latest business ideas in sri lanka

50 Best Business Ideas In Sri Lanka [2024]

Interested in starting a business in Sri Lanka in 2024?

Southeast of the Arabian sea, Sri Lanka is a green, fertile tropical Island featuring palm-fringed beaches, misty mountains, and significant archaeology.

The country boasts a bilateral investment-protection agreement and a double-taxation avoidance agreement with U.S.A, U.K, Australia, and other countries.

Besides, Sri Lanka has a sophisticated and transparent regulatory and legal framework, which provides safety to foreign investors.

Finally, Sri Lanka's geo-strategic location makes it ideal for setting up operations and doing business. Startup owners have the opportunity to enter newer markets through multiple shipping routes.

We put together 50 of the best businesses you can start in Sri Lanka today.

In this list of ideas, you can find:

• Home-based businesses to start in Sri Lanka
• Profitable online business ideas
• Unique business opportunities for Sri Lanka
• Low investment business ideas (under $5k to start)
• Easy businesses you can start in Sri Lanka today

For each business idea, we'll show you real-world examples, revenue expectations for each idea, + a step-by-step on how to start your small business in Sri Lanka.

Here's the full list:

1. Start an affiliate marketing business

Are you looking for a side hustle to pay you a passive income? Affiliate marketing is one of those side hustles that will pay you well over the long term. It is a way to earn money online by promoting other companies' products and services. You will be paid a commission for each sale you make as an affiliate marketer.

To get started, learn how to find the right product and brand to partner with. For example, you may prefer becoming an affiliate marketer for an eCommerce store, partnering with a manufacturer, and marketing their products for a commission.

How much you can make: $500 — $773,000/month

How much does it cost to start: $500 (?)

How long does it take to build: 55 days (?)

Bar Games 101 is an authority website about classic bar games with over 200K monthly visitors and revenue over $4,000 for the month of August, achieved through consistent publishing of researched articles and outsourcing by the founder.

2. Start a SEO agency

An SEO agency is a company that provides search engine optimization services to businesses. The function of an SEO agency is to help businesses rank higher in search engines through organic or paid means.

SEO is a rapidly growing industry, with experts across all aspects of the field already making six-figure incomes and expecting to see these earnings grow dramatically over the next few years. Getting into SEO today, before it gets too saturated, will allow you to establish a strong base in a new career, with an excellent chance for success.

It’s easier than ever to start your SEO agency in Sri Lanka. The tools are there, and the competition isn’t as stiff as it used to be. If you’re considering starting an SEO or digital marketing agency, it might be a good idea to learn how other digital agencies succeed.

How much you can make: $1,000 — $1,800,000/month

How much does it cost to start: $1,000 (?)

How long does it take to build: 60 days (?)

Rankings.io is a hyper-focused SEO agency that helps elite personal injury law firms dominate first page rankings and was ranked #858 in the Inc. 5000 list of the fastest-growing companies in America for 2018, with a current revenue just under $300,000 per month, with plans for a record-breaking year.

3. Become a crypto trader

Crypto trading is an exciting market with a reputation for higher returns than some traditional investments.

Note that cryptocurrencies are incredibly volatile (and this is not investment advice).

When you start, opt for small-stake trades that allow you to get a handle on the market with minimal risk. Trade through a secure wallet provided by a reputable broker such as Coinbase or Binance. Take time to practice technical analysis, an essential research skill to help you read charts and identify patterns to inform your crypto trading strategies.

How much you can make: $1,000 — $30,000/month

How long does it take to build: 135 days (?)

Exolix is an anonymous cryptocurrency exchange platform with a fixed rate and unlimited exchange that provides its users with fast, easy, and secure exchange processes.

4. Start a food truck

Food trucks are a highly profitable business that offers customers a variety of meal options out of a mobile truck. This basically operates inside a large vehicle equipped with kitchen and food products. Starting a food truck is a dream for many people, but it's more challenging than it looks. To make it work, you need the ideal location and menu.

To start a food truck business in a particular city, it is mandatory to check what kind of food trucks are already operating, identify a gap, and bring in some new experiences. Then, with the right plan and the right approach, you can be on your way to starting your own food truck empire.

How much you can make: $29,166 — $61,650,000/month

How long does it take to build: 75 days (?)

Time commitment per week: Min. 5 hours/week

Food Fleet grew over 160% in just one year and managed over 20 million in sales for its clients, securing multiple contracts with the likes of Sodexo, Levy Restaurants and more, due to its understanding of catering client needs and its advanced turnkey and design services.

5. Become a software developer

A software developer is a person who creates computer programs. They design, test, and oversee the creation of software for a variety of purposes including businesses, personal use, or social networking.

If you have strong technical skills and experience in programming, you can start a software development business. You should also have a good understanding of how the software works.

The average salary for software developers is $110,140 . The best-paid 25 percent earn an annual income of up to 140K dollars while the lowest-paid workers make just under 84K dollars.

The recent trends in software development are moving towards mobile apps and cloud-based solutions. Businesses are providing a variety of programming languages and tools to create software that meets the client's needs.

Starting a software development company is the perfect way to explore in this exciting industry. This type of business is growing in popularity as businesses are looking for ways to offer their customers a convenient way to access their data and applications.

How much you can make: $1,700 — $465,583,333/month

How long does it take to build: 180 days (?)

SkyVerge, a software company, has grown rapidly with revenue of $350,000 per month, over 100,000 eCommerce customers, and a globally distributed team of 30 people, all through starting with consulting projects and building focused and solutions-based products, acquiring small products from other developers, and focusing largely on content marketing and providing excellent customer support.

6. Start a mobile photography business

Want to start your own photography business? You're not alone. With the rise of social media and photo-sharing, blogging, and online retailing, it's never been easier to start making money behind your camera.

There are photographers shooting weddings, creating images for ad campaigns, freelancing for magazines, touring the world, taking photographs of destinations — the list is endless!

To start mobile photography in Sri Lanka, research the target audience and determine which specialization area is more lucrative. Invest in high-quality, professional cameras, lenses, and a computer with professional software photo-editing software.

How much you can make: $2,000 — $500,000/month

How much does it cost to start: $5,000 (?)

How long does it take to build: 200 days (?)

Photobooth Supply Co. offers a profitable business opportunity through their sleek and portable photo booths, with up to 97% satisfaction rate and a focus on customer experience, in a fast-growing event industry where photo booths are exploding.

7. Start a blog

In recent years, blogging has become a highly sought-after & lucrative Business. This location-independent business is a creative outlet to reach a broader audience and even work at any time. According to Optinmonster’s list of blogging statistics and facts:

• Blogs have been rated as the 5th most trustworthy source of gathering online information.
• 77% of internet users read blogs.
• Each month, approximately 409 million people view more than 20 billion pages.

Originally blogging started as an online journal, but today it is a highly profitable career option. Many people are choosing blogging as their full-time career and are earning their bread and butter from this profession.

If you want to start blogging as a side hustle or as a full-time profession, choose a niche you will enjoy writing about and have a content strategy ready. Then, create a mailing list, and decide on a good blog posting routine to keep your audience engaged.

How much you can make: $200 — $160,000/month

How long does it take to build: 37 days (?)

Learn how one couple created a successful personal finance blog, The Savvy Couple, that now makes over $20,000 per month and has sold thousands of digital workbooks and courses, by focusing on purposeful content and optimizing their ROI with efficient time management.

8. Start a podcast

The podcast business involves creating and producing audio content that people can listen to online.

It’s a popular form of entertainment and information-sharing.

To start a podcast business on a budget, you'll need a few key steps.

First, choose a niche or topic that you're passionate about and that has an audience.

Next, get basic recording equipment like a microphone and headphones.

Then, find a free or affordable hosting platform to publish your episodes.

Finally, promote your podcast through social media, online communities, and word of mouth to build an audience and potentially attract sponsors or advertisers.

How much you can make: $400 — $1,020,000/month

How much does it cost to start: $2,000 (?)

Time commitment per week: Min. 2 hours/week

A successful podcast production company that grew from one client making $15/hour to a team of 10 contractors producing over 30 shows per week with revenue of over $10k/mo, primarily through referrals and with a focus on providing high personal touch and being picky about working only with clients who are a good fit.

9. Start a travel agency

Are you a passionate traveler with entrepreneurial skills? Then starting a travel agency can be a great career choice for you.

As a travel agency, you'll be responsible for linking travelers to providers of all the travel and tourism-related services such as accommodation, transportation, sightseeing, tour guides, local adventure, etc.

Starting an online travel agency is a lot easier than you might think. You'll need to perform market research, get a few necessary certifications (such as your IATA number), study competition, build a website, and do proper marketing.

To maximize earnings, negotiate discounts from the industry service providers, and charge travelers within the market rate.

How much you can make: $2,000 — $114,200,000/month

How long does it take to build: 90 days (?)

Total Travel Solution is a 6-figure (USD) company that sells the best quality Sri Lanka and Maldives tour packages to tourists from all over the world, generating a sales revenue of about USD 2 million from 2012 to 2018 while maintaining their growth through honest, trustworthy, and high-quality services.

10. Start a beverage company

Are you thinking of starting a beverage or drink business?

Starting a beverage company can be a great way to combine your love of food and drink with a passion for entrepreneurship.

Beverage companies can make all sorts of different drinks, from juice to soda to beer. They can also sell other types of food products, like bottled water or snacks.

There are more and more drink options available today than ever before—and that means that beverage companies are constantly trying new things in order to stay competitive in this space! The more innovative they can be with their offerings, the better they'll be able to compete with one another

How much you can make: $500 — $200,000,000/month

How long does it take to build: 250 days (?)

BruMate is a successful insulated drinkware brand focused on the adult beverage community, with a flagship product that generated $2.1M in sales in 2017 and is now doing over $1.1M per month in sales, with plans to do $20M this year.

11. Create an online course

An online course business involves creating and selling digital classes teaching specialized skills or knowledge to subscribed students.

As an entrepreneurial course creator, you identify educational gaps around topics you have expertise in and develop engaging video lessons and supplementary materials.

With flexibility around self-paced or cohort-based structures, building a student base provides passive income potential.

For founders who enjoy information-sharing, launching an online course platform presents a lucrative way to monetize your instructional talents with small startup costs by serving eager lifelong learners seeking convenient access to emerging subjects.

How much you can make: $350 — $3,735,000/month

How much does it cost to start: $1,700 (?)

12. Start an instagram fan account

An Instagram fan account aims at supporting or appreciating a celebrity, a public fan, a brand, or an organization. The fan account covers the subject's daily movements and breaks stories about the fan, to keep their target audience entertained and updated.

An Instagram fan page earns profits through promotions and advertisements from interesting brands.

Are you interested in a celebrity, public figure, brand, or organization?

You can create an Instagram fan account and show your support or share opinions of the individual or brands through the Instagram account.

How much you can make: $500/month

A 15-year-old boy created an Instagram fan page for NFL player Ezekial Elliott which garnered 50,000 engaged followers and nearly 20,000 additional followers in the last two months alone, with currently no expenses aside from ads, and hopes to start selling his own products.

13. Start a voice over service

Voiceover artist is an auditory performer who uses their voice in scripted presentations. The role of a voiceover artist is only to be heard but not to be seen.

Working as a voiceover artist is an opportunity to choose the projects you enjoy engaging in. The role of a voiceover artist is also fun and can help you meet new people.

To become a voiceover artist in Sri Lanka, start practicing aloud reading so you familiarize yourself with your sound. Then, create your recording studio where you can practice your voiceover skills. It would help if you had a quality microphone, professional recording software, a computer, and soundproofing materials.

How much you can make: $400 — $60,000/month

Voice Crafters, a multilingual voice-over agency and marketplace founded by Mony Raanan, doubled their revenue to over $765,000 in 2022 with a bottom line of around 30% after transitioning to an online marketplace and carefully vetting their network of over 1,000 professional voice actors in more than 80 languages.

14. Start a language translation service

Language translation services bridge the linguistic barriers, helping businesses reach a wider audience outside of a single language. A language translation job is an opportunity to cover a wide range of topics and meet people from different cultures.

To become a language translator in Sri Lanka, master a second language and earn some experience so you become fluent in the second language.

How much you can make: $40,000 — $550,000/month

How long does it take to build: 70 days (?)

DEMAN Translations grew from 6 employees and 1.5 million euros in turnover in 2015 to 17 team members and 3.5 million euros in sales in 2020 after acquiring 12 other translation agencies, with a goal to reach 6 million euros this year and 10 million euros in 2022.

15. Start a web design & online marketing business

If you know about website design and marketing concepts then starting your own web design and online marketing business could be the perfect opportunity for you to do so.

The online marketing industry is the second largest industry in the United States and continues to grow. The online marketing industry is massive. It is estimated to grow by 30% annually, reaching $400B in the next four years.

How much you can make: $6,000 — $800,000/month

How Shannon Mattern built a DIY web design training business from scratch that now generates $10k/month in revenue through affiliate commissions and courses, without outside investment or debt.

16. Start a digital marketing business

Digital marketing businesses serve local and international companies to expand their reach and grow revenue. A top reason digital marketing is so exciting is that the field is constantly evolving and is easy to learn.

If you plan to start a digital marketing business in Sri Lanka, educate yourself and understand how digital marketing agencies work. Then, focus on building your digital skills and advancing your career through online digital marketing courses.

To stand out, find a digital marketing niche and focus on the audience interested in your services.

How much you can make: $2,000 — $6,660,000/month

How much does it cost to start: $1,260 (?)

How long does it take to build: 58 days (?)

H-supertools founder Hasan developed a set of free SEO and digital marketing tools generating $2k per month in profit using Google Adsense, affiliate marketing, selling ad spaces, and email, plans to launch a membership option, and has attained over 80k registered users and 300k monthly visits in less than two years.

17. Become a virtual assistant

Virtual assistants support businesses, teams, or individuals by performing administrative tasks remotely. As businesses these days tend to outsource their tasks, the demand for virtual assistants is growing rapidly.

Becoming a virtual assistant is flexible, as you can choose a work schedule and location at your convenience. Many virtual assistants in Sri Lanka have a dedicated home office where they work in a quiet and distraction-free environment.

To become a virtual assistant, identify a niche you like and undertake any training. Then, figure out how much to charge your customers and create an online presence where you can apply for jobs. As a virtual assistant, you can define your work schedule depending on your availability.

How much you can make: $1,000 — $1,000,000/month

Filipino Virtual Assistance by FVA Business Consultancy, founded by Julmar Grace Locsin, offers online and offline training to empower marketers, enable businesses, and equip freelancers which has trained 25,000 students from their 31 courses, has 16 coaches assigned from different territories, and fifteen in the FVA team for global digital leadership that will impact the world through digitalization, one life at a time.

18. Start a real estate business

Are you a qualified architect with a broad range of knowledge in the real estate field? Starting a real estate business can be a profitable venture.

Real estate involves purchasing, selling, managing, or investing in land and buildings.

To become a successful real estate business owner, you must have finely honed visual awareness and a strong understanding of various building materials and structures.

How much you can make: $5,000 — $1,500,000/month

This case study is about T. C. Lewis & Co, a real estate investment and management firm that successfully diversified their approach to include sales, development, remodeling, and construction, with property management being the key to investor doors and organic growth.

19. Become a proofreader

Proofreading business is a service that helps customers review their written work and ensure it is ready for publication. Typically, a proofreader corrects grammatical errors and provides the written piece meets any relevant style guide.

As a proofreader, you can work online, allowing you to choose what time to work.

If you plan to start a professional proofreading business in Sri Lanka, make sure you possess the following skills:

• Have an excellent grasp of grammar
• Ability to correct mistakenly capitalized words
• Familiarity with the proper use of capitalization
• Use spell-checkers to flag misspelled words

Proofreading is a great way to enhance content quality. With the increased use of written content marketing to reach a broader market, the demand for professional proofreaders has grown tremendously. Professional proofreaders earn an average of $12/hr. And $30/hr.

