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Weak demand for consumer electronics expected to continue for another 12-18 months

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‘Consumer income has yet to adjust to the higher cost of living’

‘Increase in taxes in early 2023 has weakened purchasing power’

by Sanath Nanayakkare

The electronic products sales market in Sri Lanka is expected to show sustained weakness in the next 12-18 months due to prolonged weak demand, according to a report from Fitch Ratings.

Fitch expects Sri Lanka’s GDP to contract by 1.4% in 2023 (2022: 7.8% decline), before growing modestly by 3.3% in 2024, indicating only a gradual recovery in economic activity.

“Consumer income has yet to adjust to the higher cost of living while the increase in taxes in early 2023 weakened purchasing power”, Fitch states.

The ratings agency expects sales volumes of Singer Sri Lanka, the foremost consumer durables retailer in the country, to rise in the low single digits in the financial year 2024.

The report titled, ‘Fitch Downgrades Singer (Sri Lanka) PLC to ‘A(lka)’; Outlook Stable’, the agency points out that the downgrade reflects the sustained deterioration in Singer’s financial profile such that Fitch-forecasted EBITDAR fixed-charge cover will fall to 0.7x in the financial year ending 31 March 2024 (FY24), compared with 1.1x in FY23.

“The Stable Outlook reflects Singer’s adequate liquidity supported by its access to domestic banks. We expect that the company’s EBITDA will recover gradually in the next two years supported by a slow improvement in demand amid falling interest rates and the removal of the ban on consumer durable imports since October 2023,” Fitch says.

However, Fitch doesn’t expect Singer Sri Lanka’s fixed charge cover to improve to above 1.2x – the level commensurate with a higher rating – until after FY25.

“We forecast Singer’s sales volumes to grow by double digits in FY25, due to a gradual recovery in income supported by a revival in the agriculture sector, which accounts for 30% of the population, salary increments across the public and private sectors, and a full year’s impact of pent-up demand after the removal of a ban on consumer-durables imports in October 2023. Hire-purchase (HP) and credit sales should also rise with interest rates almost halving from the highs in FY23, and we expect Singer will selectively grow its HP book, which shrank in the last few years, to cater to this demand. We expect Singer’s EBITDAR margin to improve to around 9% in FY25, from 3.3% in 1HFY24, benefitting from revenue growth, prudent inventory management, and a shift towards high-margin product categories.

“We estimate Singer’s cash interest to reduce by 35% in FY24 as interest rates fall. Market interest rates have fallen to 13% by November 2023, from 30% a year ago. Given most of Singer’s debt is short-term, the company should be able reprice faster at favourable rates. However, we do not believe Singer’s EBITDAR generation in FY24 will be sufficient to cover the reduced interest cost,” Fitch says.

According to the report, Singer’s rating is not notched for support from its stronger parent, Hayleys PLC, as they believe Hayleys has limited incentive to provide support according to their Parent and Subsidiary Linkage Rating Criteria.

“The ‘Low’ legal incentive stems from the absence of corporate guarantees from Hayleys on Singer’s debt, and the lack of cross-default clauses between the two entities. Hayleys is a highly diversified group, resulting in limited operational synergies with Singer. Furthermore, Singer has an independent management team and its brand is separate from that of Hayleys. Therefore, the operational incentive to support is also regarded as ‘Low’, Fitch says.



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Business

Shark and Ray Karawala

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Sun drying of ray meat

When we buy shark dry fish (Mora Karawala), do we really know what species we are consuming? What if endangered sharks are hiding in our meal? Most consumers are unaware.

In Sri Lanka, dried fish is more than food; it is a flavour, a tradition and a way of life. Affordable, long-lasting, and rich in taste, it has become a staple across the island, mainly in rural communities, the dry zone, and hill country. While most fish are eaten fresh, about 14% of the catch is preserved through age-old methods, such as salting, sun drying, smoking and fermentation. Whether served as a main dish (Karawala) or as a flavourful condiment (Umbalakada), dried fish has secured a special place on Sri Lankan plates.

Today, nearly two-thirds of the demand for dry fish is met locally, with dried sharks being the most common and popular in markets. And many people believe that milk sharks are particularly nutritious for lactating mothers.

Typically, part of the excess fish supply in peak seasons, fish arrive late from multiday fishing boats, fish from the bottom of nets, fish that are susceptible to quick spoilage or have low market appeal, are used to produce dry fish rather than letting this resource go to waste. In many coastal villages, drying fish is carried out at the fishing “waadi” (fishing villages/houses) level, often led by women as a means of earning supplementary income.

But this comes with a cost. Sharks and Rays are slow-growing, late maturing and producing only a few young cannot keep up with rising demand. Sharks and Rays are captured by large-scale artisanal fisheries and often retained as bycatch. Mainly exploited for their meat and other derivatives, including gill plates, fins, and skins.  Overfishing has pushed their populations into serious decline.

In Sri Lanka, over 60–70% of shark and ray species are threatened with extinction according to the IUCN Red List, with many others listed as Data Deficient — meaning their true status may be even worse. Only a handful of species might be considered less at risk, but even those assessments are uncertain.

Sun drying of ray meat

Once dried, it becomes nearly impossible to identify which species are being sold. Drying removes distinguishing features, making it impossible to verify the species or ensure sustainability. Labelling is virtually non-existent, and consumers have no reliable way to tell which species they are purchasing.

