an interested and excited way.

“In this context, as President of the Lanka Corrugated Cartons Manufacturers Association (LCCMA), I’d like to shed some light on the industry.”

“Today, corrugated cartons are recognised among the world’s most widely used materials for packaging. As a material, it also offers almost unlimited possibilities to produce packaging with different properties and shapes.” he says.

“Despite the fact that this industry serves nearly every sector of the economy becoming an integral part of the supply chain, corrugated cartons have not been regarded as an interesting area of discussion.”

“At present, around 30 small to large corrugated cartons manufacturers operate in the island. Out of these firms, seven companies control 80% of the market share while the remainder contribute around 20%. The demand for the corrugated cartons in Sri Lanka is very limited as our economy has not shown steady growth in the past.”

“The current market is around 14,500 MTNS (metric tonnes) per month and the year-on-year growth of the market is less than 2%. Hence, there is a huge competition among the players to capture the existing market. Consequently with the market pressure, the industry maintains minimal prices and eventually the companies just make normal profit. In early 2000s, many companies discontinued their operation due to heavy losses including the then corrugated giants including MSH Packaging and Nisol Corrugated Packaging.”

“The net profit margin of the industry is an average of 5% and it can vary around 3%-7%. The industry very rarely makes 7% margin and that could happen only when the paper prices are at rock-bottom.”

“Apart from imported paper, the members of the Association also source local paper to a certain extent. The paper manufacturing industry in Sri Lanka is at the infant stage and have yet to expand. Hence, the convertors are being forced to rely upon the imported paper mostly.”

“During past few years the board making capacity in Sri Lanka was expanded as some of the companies increased operations through new corrugated plants. Today these plants contribute a monthly capacity of around 4,000 MTNS while the second level entities maintain a capacity around 2,500 MTNS per month. It is estimated that the total board making capacity in the country is around 34,000 – 36,000 MTNS monthly. However, the printing capacity is limited and does not match the same volumes. Howerver, any company can enhance its printing capacity within 5-6 months as good machinery can be sourced from China and Taiwan.”

“Despite the interest in packaging is growing and the realisation that other sectors cannot survive in isolation without packaging, our industry continues to face many challenges.”

“The latest upsurge of the prices began nearly one and half years ago adversely affecting the industry. As a result, paper prices have escalated by around 70% and this ‘alarming’ upward trend is expected to rise over 100% towards the end of this year. Adding to this crisis, is the huge shortage of paper in the international market consequent to the ill-effects of Covid 19 pandemic. Furthermore, in the midst of this shortage, our members continue to struggle to open LCs with the current dollar restrictions imposed by the local banks.”

“While the industry is equipped with adequate infrastructure to support the future growth of Sri Lanka’s economy, it is also imperative that all the stakeholders and authorities contribute towards a sustainable and thriving packaging industry in Sri Lanka,” Bannet Gamalath says.



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Advocata Institute highlights regulatory barrier limiting women’s overtime earnings

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Advocata Institute says that, a regulatory barrier prevents Sri Lankan women achieving pay parity with their male counterparts despite recent legislative amendments that have opened doors for women to work night shifts.

Despite the 2024 and 2026 liberalizations of the Shop and Office Employees Act (SOEA), which allowed women over 18 to work night shifts in IT, BPO, and hospitality sectors, women remain legally barred from maximizing their income due to rigid overtime restrictions.

Under current regulations, women cannot be employed under the Shop and Office Act for more than nine hours per day, a limit that strictly includes overtime. While Regulation 6 of the Act permits up to twelve hours of overtime per week, this daily “hard cap” creates a practical barrier that prevents women from accessing the full overtime entitlement available to male workers. This creates a regulatory paradox: while the law now permits women to work at night, it simultaneously restricts them from working the hours necessary to take home the same pay as a man performing the same role.