Therefore, consider proofreading as a business if you are looking for a great side hustle idea or simply looking for ways to increase your income.

How much you can make: $2,000/month

A proofreader was able to build a consistent income of ~$2,000 per month from scratch with zero experience in the field, no expenses, and barely any upfront costs by targeting bloggers and content creators who want their content to be copy edited and proofread.

20. Start a freelancer platform

Freelancer platform is a place where people come with skills and services to offer and people come who need those skills and services. So we can say freelancer platforms are a marketplace for sellers and buyers of services and skills.

The freelancing industry is growing rapidly and it's becoming a popular career option for people who are "non-traditional" employees. The global Freelance Platforms market size is expected to reach $6.7B by the year 2025 . While working on a full-time job, freelancers simultaneously work on a freelance career. The platforms available online help them to increase their business by attracting new clients.

With all of the businesses looking for help on their websites, it would be a good idea to start a freelancer platform. Freelance platforms do well because people have jobs that need to be done and businesses have the resources to pay for the job at hand.

How much you can make: $3,000 — $5,000,000/month

How long does it take to build: 80 days (?)

CloudDevs, a tech talent platform that sources and vets freelance tech talent and matches them with companies, has achieved $1 million in GMV in its first year, plans to achieve 100% growth year on year, and focuses on customer loyalty through its Net Promoter Score metric.

21. Start a cleaning business

Starting a cleaning business is an excellent opportunity to be your boss and make money doing what you love. This business is relatively easy to create and does not require much equipment or funds.

There are many cleaning services, so deciding what services (or combination of services) you will offer and what hours of the day or week those services will be available is essential.

To start cleaning service in Sri Lanka, you’ll want to consider investing in professional cleaning equipment such as a vacuum cleaner, a quality mop, and a good cleaning bucket. You will also need to buy environment-friendly cleaning products such as detergent, bleach, paper towels, and trash bags.

How much you can make: $2,000 — $708,333/month

MaidThis®, launched by Neel Parekh in Los Angeles with just one cleaner in 2013, has achieved over $10 million in total revenue by focusing on cleaning Airbnbs and vacation rentals, thanks to its successful remote business model and new-age marketing tactics, and has now launched MaidThis Franchise to expand the business further.

22. Become an Upwork freelancer

There are thousands of categories available to offer your services. Upwork has become a huge platform, attracting millions of people that search for reliable freelancers to work with. Take a moment to go through all the categories and then analyze the profiles of the best-rated users on the ones you're interested. A good tip to start is to offer low prices, in the beginning, to get more reviews quickly and thus climb through the ranks. Once you got a reputation and a track record, you'll be able to charge more.

How much you can make: $3,500/month

Daniel Waldman started his freelance writing business over three years ago and has since earned an average of $3,500 per month, mostly through referrals and Fiverr - offering blogging, article writing, website copywriting and editing services.

23. Start a proposal software app

A proposal software app is a program that streamlines the process of creating, sending, and closing proposals, quotes, contracts, and other sales documents. The common users of proposal apps include consultants and business executives who want to generate a personalized and professional-looking proposal. A good example of a proposal software app is Proposify

In creating your proposal app, first, understand how the target users interact with their proposals. Then, provide them with a suite of options so they choose ones that they feel convenient to use. Ensure your software enables the user to produce sleek business proposals quickly.

Typically, the proposal software should be intuitive for any user and should include critical automation and support client interaction tracking, to make proposal creation easy. Build a great product that solves your customer’s pain.

Finally, set up a customer support team that will be directly responsible for guiding customers through the onboarding process, and work towards retaining and expanding accounts.

How much you can make: $570,000/month

How much does it cost to start: $100 (?)

How long does it take to build: 205 days (?)

Proposify, an online business proposal SaaS company, currently serving over 8,000 customers and doing over $7M in annual recurring revenue, was founded by CEO Kyle Racki who turned his old proposal app idea into a successful business by focusing on user pain points, building a great product, and prioritizing customer service.

24. Start an online bakery

An online bakery is a business that sells baked goods through the internet.

To start an online bakery, first identify your specialty (like cookies, cupcakes, or bread) and gather basic baking equipment.

Next, create a simple website or use a platform like social media to showcase your products.

Take quality photos, set reasonable prices, and promote your online bakery through social media, local communities, and word of mouth to attract customers.

As orders come in, bake fresh treats, pack them securely, and arrange for reliable delivery or pickup options.

According to statistics, the global bakery products market size was $398B in 2020 . The market is projected to grow from $416B in 2021 to $590B by 2028.

How much you can make: $25,000/month

How much does it cost to start: $7,000 (?)

French chef and founder of online bakery Pastreez, Anthony Rosemond, shares keys to success including validating ideas with the market, focusing on SEO and organic growth, building customer relationships through email and SMS, never offering discounts but offering freebies, and diversifying the business with new products and content on social media.

25. Start a boutique

You may consider opening a boutique if you are passionate about the fashion and textile industry.

A boutique is a shop that sells clothes. Opening a boutique is a dream for entrepreneurs who want to experience the joy and freedom of owning a cash business. Starting a boutique is easy and can be managed by a single individual. In addition, a boutique requires a comparatively smaller capital to start.

To succeed, the boutique owner must coming creativity and passion.

How much you can make: $10,000 — $25,000/month

Boutique Rye is an online-only women's clothing and accessories boutique that has grown to 3,200 Facebook Group members and a successful website through organic customer sharing, live sales, and open communication with customers.

26. Start an online advertising agency

An online advertising agency helps businesses promote their products or services on the internet.

To start this business on a budget, first learn the basics of digital marketing through free online resources.

Create a professional website and set up profiles on social media platforms to showcase your skills.

Build a portfolio by working on mock campaigns or offering discounted services to friends and family, and gradually market your services to attract clients.

With dedication, you can grow your agency over time.

How much you can make: $2,797 — $1,250,000/month

How much does it cost to start: $2,500 (?)

How long does it take to build: 45 days (?)

Iman Gadzhi made over $1.2M in profit within two years with his social media marketing agency and education company, where he teaches entrepreneurs how to start and scale a profitable SMMA, with over 45 of his students making over six figures with their SMMA, and over 300 students having quit their regular jobs.

27. Start a mobile app development business

Mobile app development is the process of creating software applications that run on mobile devices. These apps can be used for a variety of purposes, including games, productivity, and social networking.

Starting a mobile app development business is a great way to enter the world of software development. This type of company is growing in popularity as businesses are looking for ways to reach their customers through mobile apps.

To start a mobile app development company, you need to have strong technical skills and be able to develop high-quality software. You should also have a good understanding of how to market and sell mobile apps

How much you can make: $7,500 — $2,333,333/month

How much does it cost to start: $7,500 (?)

How long does it take to build: 120 days (?)

"We started a custom iOS and Android app development consultancy that now makes nearly seven-figures a year by landing clients like Great Clips and the USA CUP after building successful concept apps."

28. Start a travel agency

29. Become a mobile personal trainer

Do you love helping people through their fitness journey? If you want a great side hustle to earn extra income, consider becoming a personal trainer.

The fitness trainer side hustle can be an adamant industry to earn good money. However, once you develop a reputation as a good trainer, you can get more clients through referrals. You need to register for the certification course to start offering personal trainer services in Sri Lanka.

To attract your first clients, consider online advertising, and seek referrals from every customer.

How much you can make: $600 — $8,333,333/month

How long does it take to build: 532 days (?)

Time commitment per week: Min. 4 hours/week

Live Fit, a personal training company founded in 2011, grew from earning $80,000 in their first year with two trainers to earning over $760,000 in 2019 with 12 trainers and two locations, thanks to a focus on building trusting relationships and providing a variety of services to clients.

30. Start a dropshipping business

Dropshipping is a business model where you sell products to customers without holding inventory.

Instead, when a customer makes a purchase, you buy the product from a third-party supplier, who then ships it directly to the customer.

To start a dropshipping business on a budget, choose a niche or category of products you want to sell.

Next, set up an online store using platforms like Shopify or WooCommerce. Then, find reliable suppliers from platforms like AliExpress, list their products on your store, and focus on marketing and customer service to grow your business.

Remember to carefully manage your expenses and monitor your profit margins to ensure profitability.

How much you can make: $6,000 — $3,000,000/month

How much does it cost to start: $6,000 (?)

Time commitment per week: Min. 10 hours/week

Entrepreneur Kamil Sattar has developed multiple six-figure drop shipping businesses, and his company, e-commerce mentoring, specializes in helping others create their own successful companies, with favorite platforms including using Shopify and apps such as Loox reviews and SMSBump.

31. Start a content writing company

Content writing involves writing, editing, and publishing content in a digital format. Examples of content include a blog post, product description, and podcast script—eBooks, press releases, or landing page content.

Becoming a content writer allows you to work as your boss. Therefore, you choose whatever working schedule suits you and take a manageable workload. Moreover, content writing helps you develop essential skills you may not obtain from regular writing.

Content writing is a highly-on-demand service, as companies compete for the online audience who often begin their shopping journey by searching for relevant and educative content online. Therefore, a content writing company is an excellent source of passive income.

To start a content writing company in Sri Lanka, research the market and choose a suitable niche. Sketch a proper business plan and create a website. Hire a pool of talented writers and leverage modern technology to streamline operations.

How much you can make: $1,000 — $250,000/month

How much does it cost to start: $550 (?)

How long does it take to build: 30 days (?)

Scribly.io, a subscription-based copywriting service providing high quality content that helps businesses scale at roughly 50% of the cost of hiring in-house, created by Dani, a first-time entrepreneur who started with just a few hundred dollars worth of projects and with the help of three other writers; as of last month, Scribly.io topped $14K monthly revenue.

32. Start a healthy food processing business

With the growing preference for healthy and functional food, starting a healthy food processing plant can be rewarding.

The advancements in the food processing industry, innovation in processing technology, and continuous growth in demand for processed food are some excellent reasons to consider opening a healthy food processing business.

To start a healthy food processing plant, find out a market gap, and research the demand. Understand customers changing tastes and focus on offering the best throughout.

How much you can make: $52,944/month

Bluebird Provisions Bone Broth is North America's fastest-growing bone broth brand, doing 49,000 per month and growing 50% YoY, with 5000% growth in customer base since starting, thanks to an SEO-focused strategy, email marketing, referrals, and Amazon.

33. Start a restaurant

If you love cooking and are passionate about entrepreneurship, starting a restaurant can be a fun and lucrative business.

To get started, choose a great location, and hire an excellent support team. You will need a chef to inspect the food and line cooks, waiters, and waitresses to serve the customers. No matter the restaurant type, you need great culinary and business skills to make your dream come true.

If you plan to open a restaurant in Sri Lanka, gain insight from consumer preferences and focus on serving modern consumers what they need.

How much you can make: $48,333 — $61,650,000/month

One Life Meals is a Toronto-based healthy meal delivery service that made 14,500 meals per month and generated $130k in monthly sales in 2018 through their one-on-one consultation, lean protein and seasonal veggies-based meals, and their focus on the client experience.

34. Start a hotels business

If you are considering starting a hotel, then it is time to implement your plan. There are five key elements to understand if you want to succeed in this industry: location, size, budget, experience, and market demand.

Here are some tips to consider before forming a hotel:

• Name your business
• Decide on a marketing strategy
• Start by renting out a room in your home.
• Hire a business capital broker
• Make a marketing plan
• Offer complementary services

How much you can make: $15,000/month

How long does it take to build: 325 days (?)

SKNMUSE, a premium beauty brand dedicated to elevating the beauty experience for Black Women, has a 40% customer retention rate, achieved a 169% increase in revenue, and made $30,000 in Q1 alone.

35. Start a youtube channel

For anyone looking to start a successful YouTube channel, there are plenty of YouTube channel success stories that can be used as inspiration and encouragement. In addition, YouTube has an established monetization system and boasts incredible popularity, making it a potential platform for revenue generation.

In this article, we'll look at different approaches you can use to help promote your channel and grow your viewers. While there's no quick and easy way to success, you can take these tips to build your own YouTube Channel Success story. If you love content creation, you can capitalize on YouTube's popularity to earn extra income.

If you want to join the Youtube partner program to monetize your channel, you will need to reach a minimum of 1,000 subscribers and 4,000 watch hours in the previous 12 months.

How much you can make: $800 — $4,500,000/month

How long does it take to build: 48 days (?)

Learn how this entrepreneurial couple made $5-7k a month by helping others find legitimate work from home jobs and creative ways to make money online through their blog and YouTube channel, as well as offering two flagship products designed to help beginner freelancers and new bloggers accelerate growth.

36. Start a dog training business

Professional dog trainers can be an incredibly fulfilling profession, especially for dog lovers.

You can choose to work as an independent dog trainer or work under a company as a part-time trainer.

However, note that dog training takes more commitment for a part-time gig.

To get started, you need some education to understand how dogs behave and train them in new tricks. You will find tons of online resources on dog training.

Alternatively, you can work as an intern with local dog trainers to acquire the skills before setting up your dog training side hustle.

The average hourly rate for dog trainers is just over $50/ hr.

How much you can make: $5,000 — $8,000/month

Fraternityk9 dog training is an example of how Donald's passion for dog training turned into a $5k/month business, by utilizing platforms like Facebook and Instagram, and learning about sales and business to scale the process.

37. Start a grocery store

A grocery store sells a wide variety of food products, fresh or packaged, and other household & personal care items. The grocery store industry is the largest retail channel that makes $682 billion in the United States.

To start a basic grocery store, you can expect to spend a minimum of $50,000. Ideally, the bigger expense would be the rent, equipment, labor cost, cash registers/POS systems, and software. Some of these are recurring monthly fees. However, the location, size of the store, competitors, and local customers will significantly impact the business. A new grocer should sell more items for a lower price to make a more significant profit.

A new grocer can also save costs by buying the items from local distributors. The distributor is the middleman between the manufacturer and the grocery store selling it. Once the store cost and location are decided, the next step is to obtain a seller license. In most states, a grocer's license is required to run a grocery store.

Thus an average grocery store has a profit margin of 3% to 5%. The profit rates depend on the store's location, size, and popularity. On average, a small to medium grocery store can make a profit of up to $300,000 annually if all the profit factors are considered.

Another way to make your business more profitable is to diversify your store and add amenities like a coffee shop or stocking up the front of the store with magazines, batteries, etc., as these items can cross a margin of up to 70%. As a rule of thumb, offering lower prices on higher purchases will ultimately win more customers and increase profitability.

38. Start a tutoring or education business

When students have problems with their schoolwork, they turn to tutors for help.

Being a tutor awakens your entrepreneurial skills. Being your own boss allows you to set your own schedule and be more independent. You'll create lasting relationships with students and their parents. Last but not least: you get paid well!

How much you can make: $1,700 — $500,000/month

How much does it cost to start: $4,000 (?)

Online makeup academy, Vizio Makeup Academy, founded in 2011 by Anastasia Andreani and her partner, has enrolled over 3,300 students and generated $2.4M in revenue this year, by offering professional makeup courses online and creating their own cosmetic line.

39. Start a cannabis business

Have you ever thought of starting your own cannabis business?

The cannabis industry has been continuously growing throughout the years. The legal marijuana sales are projected to reach $22 billion by 2022.

No matter your level of experience, the cannabis industry has a lot to offer. There are inspiring stories of entrepreneurs that made it big in this particular industry.

How much you can make: $2,500 — $3,100,000/month

In this case study, Evan breaks down:

• Validation: Invited 50 people to try an early sample and interviewed them after
• Early traction: Hit $20K/month after just 5 months
• Financials: Big focus on profits, operating on a 63% margins

When a customer wants to meet you in a Safeway parking lot to get their product faster, you know you have something.