This means endangered sharks are likely ending up on plates across the country — without anyone realising it. Given the high proportion of threatened species and the lack of transparency, the safest and most responsible choice is to avoid all shark-based dried fish entirely.

By choosing alternative dried fish products made from more sustainable species, we can protect Sri Lanka’s marine biodiversity and ensure that our cultural traditions remain part of a future where sharks still swim in our oceans.

About the Author:

Apsara Rupasinghe, a zoologist with a BSc (Hons) Degree in Zoology, is pursuing MPhil research on shark and ray genetics at BRT-FiPo, with a background in conservation genetics and population genetics. Her work involves combining genetics and conservation to improve species identification and protect endangered elasmobranch species. Apsara pays special attention to the dry fish industry in Sri Lanka as part of her research.

by Apsara Rupasinghe

(Researcher, Fisheries and Policy Programme, Blue Resources Trust)

 

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SPAR Sri Lanka opens first Kandy outlet, redefining modern retail in hill capital

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From left to right : Oliver Sabatino- General Manager, Daham Gunasena - Director Commercial, Kumar De Silva Chief Executive Officer, Pasan De Siva Head of Finance , Kumila Gunasekera- Head of new business Development Chamira Suraweera Head of HR, Mevan Fernando Head of IT.

SPAR Sri Lanka marked a significant milestone with the opening of its 12th outlet—its first in the historic city of Kandy and only the second outside the Western Province. Established in 2018 as a joint venture between SPAR South Africa Group and Ceylon Biscuits Limited, SPAR Sri Lanka combines global expertise with strong local roots.

Speaking at the launch, CEO of SPAR Sri Lanka highlighted the cultural and commercial significance of Kandy, noting that the brand’s aim is “not just to open a store, but to serve the community in a meaningful and relevant way.”

The Kandy outlet offers over 6,200 products, with nearly 3,900 locally sourced, supporting farmers, producers, and SMEs, while the remaining range includes imported SPAR international brands. Innovative features such as a dedicated pet care section, TOPs liquor store, pharmacy, and banking facilities create a one-stop lifestyle destination.

SPAR Sri Lanka is also fostering youth employment and professional development, providing structured training programs to equip staff with globally recognised retail skills. The store has created over 50 jobs in the region and supports local suppliers in meeting international standards, opening doors for broader market access.

With its SPAR2U online platform and SPAR Rewards app, customers can enjoy convenience and value, while the company’s ecosystem approach supports retailers, suppliers, and communities alike. The brand’s next expansion is scheduled in Kurunegala, underscoring SPAR Sri Lanka’s vision of reshaping retail while uplifting local economies.

Text and Pic By S.K Samaranayake 

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Sri Lanka Insurance Life Honoured at Great Managers Awards, Becoming First SOE to Achieve this Recognition

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SLIC Life team after receiving their awards (L-R) Ruchira Edirisinghe - Brand Manager, Amali Gomez – Manager Corporate & Marketing Communications, Chaminda Athauda - Deputy General Manager Life, Nalin Subasinghe – Chief Executive Officer, Jagath Welgama – Deputy General Manager National Sales, Duminda Peiris –AGM/Zonal Head, Manjula Darmaprema –Branch Manager Pilimathalawa and Uththara Kapugamage – Manager Employee Engagement

Sri Lanka Insurance Life (SLIC Life) was recognised at the prestigious ‘Great Managers Awards 2025’, held on 26th March 2026 at Cinnamon Grand, Colombo, marking a significant milestone as the first State-Owned Enterprise (SOE) to receive this recognition.

Organised by CLA Coaching in collaboration with the Colombo Leadership Academy, the awards recognise organisations and individuals who demonstrate excellence in leadership and managerial effectiveness, benchmarked against global best practices through a rigorous evaluation process.

Sri Lanka Insurance Life was recognised under the category of ‘Companies with Great Managers’, reflecting its commitment to nurturing leadership talent and building a culture that supports sustainable performance and people development.

Several SLIC Life team members were also honoured across multiple categories, highlighting the depth of leadership within the organisation. Duminda Pieris, Assistant General Manager/Zonal Head, was recognised for Driving Results and Execution Excellence, while Chaminda Athauda, Deputy General Manager – Life, received recognition for Aligning Organisational Vision. Jagath Welgama, Deputy General Manager – National Sales, and Manjula Darmaprema Branch Manager – Pilimathalawa were acknowledged for Building Team Effectiveness and Collaboration. Amali Gomez, Manager – Corporate & Marketing Communications, was recognised for Integrality and Holistic Approach. Ruchira Edirisinghe, Brand Manager, and Uththara Kapugamage, Manager – Employee Engagement, were both recognised as Great Millennial Managers.

Commenting on the achievement, Nalin Subasinghe Chief Executive Officer of Sri Lanka Insurance Life stated: “We are truly humbled and honoured to be recognised at the Great Managers Awards 2025, especially as the first State-Owned Enterprise to receive this accolade. This achievement is a testament to the strength, dedication, and professionalism of our team, who continue to demonstrate exceptional leadership across all levels of the organisation. We take great pride in this collective success.” He further added, “We also commend this initiative for its role in encouraging organisations to nurture and develop future leaders. Platforms such as these are vital in shaping strong leadership cultures that drive sustainable business success and industry-wide progress.”

This recognition underscores Sri Lanka Insurance Life’s ongoing commitment to developing its people, strengthening leadership capabilities, and fostering a high-performance culture that contributes to long-term organisational success.

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