The urgency for reform is underscored by the Sri Lanka Labour Force Survey for the third quarter of 2025, which reveals a significant participation gap. Female labour force participation stands at 33.9 percent, compared to 68.6 percent for men. Closing this gap is a key structural reform priority under Sri Lanka’s International Monetary Fund Extended Fund Facility (EFF) programme, which highlights the importance of modernizing labour laws to expand labour supply and support long-term economic growth.

Debates on reforming these restrictions are often framed around the concern that removing gender-specific protections could expose women to exploitation. However, a woman’s vulnerability in the labour market is shaped less by the absence of gender-specific laws and more by structural challenges such as inadequate public transport, poor workplace infrastructure, weak enforcement of law and order, and limited access to childcare.

Addressing these underlying barriers is critical to ensuring both protection and opportunity. True empowerment requires shifting the focus from paternalistic hour-caps to creating a safe, gender-neutral environment that allows women the agency to maximize their earnings and contribute fully to the national economy.

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Drifting lubricant barrels trigger oil spill on southern coast; 99% of clean-up completed

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Samantha Gunasekara

Authorities have traced the oil contamination reported along sections of the Hikkaduwa and Peraliya coastlines in the Galle District to drifting barrels of industrial lubricant, while rapid response teams have already removed almost all visible oil deposits from the affected beaches.

The Marine Environment Protection Authority (MEPA), together with the Sri Lanka Coast Guard, launched an immediate response after oil patches were detected along about a 20-metre stretch of coastline in the Hikkaduwa and Peraliya areas.

Addressing a media briefing at the Ministry of Environment, MEPA Chairman Samantha Gunasekara said emergency shoreline clean-up operations began on March 7 under the instructions of Environment Minister Dammika Patabendi.

“Nearly 99 percent of the oil patches have already been cleared from the affected coastal stretch,” Gunasekara said, adding that the swift intervention by authorities had prevented the incident from escalating into a wider marine pollution crisis.

Investigations carried out by MEPA have confirmed that the contamination originated from barrels containing Shell Corena S2 P 100 lubricant oil that had apparently been lost at sea and later drifted ashore.

The lubricant manufactured by Shell plc is commonly used to lubricate the internal components of reciprocating piston air compressors. Officials said the substance is not classified as a hazardous or toxic oil, easing initial fears of severe environmental damage.

MEPA General Manager Jagath Gunasekara said monitoring of the coastline was continuing to ensure that no additional oil patches washed ashore.

Meanwhile, the Department of Wildlife Conservation said there had been no confirmed reports of harm to marine animals, including sea turtles and coastal wildlife, following inspections in the affected areas.

Wildlife officials said they were continuing to keep the situation under close observation to ensure that marine fauna along the southern coast remained safe.

Authorities stressed that protecting the ecological integrity of the southern coastal belt—particularly around the Hikkaduwa marine area—remains a priority, while further investigations are under way to determine how the lubricant barrels ended up drifting in Sri Lankan waters.

By Ifham Nizam

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Support for psychological well-being: Launch of telemedicine psychology program in response to Ditwa Cyclone

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The Sri Lanka College of Psychiatrists has launched an innovative telemedicine psychology program designed to provide essential support and mental health care to individuals adversely affected by the Ditwa Cyclone. This initiative is a vital response to the psychological challenges faced by the community in the aftermath of the disaster.

However, the implementation of this program has faced significant obstacles, primarily due to a considerable lack of access to smart devices among the target beneficiaries. Recognizing the urgency of this situation, S-lon Lanka (Pvt) Ltd has made a commendable contribution by donating tablet devices through its corporate social responsibility initiative, the “Suwasahana Charika” Program. This generous donation aims to bridge the technological gap, ensuring that individuals in need can access the psychological services offered by the telemedicine program.

The collaborative efforts were strengthened during a recent event that was attended by key figures, including Mr. S.C. Weerasekara, the Group Director / Chief Operating Officer of The Capital Maharaja Group, and Dr. Dashanthi Akmemana, the Chairman of the Sri Lanka College of Psychiatrists.

The Sri Lanka College of Psychiatrists expressed its gratitude to S-lon Lanka for its support and is committed to addressing the community’s mental health needs during this challenging time.

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