40. Start an email marketing business

Email marketing is a popular and effective way for businesses to reach their target audience and promote their products or services.

With the rise of the internet and the increasing use of email as a communication tool, starting an email marketing business can be a lucrative and rewarding venture.

An email marketing business involves creating and sending marketing emails to a list of subscribers. The emails can be newsletters, promotional messages, or other types of content designed to engage and convert the recipient into a customer. The business owner is responsible for building and maintaining the email list, creating the content, and sending the emails using specialized software.

To start an email marketing business, you must have a strong understanding of marketing principles and a good grasp of best practices. This includes creating compelling subject lines, segmenting your email list, and analyzing your campaigns’ results. You will also need to be proficient in email marketing software like Mailchimp or Constant Contact.

To run a successful email marketing business, you must clearly understand your target audience and what they are interested in. This will help you create relevant and engaging content that resonates with your subscribers and encourages them to take action. A solid call to action in your emails is crucial, whether it’s visiting your website, making a purchase, or signing up for a newsletter. Starting an email marketing business requires marketing skills, expertise, and a willingness to learn and improve continuously. The right strategies and tools can be a rewarding and successful way to reach your target audience and grow your business.

How much you can make: $1,500 — $8,333,333/month

Boundless Labs is an email marketing agency for eCommerce brands that has generated over $25 million in email attributable revenue for their clients since launching 18 months ago and currently makes around $90K per month, with plans to reach $100K per month by the end of January 2020 through client referrals, strong relationships, and hard work.

41. Start a social media marketing agency

Whether you want to clear your utility bills, finance your college education or save for a vacation, a social media marketing agency is one of the best ways to earn extra income. The advantage is that you do not need to commit so much time to automate using social media marketing tools. All you need to do is develop a good social media marketing strategy that will enable you to serve customers efficiently. Besides, you need to create an agency portfolio to market your services to target customers.

How much you can make: $10,000 — $2,400,000/month

How much does it cost to start: $6,250 (?)

Time commitment per week: Min. 30 hours/week

How David Tile turned a freelance writing gig into an $80k/month business, discussing lessons learned through managing growing demands and maintaining a remote team operation.

42. Start an online retail store

Starting an online retail store is straightforward. All you need is a computer, a domain, and a web hosting service. Then, determine a niche for your online store, and conduct product research before listing products.

You can start your online store based on a drop shipping business model or list your self-made products in your online store.

How much you can make: $5,000 — $62,500,000/month

How long does it take to build: 51 days (?)

This case study follows the story of a successful online business that has made 7.2 million dollars in sales since 2012, with profits of around 30-45%, and the founders share insights on lessons learned and tools used.

43. Start a restaurant

44. Start a stock video business

Stock video is pre-filmed footage that can be purchased and used in various projects and films. Like stock photos, copyrighted stock videos cannot be used without permission and licensing from the rightful owner.

Businesses and filmmakers use licensed stock footage as they save money and hours, they would need to create original footage. Starting a stock video suitable for use in commercials and entertainment can be a great venture.

How much you can make: $10,000/month

How long does it take to build: 197 days (?)

VideoPlasty, an affordable and easy-to-use platform for buying pre-made stock animation elements and GIF images, has attracted over 600,000 visitors since its launch, with over $100k in revenue in 2020 alone, thanks to free organic traffic from YouTube tutorials and optimized SEO.

45. Start a CAD designing business

A CAD designer is a professional who specializes in Computer-Aided Design. They use CAD software to create designs for clients and projects.

The CAD design industry has been growing at a rapid pace over the last few years. As a result, the need for 3D modeling and rendering services has risen dramatically in recent years, with many industries looking to CAD designers for their expertise and creativity.

A good CAD designer should have a wide range of skills that will allow them to work on projects from start to finish, from initial concept through final production.

How much you can make: $8,000 — $20,000/month

A 3D CAD designer and product inventor who started as a side hustle and averaged $9,000 a month in revenue, shares his insights on the ups and downs of owning a service-based business alongside an eCommerce store, as well as lessons learned in customer acquisition and in generating multiple streams of passive income.

46. Start a business support services

Business support services offer continuous administrative, technical, and operational assistance to companies.

To begin this business, start by identifying core services such as virtual assistance, bookkeeping, web services, and equipment maintenance to provide clients.

Market your services by attending networking events, cold calling local businesses, using social media, and having a website that emphasizes reliability, expertise, and cost-effectiveness.

Focus on understanding every client's operations and needs to customize your services, maintain strong communication, and build long-term relationships.

Stay up-to-date on business practices, technologies, and methods to enable clients to improve efficiency and concentrate on core functions effectively.

How much you can make: $6,800 — $250,000/month

Hutch, founded by Fearless, is a 24-month program that helps minority and women entrepreneurs in government digital services; the program has had 9 graduates, 11 company founders in current two cohorts, and 20 companies within its portfolio.

47. Start a social media management business

Similar to virtual assistants, social media managers offer various services, including but not limited to:

• Developing a marketing strategy based on clients’ goals
• Setting up social media accounts
• Posting on behalf of their clients
• Coming up with strategies for increasing client’s social media following
• Marketing analysis.

To become a social media manager, know the various platforms and understand how they work so you can develop strategies that help clients reach their goals.

The beauty of working as a social media manager is that you can define your work schedule and choose what niches to work on.

How much you can make: $20,000 — $166,667/month

How much does it cost to start: $251 (?)

How long does it take to build: 3 days (?)

A social media manager turned entrepreneur created a program that has brought in almost $100,000 in one year, designed to teach women how to run successful social media businesses in less than 30 days.  

48. Start an online influencer business

An online influencer business is a company or service that gets products or services sold through popular online users. It can be a very lucrative form of marketing.

As technology has advanced, more and more influencer businesses are starting to rise. These are people or companies who become famous for being influential on various topics.

More and more companies are investing in online influencer marketing because this channel is successful for new product exposure or for sharing news about a brand through voice-overs on popular online videos. You can work with these online influencers in different ways including the use of affiliate marketing or product embeds with sponsorship.

How much you can make: $2,000 — $50,000/month

How long does it take to build: 295 days (?)

Afluencer is a two-sided marketplace that connects brands with influencers and helps influencers, creators, and ambassadors find paid gigs, with 6,500+ active influencer users and 1,000+ brand users yielding 100% YoY revenue growth.

49. Start a babysitting service

If you have some spare time at home, you can start babysitting services for couples who need extra support.

Here are the steps on how to start a babysitting business.

• Avail for training/credentials related to babysitting
• Register your business
• Apply for Licenses/Permits
• Open a bank account for business transactions

50. Start an online video editing business

Video editors manage camera footage, dialogue, sound effects, graphics, and special effects to produce the final film or video product. To become an online video editor, you must have media production and communication knowledge and the ability to work with others.

To start a video editing business, you can outsource video editing skills from an experienced professional. Your role will be to pick video footage from the customers and upload them for the video editor to do the magic.

How much you can make: $2,000 — $208,000/month

How long does it take to build: 145 days (?)

VEED.IO, a London-based start-up co-founded by Sabba and her partner, offers a simple online video editing platform using batch job cloud architecture to help social media managers across the world auto subtitle, filter, rotate videos and much more, earning the company $5,300 MRR and the founders Ramen profitability within just a year of starting.

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Best New business Ideas in Sri Lanka for 2023: How To Start & What You Must Know?

Thousands of people are looking for new business ideas in Sri Lanka and it’s time to know the best!

I have been an entrepreneur for over decade and build two successful companies in the UK and 3 rd if is on it’s lane to greatness.

I have smart people working from Sri Lanka, India, Germany, United Kingdom and it’s growing every day.

With my years of experience in the business, I have found  out some easy steps for anyone who is looking or new business ideas to get started their business.

Here’s a guide on how to start a business in Sri Lanka, including the registration process, costs, websites to visit, and top 10 business ideas that can be started from home.

Top 10 New Business Ideas:

Step 1: Choose a Business Idea The first step in starting a business in Sri Lanka is to decide on a business idea. Consider your interests, skills, and market demand. Research the local market and identify potential business opportunities. Here are the top 10 business ideas that can be started from home in Sri Lanka:

• Online Store: Sell products or services online through an e-commerce website or social media platforms.
• Food Delivery: Start a home-based food delivery service, catering to local customers.
• Freelancing: Offer freelance services such as graphic design, content writing, web development, or digital marketing.
• Handicrafts: Create and sell Sri Lankan handicrafts, such as batik, handloom textiles, or wood carvings.
• Home Gardening: Start a home gardening business, selling plants, seeds, or gardening services.
• Tutoring: Offer tutoring services for subjects such as English, mathematics, or science.
• Event Planning: Start an event planning business, organizing events such as weddings, birthdays, or corporate functions.
• Personal Fitness: Offer personal fitness training or yoga classes from your home.
• Beauty Salon: Set up a home-based beauty salon, offering services such as haircuts, facials, or manicures.
• Pet Care: Provide pet grooming, pet sitting, or dog walking services from your home.

Step 2: Register Your Business Once you have chosen a business idea, the next step is to register your business. In Sri Lanka, businesses can be registered under several legal structures, including sole proprietorship, partnership, or private limited company. Here’s an overview of the registration process:

• Business Name Registration: Choose a unique name for your business and register it with the Department of Registrar of Companies (DRC). You can search for available business names on the DRC website ( www.drc.gov.lk ) and submit the registration application along with the required documents.
• Obtain Business Licenses: Depending on the type of business, you may need to obtain additional licenses or permits from relevant government authorities. For example, if you are selling food, you may need to obtain a food safety license from the Ministry of Health.
• Register for Taxes: Register your business for value-added tax (VAT) and other applicable taxes with the Department of Inland Revenue (IRD) or the Sri Lanka Customs, if applicable.
• Social Security Registration: Register your employees for social security contributions with the Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF) if you plan to hire employees.
• Business Bank Account: Open a business bank account with a local bank to separate your personal and business finances.

Step 3: Understand Legal and Financial Obligations As a business owner in Sri Lanka, it’s important to understand your legal and financial obligations. This includes complying with local laws and regulations, filing regular tax returns, keeping proper financial records, and fulfilling any other legal requirements related to your business.

Step 4: Costs Involved The costs of starting a business in Sri Lanka can vary depending on the legal structure, business type, and other factors. Here are some potential costs to consider:

• Business Name Registration Fee: LKR 3,000 – 10,000 (approx.)
• License/Permit Fees: Varies depending on the type of business.
• Professional Fees: Legal and accounting fees, if applicable.
• Taxes: VAT and other applicable taxes, based on your business turnover.
• Social Security  

What are the best easy online businesses anyone in Sri Lanka can start without money?

Starting an online business with little to no money is possible in Sri Lanka. Here are some business ideas that require minimal investment:

• Dropshipping: Start an online store without the need to invest in inventory. With dropshipping, you can sell products from suppliers who handle the inventory and shipping on your behalf. You only pay for the products once you receive an order.
• Affiliate Marketing: Promote products or services of other companies on your website or social media, and earn a commission for every sale or referral made through your unique affiliate link.
• Content Creation: Start a blog, YouTube channel, or social media page focused on a specific niche or topic, and monetize it through sponsored content, advertising, or donations.
• Online Consulting or Coaching: Offer your expertise in a specific field, such as business, finance, fitness, or personal development, and provide consulting or coaching services online for a fee.
• Online Marketplace: Create a platform or marketplace for a specific niche, such as local handicrafts, organic products, or unique services, and charge sellers a fee or commission for using your platform.
• Online Freelancing: Offer your skills and services, such as graphic design, content writing, web development, or social media management, on freelancing platforms such as Fiverr, Upwork, or Freelancer, and earn money from clients.
• Virtual Assistance: Offer administrative, secretarial, or other virtual assistance services to businesses or entrepreneurs online.
• Online Language Teaching: If you are proficient in a foreign language, offer online language teaching services to students or professionals.
• Online Reselling: Sell products or services from established online marketplaces such as Amazon, eBay, or Etsy, and earn a commission or profit from the price difference.
• Social Media Management: Offer social media management services to businesses or individuals, helping them manage their social media accounts, create content, and grow their online presence.

Please note that while these businesses may not require a significant investment upfront, they still require time, effort, and dedication to succeed.

It’s important to thoroughly research and plan your business, develop a solid marketing strategy, and provide excellent customer service to maximize your chances of success. Additionally, make sure to comply with all relevant laws and regulations in Sri Lanka, such as obtaining any required licenses or permits.

5 books to read on starting a home business

• “The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses” by Eric Ries: This bestselling book provides valuable insights on how to start a business with limited resources, focusing on the principles of lean methodology, iterative product development, and customer validation. It offers practical strategies for building a successful business from scratch, with a focus on agility, experimentation, and customer-centricity.
• “ The $100 Startup: Reinvent the Way You Make a Living, Do What You Love, and Create a New Future” by Chris Guillebeau: This book showcases inspiring case studies of entrepreneurs who have started successful businesses with minimal investment, including many home-based businesses. It offers practical advice on how to identify business ideas, create a plan, and launch a profitable venture on a tight budget.
• “The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It” by Michael E. Gerber: This classic book challenges common myths about entrepreneurship and provides insights on how to build a successful home-based business by focusing on systems, processes, and scalability. It emphasizes the importance of working on your business rather than just in your business, and offers practical strategies for creating a business that can thrive without constant hands-on management.
• “Crushing It!: How Great Entrepreneurs Build Their Business and Influence-and How You Can, Too” by Gary Vaynerchuk: This book highlights the power of personal branding and social media in building a successful home-based business. It shares inspiring stories of entrepreneurs who have leveraged their passion, skills, and online platforms to create thriving businesses, and offers practical advice on how to build a brand, create content, and engage with customers to grow your business online.
• “The Art of Profitability” by Adrian Slywotzky: This book focuses on the fundamentals of business profitability and provides insights on how to build a profitable home-based business. It covers various business models, pricing strategies, and value creation techniques, and offers practical frameworks and case studies to help entrepreneurs understand how to create and capture value in their businesses.

These books provide valuable insights, strategies, and inspiration for starting and growing a home-based business. Remember to adapt the concepts to your specific business idea and market, and always seek professional advice when needed.

Should you register a domain name for the business and build a website, when starting a new business?

Registering a domain name and building a website can be important steps when starting a new business, especially if you plan to have an online presence. Here are the steps to register a domain name and build a website:

• Choose a domain name: A domain name is the unique web address that represents your business online (e.g., www.yourbusinessname.com ). Choose a domain name that is relevant to your business, easy to remember, and reflects your brand identity.
• Check domain name availability : Once you have chosen a domain name, check if it is available using a domain name registrar, such as GoDaddy, Namecheap, or Google Domains. If your desired domain name is not available, you may need to choose an alternative or modify your chosen name slightly.
• Register the domain name: If your chosen domain name is available, you can register it by following the registration process provided by the domain name registrar. This usually involves providing your contact information, choosing a registration period (typically 1-10 years), and paying a registration fee.
• Choose a website builder or web hosting service: Next, you’ll need to choose a website builder or web hosting service to create your website. There are many options available, such as Wix, Squarespace, WordPress, and Shopify, which offer various templates, features, and pricing plans to suit your needs. Choose WordPress and that’s the best platform to create a website.
• Design and build your website: Once you have chosen a website builder or web hosting service, you can start designing and building your website. Most website builders provide intuitive drag-and-drop interfaces that allow you to customize your website’s layout, design, and content without needing coding skills. You can add pages, images, text, and other elements to create a professional-looking website that represents your business.
• Add essential website content: Make sure to include essential content on your website, such as your business name, logo, contact information, products or services, and any other relevant information that visitors may need. This will help potential customers understand what your business offers and how to contact you.
• Optimize your website for search engines: Consider optimizing your website for search engines by using relevant keywords in your website content, optimizing meta tags, and submitting your sitemap to search engines. This can help improve your website’s visibility in search engine results and drive more organic traffic to your website.
• Test and launch your website: Before launching your website, thoroughly test it for functionality, compatibility, and responsiveness across different devices and browsers. Make sure all links and forms are working correctly, and the website loads quickly. Once you are satisfied with your website, you can officially launch it by publishing it to your chosen domain name.
• Regularly update and maintain your website: After launching your website, it’s important to regularly update and maintain it to keep it secure, functional, and relevant. This may involve updating content, fixing broken links, backing up your website, and installing security updates.

Registering a domain name and building a website can help establish your online presence, increase brand visibility, and attract potential customers to your business. However, it’s important to carefully plan and consider your website’s design, content, and functionality to create a professional and effective online representation of your business.

What are the 7 best tips on why anyone should consider starting a home business?

Starting a home business can be a rewarding venture with several benefits. Here are seven tips on why anyone should consider starting a home business:

• Flexibility: One of the biggest advantages of starting a home business is the flexibility it offers. You can set your own working hours, which allows you to have a better work-life balance and tailor your business around your personal commitments.
• Cost-effective: Home-based businesses often require lower startup costs compared to traditional brick-and-mortar businesses. You can save on expenses such as rent, utilities, and commuting costs, making it a cost-effective option for starting a business on a budget.
• Increased control: When you start a home business, you have greater control over your business operations and decision-making. You can make decisions related to products, pricing, marketing strategies, and more, without having to seek approval from others.
• Income potential: Running a successful home business can provide a source of income and financial stability. You have the potential to earn profits from your business and have control over your income, depending on the success of your business efforts.
• Work-life integration: With a home-based business, you can seamlessly integrate your work into your daily life. You have the flexibility to take breaks, spend time with family, and manage personal tasks, which can result in better work-life integration and overall well-being.
• Increased job security: Starting a home business can provide you with increased job security as you are not reliant on a single employer. You have the ability to diversify your income streams and be less dependent on a single source of income.
• Personal growth: Running a home business can be a great opportunity for personal growth and development. It allows you to learn new skills, gain experience in various aspects of business management, and challenge yourself to grow both personally and professionally.

Starting a home business can offer flexibility, cost-effectiveness, increased control, income potential, work-life integration, increased job security, and opportunities for personal growth. However, it’s important to carefully plan, research, and execute your home business idea to increase the likelihood of success.

To learn about digital business and to learn the skills, visit SeekaHost University . You can take the most important courses for free and build a thriving new business in Sri Lanka.

Also read my guide on how to earn money online in Sri Lanka which will give you the tips on 7 ways to make money.

What do you think?

Written by Fernando Raymond

Founder & CEO - ClickDo Ltd. & SeekaHost Ltd. Writes about business, startups and how to get online with domain names and web hosting. Creating the world's best hosting platform with seekahost.app

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Top 20 Best Business Ideas in Sri Lanka for Entrepreneurs

In the heart of the Indian Ocean, Sri Lanka is a country blessed with a rich cultural heritage, natural beauty, and a diverse economy. As the country undergoes rapid digital transformation and globalization, there is a growing demand for innovative and sustainable business solutions. Entrepreneurs and aspiring business owners have the unique opportunity to tap into this burgeoning market, addressing the specific needs of Sri Lankan consumers and contributing to the country’s economic growth. 

Whether it’s digital payment solutions, language translation services, or sustainable tourism ventures, there are ample business opportunities to explore in Sri Lanka. In this article, we will discuss some of the best and unique business ideas suitable for the Sri Lankan market.

Table of Contents

List of 20 Business Ideas to Start in Sri Lanka

1. mobile repair service.

The mobile phone market in Sri Lanka has been steadily growing with a penetration rate of over 80% . With the widespread use of smartphones, there is a constant demand for repair services.

As the number of smartphone users continues to rise, so does the need for repair services. Offering a mobile repair service in Sri Lanka is an excellent way to capitalize on this growing market.

How you can start:

• Acquire skills: Enroll in a mobile repair training course to learn about the intricacies of smartphone repairs.
• Invest in tools: Purchase the necessary tools and equipment for smartphone repairs.
• Choose a niche: Decide whether you want to focus on repairing specific brands or offer a general repair service.
• Set up your business: Register your business, get any necessary permits or licenses, and set up a workspace.
• Offer doorstep service: Differentiate yourself by offering doorstep repair services for added convenience.
• Advertise: Use social media, local directories, and word of mouth to promote your services.
• Provide quality service: Focus on delivering quality repairs and excellent customer service to build a loyal customer base.

2. Spice Packaging and Selling:

Sri Lanka is renowned worldwide for its spices, with a history of spice trade dating back centuries. The country is a major producer of spices like cinnamon, cardamom, and black pepper.

Spice packaging and selling can tap into both local and international markets, making it one of the best businesses to start in Sri Lanka . It can help preserve the rich heritage of spice production and provide economic benefits to local spice growers.

• Identify suppliers: Build relationships with local spice growers to source high-quality spices at competitive prices.
• Choose your niche: Decide whether you want to focus on specific spices or offer a range of spices.
• Packaging: Invest in attractive, eco-friendly packaging that preserves the freshness and quality of the spices.
• Branding: Create a unique brand identity for your spice business, including a memorable logo and packaging design.
• Quality control: Implement strict quality control measures to ensure the consistency and quality of your products.
• Market research: Identify your target market, both locally and internationally, and understand their preferences.
• Promotion: Use digital marketing, social media, and partnerships with local stores to promote your products.
• Export: Explore opportunities to export your spices to international markets.

3. Tuk-tuk Rental Service:

Tuk-tuks are an iconic mode of transportation in Sri Lanka, used by both locals and tourists. The country welcomes millions of tourists each year, creating a high demand for convenient transportation options.

Starting a tuk-tuk rental service for tourists can be a profitable venture, as it caters to the increasing number of tourists visiting Sri Lanka. Tuk-tuks offer a unique and flexible way for tourists to explore the country.

• Market research: Understand the needs and preferences of tourists, such as preferred rental durations, routes, and pricing.
• Invest in tuk-tuks: Purchase or lease a fleet of well-maintained tuk-tuks.
• Legal requirements: Register your business, obtain the necessary permits and insurance, and ensure compliance with local regulations.
• Set up a booking system: Create an easy-to-use online booking system, or partner with local hotels and tour operators to offer your services.
• Pricing: Develop a competitive pricing strategy based on market research and customer preferences.
• Maintenance: Regularly service and maintain your tuk-tuks to ensure their safety and reliability.
• Marketing: Promote your rental service through digital marketing, partnerships with local businesses, and customer testimonials.
• Customer service: Provide excellent customer service, including clear communication, flexible rental options, and support during the rental period.

4. Sustainable Eco-tourism Ventures:

Sri Lanka is a biodiverse island with lush rainforests, pristine beaches, and stunning wildlife. According to the World Tourism Organization, Sri Lanka is one of the top 40 biodiversity hotspots in the world.

Eco-tourism is a growing trend among travelers who seek unique experiences while minimizing their environmental impact. By setting up sustainable eco-tourism ventures, you can contribute to the preservation of Sri Lanka’s natural beauty while catering to this demand.

• Identify a location: Choose an ecologically rich area in Sri Lanka to base your venture, considering factors like accessibility, tourist interest, and environmental sensitivity.
• Market research: Understand your target audience’s preferences, such as preferred activities, accommodations, and experiences.
• Create a sustainable plan: Develop a plan that prioritizes sustainable practices, like reducing waste, conserving energy, and supporting local communities.
• Design unique experiences: Offer activities like guided nature walks, wildlife safaris, or traditional cooking classes that highlight Sri Lanka’s natural and cultural heritage.
• Obtain necessary permits: Ensure compliance with local regulations by obtaining the necessary permits and licenses for your eco-tourism venture.
• Partner with local communities: Collaborate with local communities to provide authentic experiences and support their economic development.
• Marketing: Use digital marketing, partnerships with travel agencies, and eco-certifications to promote your venture and attract eco-conscious travelers.
• Customer service: Provide excellent customer service, including clear communication, tailored experiences, and education on sustainable practices.

5. Online Tutoring Services:

Online education has seen rapid growth in recent years, with a projected market value of $350 billion by 2025 . Online tutoring services offer a flexible and convenient way for students to learn from anywhere.

The increasing demand for quality education, coupled with the convenience of online learning, makes online tutoring one of the best business ideas in Sri Lanka. It allows you to reach a wide audience and share your expertise without geographical limitations.

• Identify your niche: Decide on the subjects and age groups you want to target, considering your expertise and market demand.
• Develop your curriculum: Create engaging and comprehensive lesson plans tailored to your target audience’s needs.
• Acquire necessary equipment: Invest in a reliable computer, high-speed internet connection, and any necessary software or tools for online teaching.
• Build an online presence: Set up a professional website and social media profiles to showcase your qualifications, teaching style, and success stories.
• Pricing: Develop a competitive pricing strategy based on market research and your unique value proposition.
• Marketing: Promote your services through digital marketing, partnerships with schools, and word of mouth.
• Deliver quality lessons: Focus on providing interactive and effective online lessons that cater to your students’ individual needs and learning styles.
• Collect feedback: Continuously seek feedback from your students to improve your teaching methods and adapt to their needs.

6. E-commerce Store for Handicrafts:

Sri Lanka’s rich cultural heritage is reflected in its vibrant handicraft industry, which has been passed down through generations. Handicrafts like batik, wood carving, and pottery are highly valued both locally and internationally.

Setting up an e-commerce store for handicrafts allows you to support local artisans and preserve Sri Lanka’s cultural heritage while capitalizing on the increasing demand for unique, handcrafted products.

• Identify suppliers: Build relationships with local artisans to source unique and high-quality handicrafts.
• Choose a niche: Decide whether you want to focus on specific types of handicrafts or offer a diverse range of products.
• Set up an e-commerce platform: Choose an e-commerce platform that suits your needs and design an attractive, user-friendly online store.
• Product photography and descriptions: Take high-quality photographs of your products and write detailed descriptions highlighting their unique features and cultural significance.
• Pricing: Develop a competitive pricing strategy that considers the value of the craftsmanship, market demand, and your target audience’s budget.
• Shipping and returns: Set up a reliable shipping process and clear return policies to provide a seamless shopping experience for your customers.
• Marketing: Promote your e-commerce store through digital marketing, partnerships with local events, and showcasing the stories behind the handicrafts.
• Customer service: Provide excellent customer service, including prompt responses to inquiries, personalized recommendations, and after-sales support.

7. Customized Travel Planning Services:

Sri Lanka, with its diverse landscape, rich history, and unique culture, attracts millions of tourists annually. According to the Sri Lanka Tourism Development Authority, the country welcomed over 7 lakh tourists in 2022 .

Personalized travel experiences have become increasingly popular among travelers. Customized travel planning services cater to this demand by creating tailor-made itineraries that showcase Sri Lanka’s attractions and culture, making it one of the best business ideas in Sri Lanka.

• Market research: Understand the preferences and needs of your target audience, such as budget, activities, and duration of stay.
• Develop travel packages: Create customized travel packages based on your market research, including accommodations, transportation, and activities.
• Build partnerships: Collaborate with local hotels, transportation providers, and tour guides to offer unique experiences and competitive prices.
• Legal requirements: Register your business and obtain any necessary licenses or permits to operate a travel planning service.
• Create an online presence: Set up a professional website and social media profiles showcasing your services, customer testimonials, and travel packages.
• Marketing: Promote your services through digital marketing, partnerships with travel influencers, and participation in travel-related events.
• Personalization: Focus on creating personalized itineraries that cater to your customers’ specific interests and preferences.
• Customer service: Provide excellent customer service, including prompt communication, flexibility in travel planning, and support during the trip.

8. Agriculture Technology Solutions:

Agriculture plays a significant role in Sri Lanka’s economy, with over 27% of the population employed in the sector. However, small-scale farmers often face challenges like low productivity and outdated farming practices.

Offering tech solutions to small-scale farmers can help them increase their yield, improve their farming practices, and ultimately enhance their livelihoods.

• Identify pain points: Understand the challenges faced by small-scale farmers, such as irrigation, pest control, and soil health.
• Develop tech solutions: Create innovative technology solutions that address these pain points, like IoT-based monitoring systems, automated irrigation systems, or mobile apps for pest management.
• Market research: Understand your target market, including their willingness to adopt new technologies, budget constraints, and specific needs.
• Collaborate with experts: Partner with agricultural experts and technologists to develop reliable, user-friendly solutions.
• Pilot testing: Test your solutions with a small group of farmers to gather feedback and make any necessary improvements.
• Education: Conduct workshops and training sessions to educate farmers on the benefits of your tech solutions and how to use them effectively.
• Marketing: Promote your solutions through digital marketing, partnerships with local agricultural organizations, and participation in agricultural fairs.
• Customer support: Provide responsive customer support, including technical assistance and regular updates to your tech solutions.

9. Online Market for Local Artisans:

Sri Lanka’s artisans create a wide range of unique products, including handicrafts, textiles, and jewelry. However, many local artisans struggle to reach a broader audience due to limited access to markets.

Creating an online marketplace for local artisans allows them to showcase and sell their products to a wider audience, supporting their craft and helping preserve Sri Lanka’s cultural heritage.

• Identify artisans: Build relationships with local artisans and understand their needs and challenges.
• Create an online marketplace: Set up an easy-to-use online marketplace that allows artisans to list their products, manage their inventory, and receive payments.
• Product photography and descriptions: Assist artisans in taking high-quality photographs of their products and writing detailed descriptions.
• Quality control: Implement quality control measures to ensure the authenticity and quality of the products listed on your marketplace.
• Marketing: Promote your online marketplace through digital marketing, partnerships with local events, and showcasing the stories behind the artisans and their crafts.
• Education: Provide training to artisans on pricing, packaging, and other aspects of online selling.
• Customer service: Provide excellent customer service, including prompt responses to inquiries, assistance with the buying process, and after-sales support.

10. Coconut Products Manufacturing and Export:

Sri Lanka is the world’s fourth-largest producer of coconuts, producing over 2.7 million metric tons of coconuts annually. The country’s tropical climate and abundant coconut plantations make it a prime location for coconut-based products.

The global demand for coconut-based products, such as coconut oil, coconut milk, and coconut water, is on the rise due to their health benefits and versatile applications. By manufacturing and exporting coconut products, you can tap into this lucrative market.

• Identify your niche: Decide which coconut-based products you want to focus on, considering market demand, competition, and your expertise.
• Secure coconut supply: Build relationships with local coconut farmers to ensure a reliable supply of high-quality coconuts.
• Set up a manufacturing facility: Invest in the necessary equipment and facilities for processing and packaging your chosen coconut products.
• Obtain certifications: Acquire relevant certifications, like organic or fair trade, to enhance the appeal of your products to international customers.
• Compliance: Ensure compliance with local and international regulations for food safety and quality standards.
• Marketing: Develop a marketing strategy that highlights the unique features and benefits of your coconut products, targeting both local and international markets.
• Export logistics: Establish partnerships with freight forwarders and shipping companies to handle the export logistics of your products.
• Customer support: Provide responsive customer support, including addressing inquiries, managing orders, and handling any issues that arise.

11. Health and Fitness Coaching Services:

The health and fitness industry is experiencing steady growth worldwide, with a projected market volume of over $6 billion by 2027 . The increasing interest in healthy living and fitness among the middle class in Sri Lanka makes health and fitness coaching services a viable business opportunity.

By providing health and fitness coaching services, you can cater to the growing demand for personalized guidance on healthy living and exercise, helping people achieve their wellness goals.

• Identify your niche: Decide whether you want to focus on specific areas like nutrition, exercise, or overall wellness, considering your expertise and market demand.
• Get certified: Acquire relevant certifications in health and fitness to enhance your credibility and skills.
• Develop a program: Create customized coaching programs tailored to your clients’ needs, goals, and preferences.
• Online presence: Set up a professional website and social media profiles to showcase your qualifications, services, and client testimonials.
• Marketing: Promote your services through digital marketing, partnerships with local gyms or health centers, and word of mouth.
• Deliver coaching: Provide personalized coaching to your clients, focusing on their individual needs and helping them achieve their health and fitness goals.
• Continuous learning: Stay updated on the latest trends and research in health and fitness to provide the best possible coaching to your clients.
• Customer support: Offer responsive customer support, including answering questions, providing resources, and adjusting coaching programs as needed.

12. Freelance Services:

The gig economy is on the rise globally, with over 36% of the US workforce engaged in freelance work. Offering freelance services in areas like writing, graphic design, and web development allows you to work flexibly and cater to both local and international clients.

Freelancing provides the flexibility to work on projects that align with your skills and interests, while also offering the opportunity to earn a good income from both local and international clients.

• Identify your niche: Decide on the specific freelance services you want to offer, considering your skills, expertise, and market demand.
• Create a portfolio: Build a portfolio showcasing your best work, relevant skills, and client testimonials.
• S et up an online presence: Establish a professional website and social media profiles to display your portfolio and attract potential clients.
• Marketing: Promote your freelance services through digital marketing, networking, and participation in industry events.
• Freelance platforms: Register on freelance platforms like Upwork, Fiverr, or Freelancer to connect with potential clients and bid on projects.
• Deliver quality work: Focus on delivering high-quality work that meets or exceeds your clients’ expectations, ensuring repeat business and referrals.
• Customer support: Provide excellent customer service, including prompt communication, flexibility in project revisions, and timely delivery.

13. Tea Boutique or Café:

Sri Lanka, formerly known as Ceylon, is renowned for its world-class tea production, and it is the fourth-largest tea producer globally. The country’s rich tea heritage and the popularity of tea among both locals and tourists make a tea boutique or café an attractive business opportunity.

Establishing a tea boutique or café showcasing the diverse tea varieties of Sri Lanka can cater to the growing demand for unique and immersive tea experiences. You can offer a distinct tea-tasting experience, providing education on tea varieties, preparation techniques, and cultural significance.

• Market research: Understand your target audience’s preferences and needs, including the types of tea, ambiance, and additional offerings they prefer.
• Find a location: Select a suitable location for your tea boutique or café, considering factors like foot traffic, accessibility, and competition.
• Design and ambiance: Create a unique and inviting interior design that reflects the rich tea culture of Sri Lanka.
• Tea selection: Partner with local tea estates and producers to source a diverse range of high-quality teas.
• Tea education: Develop educational materials and interactive tea-tasting sessions to enhance your customers’ tea experience.
• Menu development: Create a complementary food menu that pairs well with the different tea varieties you offer.
• Marketing: Promote your tea boutique or café through digital marketing, partnerships with local businesses, and hosting tea-related events.
• Customer service: Provide exceptional customer service, including knowledgeable staff, personalized recommendations, and a welcoming atmosphere.

14. Recycling and Waste Management Services:

Waste management is a growing concern in Sri Lanka, with an estimated 7,000 metric tons of waste generated daily. The increasing demand for sustainable waste management solutions presents a business opportunity in recycling and waste management services.

Starting a recycling and waste management service can help local communities address their waste issues more sustainably while also contributing to a cleaner and healthier environment.

• Identify a niche: Choose a specific area of waste management, such as plastic recycling, electronic waste, or organic waste.
• Market research: Understand the waste management needs and challenges faced by local communities and businesses.
• Secure partnerships: Collaborate with local government, businesses, and community organizations to implement sustainable waste management practices.
• Infrastructure and equipment: Invest in the necessary infrastructure and equipment for collecting, sorting, and processing waste.
• Educational initiatives: Conduct awareness campaigns and workshops to educate the community about the importance of recycling and sustainable waste management.
• Compliance: Ensure compliance with local regulations regarding waste management and environmental protection.
• Marketing: Promote your recycling and waste management services through digital marketing, community engagement, and partnerships with eco-friendly organizations.
• Customer support: Provide responsive customer support, including addressing inquiries, implementing customized waste management solutions, and monitoring service effectiveness.

15. Urban Farming Initiatives:

Urban farming is gaining popularity worldwide as a sustainable solution to food production in densely populated cities. In Sri Lanka, where urban areas are experiencing rapid growth, urban farming initiatives can help city dwellers grow their own food and promote sustainable living.

Launching urban farming initiatives can cater to the increasing interest in sustainable living, self-sufficiency, and healthy eating among city dwellers. It can also help reduce the environmental impact of conventional agriculture.

• Market research: Understand the needs and preferences of urban residents regarding sustainable food production, gardening practices, and community involvement.
• Education: Develop educational materials and workshops on urban farming techniques, such as container gardening, vertical farming, and hydroponics.
• Urban farming spaces: Identify suitable spaces for urban farming initiatives, such as rooftops, balconies, or community gardens.
• Partnerships: Collaborate with local businesses, community organizations, and government agencies to support and promote urban farming initiatives.
• Resources: Provide resources like seeds, plants, gardening tools, and soil to help urban residents start their urban farming projects.
• Community engagement: Create a sense of community by hosting urban farming events, sharing successes, and encouraging peer-to-peer learning.
• Marketing: Promote your urban farming initiatives through digital marketing, community events, and partnerships with sustainable living organizations.
• Customer support: Provide ongoing support to urban farmers, including answering questions, offering guidance, and connecting them with resources.

16. Solar Power Solutions:

Sri Lanka, being a tropical country, receives abundant sunlight throughout the year. As the country looks towards sustainable and renewable energy solutions, solar power emerges as a significant opportunity for both households and businesses.

By providing solar power solutions, you can help households and businesses reduce their electricity costs, promote renewable energy, and contribute to a more sustainable and greener future.

• Market Research: Understand the needs and preferences of households and businesses regarding solar power solutions, considering factors such as cost, installation, and maintenance.
• Certifications and Licensing: Acquire relevant certifications and licenses for solar installation and maintenance, which would enhance your credibility.
• Supplier Partnerships: Establish partnerships with reputable solar panel and equipment suppliers to provide high-quality solutions to your customers.
• Installation and Maintenance: Develop a skilled team capable of installing and maintaining solar power systems efficiently and safely.
• Educational Campaigns: Conduct educational campaigns to increase awareness about the benefits of solar power and address common misconceptions.
• Marketing: Promote your solar power solutions through digital marketing, community engagement, and partnerships with eco-friendly organizations.
• Customer Support: Provide responsive customer support, addressing inquiries, assisting with installation and maintenance, and offering guidance on maximizing solar power benefits.
• Customized Solutions: Tailor your solar power solutions to the specific needs of your customers, considering factors such as location, energy consumption, and budget.

17. Home-based Catering or Meal-Kit Delivery Services:

The demand for convenient and healthy food options is growing in Sri Lanka, especially among busy professionals and families. Home-based catering or meal-kit delivery services can cater to this demand, offering freshly prepared meals or meal kits for easy home cooking.

By providing home-based catering or meal-kit delivery services, you can tap into the growing market for convenient and healthy food options while operating a business from the comfort of your own home.

• Market Research: Understand the preferences and dietary needs of your target audience, including their preferred cuisine, portion sizes, and dietary restrictions.
• Menu Development: Create a diverse and appealing menu, considering factors such as taste, nutrition, and ease of preparation for meal kits.
• Ingredient Sourcing: Source high-quality ingredients from local producers or suppliers to ensure the freshness and quality of your meals or meal kits.
• Hygiene and Safety: Maintain high standards of hygiene and safety in food preparation, storage, and packaging.
• Marketing: Promote your home-based catering or meal-kit delivery services through digital marketing, word of mouth, and partnerships with local businesses.
• Customer Support: Provide responsive customer support, addressing inquiries, managing orders, and addressing any issues that arise.
• Customization: Offer customization options for meals or meal kits, accommodating dietary restrictions and specific preferences.
• Delivery Logistics: Establish a reliable and efficient delivery system to ensure timely and safe delivery of meals or meal kits.

18. Event Planning and Management:

Events like weddings, corporate gatherings, and celebrations are an integral part of Sri Lanka’s vibrant culture. As the demand for professional event planning and management services grows, this sector presents a lucrative business opportunity.

Starting an event planning and management business allows you to tap into the growing market for professionally organized events while showcasing your creativity and organizational skills.

• Market Research: Understand the needs and preferences of your target audience, including event themes, venues, and budget considerations.
• Certifications: Acquire relevant certifications in event planning and management to enhance your credibility and expertise.
• Vendor Partnerships: Establish partnerships with reputable vendors, including venues, caterers, decorators, and entertainers, to offer comprehensive event solutions.
• Marketing: Promote your event planning and management services through digital marketing, networking, and participation in industry events.
• Customer Support: Provide responsive customer support, addressing inquiries, providing event consultation, and managing client expectations.
• Event Execution: Develop a skilled team capable of executing events flawlessly, focusing on attention to detail, time management, and problem-solving.
• Feedback and Improvement: Collect feedback from clients and vendors, continuously improving your services to enhance client satisfaction and business reputation.
• Customization: Tailor your event planning and management services to the specific needs and preferences of your clients, ensuring unique and memorable events.

19. Digital Payment Solutions:

As the world continues to shift towards a more digital and cashless economy, small businesses in Sri Lanka are in need of efficient digital payment solutions to cater to the changing preferences of consumers.

By offering digital payment solutions, you can help small businesses adapt to the growing demand for cashless transactions, streamline their operations, and enhance customer satisfaction.

• Market Research: Understand the specific needs and preferences of small businesses regarding digital payment solutions, including factors like transaction speed, security, and user-friendliness.
• Technology Development: Develop or partner with technology providers to offer a robust and reliable digital payment platform, ensuring secure and efficient transactions.
• Compliance: Ensure compliance with local regulations regarding digital payments, financial transactions, and data protection.
• Education and Training: Conduct educational campaigns and training sessions for small businesses to help them understand the benefits of digital payments and effectively use your platform.
• Marketing: Promote your digital payment solutions through digital marketing, partnerships with local businesses, and participation in industry events.
• Customer Support: Provide responsive customer support, addressing inquiries, assisting with onboarding and usage, and troubleshooting any issues.
• Integration and Customization: Offer integration with existing business systems and customized payment solutions to meet the specific needs of your clients.
• Monitoring and Improvement: Monitor transaction data and user feedback to continuously improve your digital payment solutions and enhance user experience.

20. Language Translation Services:

Sri Lanka’s diverse cultural and linguistic heritage, along with its strategic location in the Indian Ocean, positions it as an important player in the global market. Language translation services are essential for bridging the gap between Sri Lanka and the rest of the world.

By providing language translation services, you can help businesses and individuals communicate effectively with the global market, enabling trade, tourism, and cultural exchange.

• Market Research: Understand the specific translation needs of your target audience, including preferred languages, document types, and turnaround times.
• Language Proficiency: Ensure that you and your team have a high level of proficiency in the languages you offer, including cultural nuances and technical vocabulary.
• Technology and Tools: Invest in translation software and tools to enhance the efficiency and accuracy of your translation services.
• Certifications: Acquire relevant certifications in translation to enhance your credibility and expertise.
• Marketing: Promote your language translation services through digital marketing, networking, and participation in industry events.
• Customer Support: Provide responsive customer support, addressing inquiries, managing translation projects, and addressing any issues that arise.
• Quality Control: Implement a quality control process to ensure that your translations are accurate, coherent, and meet the specific needs of your clients.
• Diversification: Offer a range of translation services, including document translation, interpretation, and localization, to cater to diverse client needs.

Sri Lanka’s dynamic economy, diverse culture, and strategic location present unique business opportunities for entrepreneurs. The business ideas discussed in this article are just a glimpse of the vast potential that exists in the Sri Lankan market. By understanding the specific needs of the target audience, adhering to local regulations, and offering innovative and sustainable solutions, entrepreneurs can establish successful businesses in Sri Lanka. 

Whether you’re a middle-class family, an early-stage entrepreneur, or a seasoned business owner, there’s no better time than now to seize the opportunities that Sri Lanka has to offer. So, take that leap of faith, explore the business opportunities, and contribute to the country’s vibrant economy.

The Editorial Staff at Business Ideas Deck is committed to helping you find the perfect startup idea. We offer a curated range of promising opportunities, all aimed at guiding you to entrepreneurial success. Explore, choose, and launch your business with us today!

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Top 10 Best Small Business ideas in Sri Lanka [2022]

posted on 04/01/2022

Sri Lanka has shown a lot of character in revamping its struggling economy after an unfortunate civil war in May month of 2009.

While governments have always done their part, residents need to embrace aggressive entrepreneurship so that the country goes further ahead on the path of progression.

Here are the 10 best and profitable business ideas that we think shall inspire Sri Lankan entrepreneurs to start their businesses.

1. Airport shuttle service

More than 1 million international tourists are being received by Sri Lanka annually through airplanes. These tourists require transport to be able to move from airports to their holiday destinations and vice versa. Keeping this need of tourists in mind, interested persons can open a shuttle service business in Sri Lanka.

An airport shuttle service business doesn’t demand you more than a vehicle in good condition, driving skills, and of course, a driving license. This business can be operated on a part-time basis as well.

2. Allergy translation cards

Those who look for work in Sri Lanka’s growing tourism industry but are on a budget may consider an allergy translation card making business. Allergy translation cards tackle away language barriers.

Allergy-sensitive tourists use these cards to convey the restaurant staff to avoid food that causes allergy to them in their native language.

3. Eco-Tourism business

There are many destinations like Sinharaja Rain Forest, Buttala, Knuckles Mountains, etc. that are being passionately explored by tourists for adventure travels.

Suppose you live up near any such place that offers an excellent prospect for such trips. In that case, you could consider starting an ecotourism business to educate visitors about the site, community, and environment and hence get paid.

4. Tea production

Sri Lankan is one of the best agriculture business ideas that enjoys tremendous demand in overseas markets, particularly in Iran, Pakistan, the United States, etc. However, the local tea production capacity hasn’t yet reached its full potential.

Prospective entrepreneurs can export revenue into the country while exploiting the easy availability of ideal geographical and climatic requirements for tea production in Sri Lanka to the fullest.

5. Tobacco production

Even though people, whether those who live in Sri Lanka or anywhere else in the world, know that tobacco kills, they smoke.

Domestic demand for tobacco in Sri Lanka is so spectacular that even thousands of suppliers can’t match it. More tobacco production units are thus required in the country.

Aspiring entrepreneurs benefit from land availability, which supports tobacco production and cheap skilled labor in Sri Lanka.

6. Coconut production

Sri Lanka ranks fifth in the production of coconut commodities in the world. There are many commercial uses of coconut, such as deodorants, toothpaste, body lotion, and many other products.

Coconut cultivation can become a significant catalyst in the Sri Lankan economy’s growth as coconut demand, and its value-added products are high internationally. Unfortunately, due to drought conditions, the local supply is struggling to meet this tremendous international demand.

Sri Lankan government needs to search for ways to avoid the expected effect of drought on coconut cultivation. That would ensure the control of local prices and the avoidance of losses incurred when a ban is imposed on coconut export.

7. Value-added textile products

The textile industry has been the cornerstone of the Sri Lankan economy over the past four decades. However, the involvement of local entrepreneurs in the textile value chain is shallow.

Many value-added textile products such as buttons, zippers, hook and loop fasteners, embroidery works, etc., that hold great promise for advancing the economic status of many people in Sri-Lanka.

8. Vegetable farming

Vegetables are daily consumable items used by both rich and poor in their meals. People would probably never give up the use of vegetables since they are both healthy and budget-friendly. Farmers can grow many different vegetable varieties for profit.

Potatoes, onions, tomatoes, peppers, etc are some good examples of vegetables they can grow while using their lands, watering, farming skills, and manures. Apart from these basic requirements, farmers need marketing strategies that will ensure them good profits while they sell their produce to buyers.

9. Diary farming

Every family consumes milk every day. Milk that we use for making tea, feeding infants, etc comes to us all the way from dairy farmers while they raise cows, buffaloes, and other milk-producing animals.

To open a dairy farm, you’ll be required to keep high milk yielding species of cows ( Holstein is popular), a farm building ( cowshed) to provide housing and get them milked.

The only heavy investment in a dairy farm business goes alone for buying cows while the rest requirements are affordable.

10. Salt production

If you have studied the law of demand in Economics, it tells us that when the price of a commodity hikes up, its demand turns downwards. But the same law of demand doesn’t hold true for certain goods like salt.

Even if the prices of salt touch skies, there won’t be much effect on consumer demand as it is a basic necessity we can’t avoid using in our foods. Therefore, starting a salt production business is another worth business opportunity for entrepreneurs in Sri Lanka.

About Becky Holton

This Guide is brought to you by Becky Holton who is a journalist and a blogger. She teaches and trains budding entrepreneurs on various startup aspects.

• Business Registration
• Tax Consultation
• Online Bookkeeping
• Payroll Management
• Trademark Registration
• Business Knowledge

A Step-by-Step Guide to Generating a Business Idea for Sri Lankan Startups

Introduction:.

In the dynamic world of entrepreneurship, generating a viable business idea is the first crucial step for Sri Lankan startups. A great business idea forms the foundation for success, but it can be challenging to come up with innovative concepts that align with the local market and cater to the needs of customers. In this step-by-step guide, we will walk you through the process of generating a business idea specifically tailored for Sri Lankan startups.

Step 1: Identify Your Passion and Interests

Start by exploring your personal passions and interests. What are you truly enthusiastic about? Consider your hobbies, skills, and areas of expertise. Identifying areas that genuinely excite you will not only fuel your motivation but also increase your chances of building a successful business in the long run.

Step 2: Research Market Needs and Trends

Conduct thorough market research to understand the needs, problems, and emerging trends within the Sri Lankan market. Study consumer behavior, analyze industry reports, and explore online platforms to gain insights into gaps and opportunities. Look for areas where demand is high but supply is limited or where existing solutions can be improved upon.

Step 3: Brainstorm and Generate Ideas

Gather a team or engage in solo brainstorming sessions to generate a wide range of business ideas. Encourage creativity and open-mindedness during this process. Use techniques like mind mapping, idea listing, and concept association to spark new possibilities. Consider diverse industries, sectors, and niches while exploring potential ideas.

Step 4: Evaluate Feasibility and Viability

Once you have a list of potential business ideas, evaluate their feasibility and viability. Assess the market demand, competition, scalability, and financial potential of each idea. Consider factors such as initial investment requirements, resource availability, and potential profitability. Weed out ideas that are not realistic or sustainable in the Sri Lankan context.

Step 5: Validate Your Idea

Validate your business idea by seeking feedback from your target audience. Conduct surveys, interviews, or focus groups to gauge their interest, pain points, and willingness to pay for your product or service. Use their feedback to refine and iterate your idea, ensuring that it resonates with your potential customers.

Step 6: Develop a Unique Value Proposition

Craft a compelling unique value proposition (UVP) for your business idea. Clearly define how your product or service will address customer needs and stand out from competitors. Emphasize the unique benefits and advantages that your startup brings to the market. Your UVP should communicate a clear value proposition and resonate with your target audience.

Step 7: Create a Business Plan

Once you have a solid business idea and a well-defined UVP, it’s time to create a comprehensive business plan. Outline your business model, target market, marketing strategies, operational structure, and financial projections. Include a thorough analysis of the competitive landscape and potential risks. A well-crafted business plan will serve as a roadmap for your startup’s future growth and development.

Step 8: Seek Mentorship and Guidance

Seek mentorship and guidance from experienced entrepreneurs or industry experts who can provide valuable insights and advice. Join startup communities, attend networking events, and connect with like-minded individuals who can offer support and guidance throughout your entrepreneurial journey.

Step 9: Start Building Your Startup

With a validated business idea, a solid plan, and a network of supporters, it’s time to start building your Sri Lankan startup. Take the necessary steps to register your business, set up a legal structure, secure funding if needed, and assemble a skilled team. Stay agile, adapt to market feedback, and continuously iterate your business model as you progress.

Step 10: Business name registration – Protect your brand

Registering your business name typically grants you exclusive rights to use that name within your jurisdiction and industry. This means other businesses cannot use a similar name that could cause confusion among customers.

In summary, business name registration is crucial for legal compliance, branding, protection of your business identity, and establishing trust with customers, partners, and financial institutions. It provides the foundation for your business to operate smoothly and grow successfully. read more how to register your business

Conclusion:

Generating a business idea for Sri Lankan startups requires a systematic approach that combines personal passion, market research, creativity, validation, and planning. By following this step-by-step guide, you can increase your chances of developing a viable and successful business idea. Remember, entrepreneurship is a journey, and the key to success lies in perseverance, adaptability, and relentless pursuit of innovation.

Certainly! Here are some example business ideas that are relevant to the Sri Lankan market:

• Eco-Friendly Packaging Solutions: With increasing environmental concerns, there is a growing demand for sustainable packaging materials and solutions. You can explore the production and distribution of eco-friendly packaging options made from biodegradable or recyclable materials.
• Agri-Tech Solutions: Sri Lanka’s agriculture sector offers opportunities for technological advancements. Consider developing innovative agri-tech solutions such as smart farming tools, crop monitoring systems, or online marketplaces connecting farmers directly with consumers.
• Health and Wellness Services: Sri Lankans are increasingly focused on personal health and well-being. You can establish a health and wellness center offering services such as yoga, meditation, fitness classes, nutritional counseling, or alternative therapies.
• Online Tutoring Platform: With the rise of e-learning, creating an online tutoring platform that connects students with qualified tutors can be a lucrative business idea. Offer specialized subject tutoring or language learning courses to cater to specific educational needs.
• Sustainable Fashion Brand: Sri Lanka has a rich textile industry. Consider starting a sustainable fashion brand that produces clothing and accessories using organic, ethically sourced materials and promotes fair trade practices.
• Mobile App Development: Mobile apps are in high demand across various industries. Establish a mobile app development company catering to businesses and individuals seeking custom app solutions, including e-commerce apps, productivity tools, or entertainment platforms.
• Tourist Experience Services: Sri Lanka is a popular tourist destination. Create unique and immersive experiences for travelers, such as guided cultural tours, adventure activities, eco-tourism packages, or personalized itineraries.
• Online Marketplace for Local Artisans: Support local artisans and craftsmen by developing an online marketplace where they can showcase and sell their handmade products, including traditional artwork, pottery, jewelry, or textiles.
• Sustainable Food Delivery Service: Tap into the growing demand for healthy and sustainable food options. Start a food delivery service that offers organic, farm-to-table meals prepared using locally sourced ingredients.
• E-commerce Platform for Local Products: Develop an e-commerce platform that exclusively promotes and sells Sri Lankan-made products, including handicrafts, spices, tea, clothing, and home décor items, to a global customer base.

Remember, these are just a few examples, and it’s important to conduct thorough market research and assess the feasibility of any business idea before pursuing it. Additionally, consider your own interests, skills, and resources when selecting a business idea.

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simplebooks

May Sun 2021

Team Simplebooks

How to come up with business ideas in Sri Lanka + 5 great small business ideas

Have you ever wondered what it would feel like to own your own business in Sri Lanka? 

Have you been dreaming of escaping the 9 – 5 life, but struggle with figuring out which business ideas in Sri Lanka have the best returns?

Well, if this sounds like you – you’re at the right place. 

We’ve helped thousands of businesses begin their journey in Sri Lanka. 

Along the way, we’ve learnt a thing or two about the factors that set a good business idea apart from a bad business idea. So, if you have been wondering about how to come up with good business ideas in Sri Lanka, look no further. 

This blog will guide you through the process of coming up with great business ideas.

Table of contents.

• How-to: Develop a good business idea in Sri Lanka

The best businesses in Sri Lanka solve problems

• Validate your business idea
• Look at what other people are doing
• How-to: Make sure your business idea succeeds

Business opportunities in Sri Lanka

How-to: develop a good business idea in sri lanka .

Now, this might be your first time settling into the entrepreneurial mindset.

Or, you might’ve already tried a few times before this. 

We’ve had the opportunity to help a lot of budding entrepreneurs craft and perfect their business ideas along the way.

The most common trope we’ve come across is entrepreneurs that have tried and failed multiple times solely because they didn’t have a good process in place to develop their business idea along the way.

If either of these cases sound familiar to you, here are a few steps you can follow to develop your business idea.

Step 01: Make sure your potential business solves real life problems.

Step 02: Validate your business idea.

Step 03: Observe the market. 

Step 04: Ensure that you’re passionate about what you’re doing.

Having a good, foolproof process like this can help you eliminate the bad ideas and nurture the good ones.

Let’s take a look at all of these steps in detail. 

You heard that right, good businesses that make the most money in Sri Lanka solve real problems of everyday people. 

Let’s put aside local businesses for a second. What about global businesses? Do they follow the same rules? You bet! Think about Apple. 

Let’s go back to the very beginnings of the iPhone. What was Steve Jobs trying to solve when he and his company, Apple, invented the iPhone? 

Poorly designed phones. 

Back in 2007, technology was rapidly developing. However, the phones at that time didn’t really reflect that. Don’t get us wrong, even the team at Simplebooks have really fond memories of their old Nokia brick phones and their Motorolas. But, they weren’t the high-tech, uber-functional and futuristic phones we had all seen in time-travel movies. 

Then came the iPhone. A beautifully designed and functional mobile phone that solved a real problem people faced. Because it solved a very real problem, people lined the streets to get their hands on this new gadget.  And what followed this newfound iPhone craze? Money. A lot of it. 

Let’s take a look at a more local example.

Since we’re the ones writing this article – we’ll put ourselves to the test. 

Is Simplebooks solving a real problem? 

When we first started Simplebooks in 2017, it was really because one of our founders was very unhappy. He had been trying to register his new company for a few months, and the registration process was driving him insane. 

He couldn’t find a proper registrar that kept him informed about the process, registering a company took a long time (with a lot of delays in the middle), and the prices to register kept changing from time to time.

He. Was. Angry.

After talking to a few of his fellow entrepreneur friends, he realised that his peers were facing the same problem as well.

The Sri Lankan company registration process seemed overly complicated, there was no reliable information on how to register a company in Sri Lanka , and everybody had different prices for company registration. 

That’s when a new business idea struck him.

So, he got together with a colleague (who was a registered company secretary) and started Simplebooks.

And, how have we fared through the years?

Well, what started as a two-person company in 2016 is now (in 2021) a 30+ person company that has helped over 2,000 businesses begin their journey in Sri Lanka. 

So, the first step in coming up with a good business idea is to make sure that your idea solves actual problems. 

Validate your business idea 

You might ask yourself “But how do I know if my business idea is good?”.

This is a very good question to have.

However, you can improve upon this idea.

Instead of asking yourself “How do I know if my business idea is good?”, ask yourself “Will I, or anyone I know benefit from my business?”.

It’s as simple as that. 

As always, the best place to start looking for answers is by asking yourself. 

So, does your business idea solve a problem you’re currently facing?

If not, that’s fine.

The next place you can look at is your family and friends.

This is pretty easy to do as well. All you have to do is reach out to them. Send them a text, or write them an email, or give them a call, or better yet – invite them for a quick coffee and chat.

Get in touch with the people you’re closest to and ask them if your business idea:

• Adds any value to their lives 
• Solves a problem they are facing

And, when they’re giving you their feedback – remember to listen and take notes. Their responses could give you a lot of insight.

A radical approach to validating your business idea 

Here’s a completely different take on business idea validation – don’t ask yourself and don’t as your friends. 

Instead, let the market decide. 

Here’s the problem with our first approach – it only works if business your business idea is relatable to you or the people around you. 

What happens when your idea caters to niche audiences? Or demographics that are different to you and those around you?

This happens more often than you might think. 

So, what do you do then?

Market research, trial and error. You need to research your actual target audience and pitch it to them. 

Now, this carries a lot more risk. You don’t have your previous safety net. It’s a whole new world. However, you can still take the risk. Create your product or service, pitch your idea, and check if you can get paid customers. That last part is the most important bit. 

You need to have people that are willing to pay for your product or service. Take people’s feedback, re-work your idea and keep pitching until you have paying customers. If you don’t have paying customers, your business idea doesn’t work. 

Look at what other people are doing 

Now, I get that this might sound unoriginal. 

But, hear me out. 

If you’ve read Step 01 and 02, but still haven’t been able to come up with a business idea of your own – you can always try looking at what others are doing. 

Here’s the twist. Once you’re done looking at what other people are doing, try to look for what they’re not doing. 

Here’s an example:

Let’s say that you’ve looked around at the market (more specifically at what the successful start-ups are doing) and you decide that a furniture shop makes the most sense for you to start.

You notice that your potential competition does a few cool things like:

• Letting the customers choose their own type of wood; 
• Offers free delivery; 
• Uses state of the art equipment.

However, you also notice that they lack a few other services like:

• Letting the customers choose their own designs (your competition only offers a few limited designs);
• Doesn’t offer instalment plans for wood-work; 
• Has a very outdated web + social media presence. 

So, what do you do?

You take notes and offer your customers what your competitors offer + other services that they don’t offer as well.

• You didn’t exhaust your creativity by having to come up with an idea yourself; 
• You drew inspiration from those around you that have already made it; 
• You found gaps in the market that you could profit out of 

How-to: Make sure your business idea succeeds 

You might come up with a really good business idea if you’ve followed this article up to now.

However, here’s the catch. 

To make sure that your future business has a chance at succeeding, you need to 

• Have a vested interest in it and;
• Have the technical skills to operate the business. 

This is a lot to ask yourself but, DON’T FREAK OUT. 

You can still succeed if you have at least one of these qualities.

Look at it this way: If you have a vested interest in your business idea, but you don’t really have the technical skills to operate the business; you can always hire someone with the technical skill set. 

But, you almost always need to be interested in your business idea. This is especially true if you’re going to start small. 

When you own a small business in Sri Lanka, you need to be able to give it your all.

This is kind of hard to do when you aren’t really too interested in the business you started. 

So, before you jump right in and begin – make sure you’re passionate about what you’re going to start. 

Still, have more questions? Let us help you!

All of the steps we’ve mentioned above should help you get started. 

However, if you’re still struggling a little – here are some of the successful new businesses in Sri Lanka that you could consider getting started in. 

• Start an online business in Sri Lanka

Have you seen a lot of new online businesses pop up and advertise on your social media pages?

Ever wondered why?

More and more people have gotten accustomed to shopping online over the past few years.

This means that people are likely to trust and purchase from online stores more than ever now. 

You’re also at an advantage since there are a lot of infrastructure like widely available payment gateways to support your business activities. 

You can jump right in to the more common stores like:

a. Clothing b. Jewellery c. Computer accessories

Or, you could find niche markets that will enable you to sell unique products like.

• Provide an online service 

If you aren’t really interested in selling products online, you can always sell a service online.

Just because we said ‘online service’ doesn’t necessarily mean all of your business’s services have to happen online.

You can choose to either run a completely online business or use the internet to help you find leads and expand.

• Become self employed

Okay, the title sounds super vague. 

But hear us out.

If you’re already at a place in your life where you’re good at something, you can capitalize on that skill.

Let’s say you’re great at math, or you’re very educated and experienced in a certain field.

There might be a bunch of people online that are looking for the knowledge that you possess. You can attract an audience by dispersing your knowledge either by writing about it or making videos about it.

Once you have a fair bit of traction, you can start monetizing on your audience.

You can either ask your audience to pay or invite advertisers to use your platform in exchange for money. 

• Join the mobile food movement

Colombo is buzzing with people that are always on the move.

If you’ve ever wanted to get involved in the food industry, you can use this to your advantage.

Since people are always on the move, you don’t have to open a physical restaurant straight-away.

Instead, you can opt to start with a food truck.

This will help you keep your fixed costs really low and allow you to focus on making really good food.

Since you’re on a mobile food truck, you can always make sure you’re available at the right places.

Use this to your advantage and build some traction to begin with. 

• Get started in IT

When we mean IT, we don’t mean just software development.

If you’re technically competent, you have a lot of options to get started in.

In case you’re good at web development, offer that as a service to people that are looking to start up a website.

If you know your way around domains and hosting, add that to your web development service.

If you’re technically competent and can help people manage their tech projects, offer that as a service. The world of IT is very broad.

This can help you focus on a niche and monetize on that.

Start your business with Simplebooks!

Finalizing your idea and starting a business is only the beginning. 

If you’re really serious about your business, you need to register it with the Sri Lankan authorities. 

This is the only way you can gain access to perks like business loans, and gain credibility with the government and your clients.

But how do you register your business?

It’s actually not that hard. 

Here at Simplebooks, we’ve helped over 2,000 businesses register and get started in Sri Lanka. 

Our team takes care of the entire registration process so that you can focus on more important things like growing your business.

You can start registering your business right away by clicking on the button below!

Introducing Simplebooks Dashboard

Make an account for zero cost and get started on your online journey to register your company

Hassle free business registration

Real-time status updates

All your documents in one place

Get rid of multiple contact points

Make changes in a few clicks

What comes next?

• Have your trademark registered  

Once you finish registering your business, you need to ensure that your brand has been protected. 

The best way to legally protect your brand is to register your brand as a trademark. 

• Get help running your business 

Registering your company is only step one of running a legally compliant business in Sri Lanka. There are a few other legal processes you need to follow afterwards. Some of these include;

• Opening a tax file 
• Maintain book-keeping records of company transactions
• Auditing and paying tax
• Taking care of EPF/ETF requirements of the employees you hire
• Business Registration

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The Most Successful Small Business Ideas In Sri Lanka

1. Cake Baking and Home Baker

Start your journey as a home baker and establish a successful cake baking business in Sri Lanka. With the rising demand for homemade cakes and pastries, this is the perfect opportunity to turn your passion for baking into a profitable venture. From creating unique cake designs to mastering the art of baking, you can build a reputation for delicious and beautifully crafted treats. Join the thriving baking community in Sri Lanka and share your love for baking with others.

2. Freelance Writer and Blogger

Good at Writing? With the internet a booming business now, websites, Some News Agency blogs, are looking for great writers all the time. Blog could give potential visitors a glimpse into everyday Sri Lankans life. Write articles about your favorite local places, services, how to do, and activities, and edit with attractive images.

3. Restaurants

Food is the basic necessity for everyone. Lankans are none too different and so there is always demand for ready to eat good food. Gaining more popularity than traditional restaurants and it doesn’t need much investment for this.

4. Tourist Guide

Sri Lanka is recognized as one of the great travel destinations in the world. Tour Guide would take quite a bit of investment to get going. However, it has so many applications. If the guide is believable or comfortable and it could create a significant unique advantage for a tourism company brings the happiness and memories.

Now a days Tourism in Sri Lanka has always been a large part of the economy. It’s obvious people love to travel Lanka and they will continue to do so. To take it to the next level, you could start a business that creates an augmented reality guide.

6. Bouquet and Floral Artists

Paper Flowers Sri Lanka specializes in sourcing paper flower creations from around the world for weddings, gifts, events, corporate installations and more. We believe flowers really do make an impact in peoples lives. that sells quality items on budget can prove to be a highly profitable business.

7. Web design and Development

Latest web development requires much more than just mastering HTML with CSS and, perhaps, learning PHP or JavaScript. Any web developer who wants to be competitive must become familiar with various frameworks and design, supporting technologies, and new trends. Good place to start with low cost in Sri Lanka

8. Social Media Marketing

Worldwide, there are over 2 billion users on social media. This is a huge market you should be tapping into, and it’s another relatively low cost marketing option in Sir Lanka. Facebook, Twitter, Instagram, Pinterest those are popular in Sri Lanka. All of these platforms are unique and require a unique strategy for engagement, so it’s best to choose the most appropriate for your business. The benefit of social media marketing is that it can be used to increase traffic to your business sites and raise brand awareness.

9. Video Tutorials

Do you have a wealth of knowledge to share? Why not set up a YouTube Video where you post videos teaching your audience how to do something they wouldn’t ordinarily know how to do? If you can create high quality, instructive and creative video content, your business will be seen as an authoritative voice in the industry. More people will come to your business if they can see you know what you’re talking about.

You may want to read these:

Best delivery services in sri lanka, how sri lanka digital marketing can boost your business, business ideas with low investment in sri lanka, follow us on.

If you have any queries or changes with respect to the article kindly share your suggestion in comments. Don’t hesitate to contact us because we are here to help you.

Share this:

I am looking to invest in a small business where i can get a monthly income.

Warisa Wickramaarachchi

Good but looking for low investment small business

just refer below ideas too

http://classifylanka.com/ideas-for-small-businesses-manufacturing-with-low-investment/

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With the financial crisis and the instability of traditional employment opportunities, many citizens of Sri Lanka are turning to entrepreneurship and small business ownership as a way to gain financial independence. However, starting a small business can be complicated and intimidating, especially for those who have yet to gain experience in the area. Fortunately, this guide has all the necessary information to help you get started with your small business journey in Sri Lanka.

Table of Contents

How to come up with a business idea

We’ve seen many individuals in Sri Lanka start their businesses just because someone they know suggested it or they heard that a certain business was profitable. But this is probably the main reason why many businesses fail – it’s not because they weren’t given the right advice or lacked resources, but rather because they didn’t have a well-thought-out plan.

So if you’re thinking of setting up a business in Sri Lanka, the first step is to come up with the idea that you’re passionate about. Do your research, identify a need in the market that you can fill, and figure out what makes your business unique. Check if it is a problem-solving startup that can bring a new and innovative solution to the market or something more traditional.

Ultimately you must consider if it is profitable and financially viable. Calculate the cost of startup expenses, such as licenses, materials, equipment, and marketing costs. If your business idea fits within a realistic budget, you can start to create a business plan.

If you still don’t have any business ideas, here are some profitable ideas to think about:

01. An online store or retail business 02. Export-import business (There is a demand for dehydrated products and spices) 03. Food delivery service 04. A home-based business 05. Event planning business 06. Restaurant, café, or catering business 07. A cleaning service 08. Pet-sitting or pet grooming business 09. Home repair business

No matter what kind of business you decide to start, be sure to check if it is something you are passionate about. This will make it easier to stay motivated and work hard to achieve your goals.

Creating a Business Plan

Creating a business plan involves three main steps.

Market Research

First, you should analyze the competitors so that you can better understand what makes your product or service unique. Research the pricing and competition and find out who your target customers might be.

Then validate your business idea by releasing a minimum viable product or beta version to get feedback from potential customers. If your samples are sold within a month, then your idea has potential.

Execution Plan

Once you have validated your business idea, you need to come up with an execution plan. This includes budgeting for marketing and advertising, hiring staff, choosing the right logistics partners, and so on. A good execution plan can make or break a business. So, choose wisely.

Spot Analysis

It would help if you also took note of your strengths, weaknesses, opportunities, and challenges. This will help you understand your market better and how to make your business work better, even when times are tough. With the information you gathered, you can make informed decisions to keep your business going and growing.

Fund your business

Now that you have a proper business plan and insights into the market, you need to figure out how to fund your business. There are quite a few funding options available in Sri Lanka.

Personal wealth – This option is the most straightforward and involves using your own wealth to fund the business.

01. Venture capitalists/ Investors – This is a riskier option as venture capitalists will take an equity stake in the business and expect a return on their investment.

02. Loan – Taking out a loan is another way of funding your business. You need a good credit score and be able to show that you can pay the loan back.

You can also opt for crowdfunding if you are targeting an international market. This involves setting up a campaign on a crowdfunding platform such as Kickstarter or Indiegogo and raising money from people who believe in your product. However, it may be more beneficial to look for local investors or banks for local businesses.

No matter which option you choose, make sure that you have a clear plan and strategy in place to ensure that you will be able to repay your investors or loans. This will not only help you get the funds you need, but it will also improve your credit score and show potential investors that you are serious about making your business a success.

Register your business

Now comes the legal part. Depending on your business type, you may need to take extra steps and register your business. If you’re looking to register your business in Sri Lanka, there are three options available for you, sole proprietorship, Partnership, and Private Limited registration. However, most businesses choose sole Proprietorship or Private Limited registration as they are the easiest options.

Sole Proprietorship

The sole proprietorship is suitable for individuals who want to run a business on their own. This type of business registration is unincorporated, meaning it has no separate legal entity, and the owner is the business. This is the simplest and least expensive form of legal business registration available in Sri Lanka.

01. Cheap registration fee.

02. Ability to open a bank account under your business name.

03. Flexible business structure.

04. No requirement for minimum capital to start a business.

05. No need to file any document at the Department of Registrar of Companies.

01. All income generated will be considered your personal revenue. Therefore, you are liable to pay taxes on the business income.

02. You won’t have a separate legal entity, so you will bear all the responsibilities and liabilities of the business. (This means you’ll have to use your own assets to pay off in case of a lawsuit or bankruptcy.)

03. You can’t sign any contracts with investors.

04. Limited access to bank loans and other funding options.

05. The death of the owner ends the business.

How to register a sole-proprietorship business in Sri Lanka?

To register a sole-proprietorship business in Sri Lanka, you’ll need to visit the provincial council in your area. Once you visit and explain the kind of business you’re setting up, the authorities will provide you with a bunch of forms to fill out.

They will also ask for some documents in order to apply for business registration. This will include but not be limited to an application form, a grama sewa certificate, A copy of NIC, and legal documents of your business premises (if the premises is not owned by you, you’ll also need to provide a lease agreement or a consent letter), affidavit of the initial capital of the business, and other documents required depending on your business type.

It will take around one week to several months to collect all of these documents, depending on the time you are willing to spend getting them. Once everything is all set, submit them to the provincial council with the registration fee. Depending on the initial capital of the business, you’ll have to pay around 500-3000 rupees.

Once the application is accepted, you’ll be given a registration certificate with an official stamp in 10-15 days. You are now ready to launch your business.

Private Limited Company

Private Limited companies are a more popular alternative to sole proprietorships as they provide more protection against personal liability and offer more flexibility with regard to management structure.

01. Limited liability – owners and shareholders are not personally liable for the company’s debts or obligations, providing greater financial security to those involved.

02. Investor friendly – investors may feel more secure investing in a business that provides longevity and stability beyond the death of an owner or partner, making private limited companies more attractive to potential investors.

03. Easier access to funding – lenders and investors often prefer to invest in businesses registered as private limited companies, giving these businesses better access to financial resources.

04. Easy to register as an importer or exporter – government procedures for registering a business as a private limited company are less complex than those for sole proprietorships or partnerships, allowing faster registration as an importer or exporter when required.

05. Higher credibility – customers, and suppliers may view your business more positively if it is registered as a private limited company due to its established structure and standards of corporate governance, leading to increased trust in your services or products.

01. Cost: Registration of a private limited company in Sri Lanka is a costly process as it involves legal fees and other expenses related to filing and maintaining corporate documents.

02. Legal Requirements: Companies registered as PLCs in Sri Lanka have to comply with various statutory regulations, such as filing annual returns, auditing accounts, and so on, which can be time-consuming and expensive.

03. Limited Liability Protection: Although private limited companies offer some protection against personal liability, they may not provide complete protection in certain cases.

04. Difficulties for Ownership Transfer: Private limited companies impose restrictions on the transfer of ownership, which makes it difficult to pass ownership from one person to another without the permission of all shareholders.

05. Lack of Flexibility: Private limited companies lack flexibility when compared to other types of business entities, such as sole proprietorships or partnerships. The directors are required to adhere to certain rules and regulations, which can limit the ability of the business to adapt quickly and innovate.

How to register a private limited business in Sri Lanka?

To register a private limited company, you’ll have to head over to The Department of the Registrar of Companies . They offer an online registration portal where you can register your company in a few simple steps. You’ll first need to check out the availability of your business name through the portal and reserve it if available (Rs.2500 fee will be charged for this).

You can begin the company registration process after the business name is approved. You’ll be required to enter the stakeholders, directors, company secretary, and shareholder details during the process. The next step will be to download and fill out Form 1 – Company registration, Form 18 – Consent of the directors, and Form 19 – Consent of the company secretary. Along with these documents, you’ll have to submit an Article of Association to finish the registration process. You’ll be required to pay around Rs.8000 for the registration.

It will take around 2-3 weeks to get the approval. Once you get the approval, you’ll have to give public notice about the registration of your company. The notice must include details such as the name of the company, its registered address, and the names of all stakeholders, along with their addresses.

Once all this is done, you can follow the process of opening a corporate bank account and get the documents attested. When you’re done with all this, your company will be officially registered, and you can begin conducting business.

Branding the business

Many newly established businesses skip this step, but it is one of the essential parts of any business. A good brand can help you stand out from the competition and give customers the confidence they need to purchase. Branding your business will also help you create trust and loyalty with customers, which can be beneficial in the long run.

When branding your business, you have two options.

01. Branding your business name

02. Branding your product/s

The branding process is called trademark registration which is a process used to protect your branding from being copied or misused by other businesses. You can register trademarks through the National Intellectual Property Office .

Establish a name and logo for your business/ products.

The business/product name should be easy to pronounce, spell, and remember. It should also be unique so that it is clear from other brands. Especially you must check if the same name already exists and make sure the logo you choose is visually appealing and doesn’t infringe on any existing trademarks. Since the logo is an integral part of your branding, you’ll want to ensure it reflects your business’s values and personality. It should also be versatile enough that it can be used on various products and platforms. Professional logo designers can help you with this task.

Create a website and social media profiles.

Having a website and social media profiles is also essential for businesses today. Not only do they enable customers to learn more about your business, but they also build trust and credibility. A good website should be optimized for both desktop and mobile devices, contain a clear call-to-action and feature information about your products and services. You can get help setting up your website and social media profiles from web designers .

Marketing your Business

A business can not run successfully without properly marketing it. It is vital to have a well-thought-out plan for how your business will be marketed in order to maximize its potential. As for marketing your business, it can be done through both offline and online marketing channels.

Offline Marketing

Offline marketing is any advertising or promotion done away from the internet. This includes television, radio, print advertisements, and direct mail to reach potential customers. Offline marketing is an excellent way to reach a large number of customers, but it can be expensive.

Online Marketing

Online marketing is the use of digital channels such as websites, search engines, social media, and email to reach potential customers. Online marketing can be done relatively cheaply compared to offline marketing and can be used to reach a much wider audience. It’s also easier to track the effectiveness of your online campaigns, which can help you refine your strategies for future success.

Both offline and online marketing is important to the success of a business, but there are some distinct advantages to online marketing. For example, it’s incredibly cost-effective when compared to traditional means of marketing such as TV and radio adverts. You can also use online marketing to target specific customers and demographics, allowing businesses to focus their efforts on those most likely to purchase their goods or services. Finally, online marketing is highly measurable and adaptive, allowing you to make changes quickly in response to customer feedback or trends.

No matter the size of your business, online marketing should be an important part of your overall strategy. From creating a professional website to engaging with customers on social media, online marketing offers a range of opportunities to reach your target audience and measure the success of your campaigns.

At Gavi, we offer a range of services to help local businesses get the most out of their online and offline marketing efforts. Our team of experienced design professionals can design a custom package that suits your business’ budget and objectives. We know the importance of staying on top of the latest trends and technologies, so our team constantly stays abreast of new digital marketing developments.

So, if you need any help with your digital marketing campaigns , such as creating and managing social media accounts, developing content strategies, optimizing websites for search engine visibility, or analyzing performance metrics – just give us a call. We’re here to help you achieve your goals and make the most of your digital marketing budget. Get in touch today and let us work together to create a customized package that perfectly suits your needs.

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Last Updated on March 28, 2023

Home » Business » Best Small Business Ideas in Sri Lanka [TOP #20]

20 best small business ideas in Sri Lanka

Sri Lanka is a small island, but it can fulfill your big dreams. It is located in the south of India in a pleasant and profitable environment in every aspect. The population of Sri Lanka is only 20 million. Here people speak Sinhala, Tamil, and also English. Though Sinhala is the local and common more of communication yet, you will get English-speaking youth in a large number in Colombo.

The Sri Lankan economy is somewhat precarious, with high levels of debt and unemployment. The political situation is also unstable, with the government facing challenges as it attempts to revive an economy that was only recently declared bankrupt. Despite all this, businesses still have many opportunities to succeed in Sri Lanka. The key is understanding the current situation and tailoring your business strategy accordingly. Here in this well researched article, you will get to information on the best 20 business ideas in Sri Lanka.

Tourism business

Tourism is the fourth-largest source of foreign money in Sri Lanka.

Sri Lanka is surrounded by ocean from all sides, and thus it is the beach lover’s paradise.

Every year thousands of foreign and local tourists visit Sri Lanka to enjoy its sea beaches.

RELATED: BUSINESS IDEAS FOR TRAVEL LOVERS

The tourism department suffered a lot at the time of the civil war among the Sri Lankan Government and LLTE, and during Tsunami yet it is recovering and rejuvenating now.

Thus if you are seeking business opportunities in Sri Lanka, then try the tourism business.

You can offer packages of tours for different spots on the island.

For this, you need to do a little research on the places where most of the tourists come.

You can also open a website to offer your tourism services.

The website will help you to get in touch with international tourists.

A foreign tourist will search and compare online before arriving at a new place nowadays.

So apart from local promotions, you can hire employees for promoting your business online.

In the tourism business, you will have to communicate with tourist guides, transport authorities, hotels, and restaurants.

The more lucrative offer you can provide, the more tourists you can attract.

Be loyal and friendly with them, and your business will flourish in a few years.

Bouquet and floral business

The floriculture industry is budding in Sri Lanka.

Though presently, the present market share of floriculture is 0.2% of the world market, yet it has the potentials to grow—flowers in Sri Lanka for various cultural and religious festivals for ages.

In the western, northwestern, and central province of Sri Lanka, we can see the vast areas for cultivations of cut flowers.

Thus if you start running a floral business in Sri Lanka, you will surely not face any loss.

The temperate flowers grown here are rose, carnation, statice, alstroemeria, gypsophila, lilies, and irises.

Carnation and rose are mainly produced for export to other countries, whereas the other flowers use for local purposes.

So you can expand your floral business out of your country Sri Lanka and approach worldwide.

Orchids and the anthuriums are the most popular tropical flowers in Sri Lanka with a good local and international market.

Annually around 3 million anthurium flowers are grown and cut for market demands.

Sri Lankan atmosphere with a humid and sea surrounded climate provides the best conditions to grow a variety of flowers.

These flowers are high on demands for events like weddings, corporate installations, and a bouquet.

So you can build your nursery, hold a shop to sell flowers, and even export them. These flowers will flourish in your future.

Reading, writing/ blogging business

If you’re a wordsmith who loves nothing more than putting pen to paper (or fingers to keyboard), there are plenty of business ideas out there for you.

A reading and writing-focused business could take a variety of forms, from operating as a bookkeeping service to running a proofreading and editing company.

If you have a knack for finding typos and grammatical errors, you could put your skills to good use by offering your services as a proofreader or editor.

You could also start a blog about your favourite topics and offer paid subscriptions, or work as a freelance writer for other businesses in Sri Lanka.

So you can be:

Proofreader

Content writer

ORM Moderator

There are many reasons to start a blogging business in Sri Lanka.

The country is home to a large and growing population of internet users, making it an ideal market for online businesses.

Additionally, Sri Lanka has a supportive business environment, with a number of government initiatives and programs in place to help small businesses get started and grow.

Finally, blogging can be a highly profitable business, especially if you focus on niche markets.

Construction service business

Sri Lanka suffered from armed conflicts for more than 30 years.

During that time, the construction industry suffered a lot.

But when it ends in 2009, the construction business starts with a new spirit.

And during the last 10 years, the construction business became the major beneficiaries of Sri Lanka’s rapidly grown economy.

We see rapid growth in building high-end residential, hotel and resort construction, shopping malls, and commercial space.

The Sri Lankan government also aids in rapid construction in roads and railway connections.

On the other hand, the construction sector contributed more than 9% of the GDP of Sri Lanka.

In 2015, Sri Lanka ranked 113th position on the World Bank’s “Ease of Doing Business” report, which is great as a small island country.

So if you have good knowledge and a degree in architecture, or electrical engineering, or structural engineering, then earning rupees is not difficult for you.

You can also collaborate, start a business with some of your batch mates, and profit with passing years.

Agricultural business

Sri Lanka has a temperate, tropical climate and also a fertile soil.

This advantage makes it ideal for cultivating varieties of vegetables, fruits, and crops.

Around 30% or the Sri Lankan population is directly or indirectly connecting with agriculture.

The agriculture industry contributes around 7.5% of the country’s GDP.

The most cultivated crop of Sri Lanka is rice.

Sri Lanka also is the exporter of tea. 17% of the country’s export is cause by tea.

Two other main cash crops are rubber and coconut.

Ceylon Cinnamon is the only pure cinnamon in the world, and Sri Lanka cultivates this.

Sri Lanka supplies 32.9% of the world’s total cinnamon demand.

So if you have love and knowledge about cultivations, then you can start growing plants from your backyard.

Rubber and coconut trees do not require much attention.

They just need enough space to grow properly.

Also, if you live in the central or southern region of the island, then cultivating tea is the best option for you.

Your new business of cultivation can give you profit in both rupees and dollars.

Textile and fabric business

Around 15% of the Sri Lankan workforce is dependent on the textile industry for a living.

This also came as a savior for women and stands for true woman empowerment.

Women of Sri Lanka regulate the 80% workforce in the garment and fabric industry.

The textile business here is mainly export centric.

Since the Multi-Fiber Trade Agreement signed in 1985, the industry has developed rapidly.

Not only local ethnic ware and handloom products but also versatile, trendy outfits, Sri Lanka, produces all.

The textile companies of Sri Lanka also made a name in the fashion world.

The top 3 textile companies of Sri Lanka featured in Top 50 Garment Companies in The World.

So manufacturing fabrics or garments is one of the best business ideas in Sri Lanka.

You can start producing jeans in a small level.

With proper planning and investment, you will get considerable returns.

Ayurveda Herbal Product business

Ayurveda is an ancient practice of medicine that originated in India.

Ayurveda is one of the oldest and most respected systems of medicine in the world, and there is a growing demand for ayurvedic products both in Sri Lanka and abroad.

As people become increasingly interested in natural healing methods,Ayurveda herbal products are in high demand.

According to the  UN Population Division , the population of Sri Lanka will increase by about 4 million from 2020 to 2022. This presents a great opportunity to the health care industry as a whole, and the natural healing movement in particular.

Sri Lanka is the perfect place to start a business in this growing industry, as the country is home to many ayurvedic herbs and plants.

If you can provide quality ayurvedic products to your customers, you will be able to tap into a large and growing market.

These businesses cater to the growing demand for natural and herbal products, and they offer a wide range of herbal products that can be used for various purposes.

If you are looking to start a business in Sri Lanka that is both profitable and based on ayurvedic principles, then an ayurvedic herbal product company may be the perfect fit for you.

With the right marketing and production strategy, an ayurvedic herbal product company can be extremely successful.

Recycling Plastic

If you’re determined to start a profitable business in Sri Lanka, recycling plastic is a great option.

Not only is it benefitial for the environment, but there’s also a growing demand for recycled plastic products.

To get started, you’ll need to set up a collection and processing system for used plastic.

Once you have a steady supply of raw materials, you can start manufacturing recycled plastic products.

There are many different businesses you can start in this field, so do some research to discover the right one for you.

With some hard work and commitment, you can be successful in the recycling plastic business.

Direct sales consultant

If you’re looking for a business that is both profitable and relatively easy to start up, then direct sales consulting could be a great option for you.

Sri Lanka is a country in the process of rebuilding its economy, so there is plenty of opportunity for businesses to succeed.

As a direct sales consultant, you would be responsible for helping businesses to grow and expand their operations.

This could involve anything from providing advice on marketing and sales strategies to helping to develop new products and services.

There are many reasons why a direct sales consultancy would be successful in Sri Lanka.

The country has a large population, a growing economy, and a strong desire to improve living standards.

Additionally, the government is supportive of foreign investment and is committed to creating an environment that is conducive to business growth.

Sri Lanka also has a well-educated workforce and a large pool of potential customers. All of these factors make Sri Lanka an ideal market for a direct sales consultancy.

If you have the determination and ambition to help businesses to succeed, then direct sales consulting could be the perfect career for you.

Curry powder making business

Sri Lankan cuisine is characterized by its unique blending of spices.

The gorgeous island nation of Sri Lanka has a long history of spice trading, and as a result, its cuisine has been inspired by a variety of cultures.

One of the most favoured spices used in Sri Lankan cuisine is powdered curry. 

Curry powder is a combination of different spices, such as cumin, coriander, turmeric, and chili pepper. It is typically used to flavor meat or vegetable dishes.

Sri Lankan curry powder often has a more complex flavour than other types of curry powder, due to the addition of additional spices such as fenugreek, cloves, and cardamom. 

A curry powder-making business would be very lucrative in Sri Lanka due to the high demand for this spice.

Curry powder is a core ingredient in many Sri Lankan dishes, so there would be a constant market for this product.

Plus, as Sri Lanka is a tourist destination, curry powder would also be popular among visitors who want to take home a taste of the country.

Start a gym business

One of the best small business ideas in Sri Lanka is to start a gym.

As time is passing, most youths are getting interested in fitness.

And this happens irrespective of gender.

Both male and female customers gathered on a gym to lose their weight and then keep them fit and strong.

To start a gym business, you need to find a suitable place where you easily get your targeted audience.

For instance, you can set up your gym business beside a college or near a residential complex.

You can attract the dwellers by providing them exclusive offers on limited periods.

Gym training business is into two types; weight lifting and freehand exercise.

In the weight lifting procedure, you will have to have all the necessary equipment in your gym.

While for the freehand model, you can include yoga practice, Zumba dancing, and meditation practice on your gym schedule.

You will get customers for both types of models.

So if you have a free space in front of your house, then set a gym business there.

You can then make it large or shift it once you get profit from your business.

Set up a mobile coffee shop business

If you do not like the restaurant or fast food delivery business ideas in Sri Lanka, you can try it.

A mobile coffee shop business will not require much from you apart from your coffee making skills.

You can offer healthy snacks like burgers, patties, sandwiches along with it.

But you will have to consider the cleanliness and hygienic part of it.

You can even buy an old unused minibus and then renovate it as a movable mobile coffee shop.

You can hold your coffee stall near a market place, shopping mall, cinema hall, or near any college or university.

A beachside coffee shop will also be a profitable business for you.

The hot coffee and snack from your little shop can provide energy and dating opportunities to the youth.

The best thing is that you can run this business solely by you.

This business does not require much manpower.

In a mobile coffee shop, you will have to make and serve food all by yourself.

However, you can get helping hands if you want.

Mobile phone selling business

Smartphones are now everyone’s necessity.

It is equally demanding in every stratum of society.

And this business field is increasing rapidly.

And there is no sign of decreasing in its market demand.

Instead, it will double up with time.

So if you want to start small business ideas in Sri Lanka that will run for generations, then own a mobile shop for you.

The size of the shop will be according to the amount of money you can invest as capital.

But the size does not matter if you fill your shop with quality products.

Research the brands that are popular in the country, and give them a priority.

Do not miss out on the new arrival of smartphone series as they cause a sensation among the youth.

Also if you know about mobile technology, then you can set a mobile repair shop for yours.

Thus you can fix the mini trouble of smartphones.

You can even provide exchange offers on the same brands.

Almost all smartphone brands are now offering exchange offers.

People also now phone to exchange and buy a new model rather than repairing the old one.

So if you can, then combine all of this in one business.

The customer can buy, sell, or repair their smartphones in your shop.

Thus you make your business a complete one.

Labour outsourcing business

A labour outsourcing business is a business that provides labour to another company.

This type of business is typically used by companies that lack the time or resources to train their own employees.

Labour outsourcing businesses are typically found in countries with a high unemployment rate.

There are many reasons why labour outsourcing in Sri Lanka is a profitable business to start.

The country has a large pool of skilled workers, and the cost of labour is relatively low.

In addition, the government is supportive of businesses that create jobs and provide training opportunities for the local workforce.

As such, there are numerous incentives and programs available to those who want to set up a labour outsourcing business in Sri Lanka.

With the right planning and execution, this can be a very successful and profitable venture.

Event management business

Event management businesses are some other effective small business ideas in Sri Lanka.

With the advancement of social media, every couple wants to plan and project their special day in front of their followers.

There is a sense of show off in it.

Also, some like to celebrate their special day without any worries or last moment mess-ups.

Thus, leave the entire duty on the experiences of event managing business organizations.

So if you have a creative self in you, then you can try your luck here.

You can create your event management business even from your home.

Meanwhile, you do not need to invest in this business as the entire spending of the events will be done by the customers.

You will only have to set up the entire program systematically, uniquely, and creatively.

The event can be of any type starting from the birthday parties, weddings, anniversaries, office parties, get-togethers, to film festivals.

For a successful career in the event management business, you need to build a friendly network between the caterers, florists, banquet halls, performers, electricians, and among every other necessary supply.

This business will grow with experience.

With time you will know the ways to be presentable.

With experience, you can understand the unspoken desires of your clients and thus win their hearts.

You can start these small business ideas and make them big.

Photography business

If you love to click photos and earn a degree or certificate for that, then use it.

Photography is among the small business ideas in Sri Lanka that are extremely on demand nowadays.

As I have mentioned before, the tendency among people to make their special day look perfect and presentable in every aspect.

A pre-wedding photoshoot is famous now worldwide.

It can also be the best business in Sri Lanka.

Here the upcoming bride and groom pose together to announce that their love is going to get a title.

Then these photos are used in their invitation cards and, most importantly, on their Instagram handles.

Thus, a skilled photographer and videographer is now a highly demanding person.

To become a professional photographer and start your business, you will just need the equipment to click a perfect picture.

But to reach potential clients, you need to build a strong profile of your own.

Nowadays, what looks better sells better.

Thus you can create a page on FaceBook, Instagram exclusively to showcase and promote your photographs.

Also, if you can, then create a website to provide extra information about your photography.

Business through youtube

A successful YouTube channel with millions of followers is the dream of every youth now.

One successful YouTuber can easily earn more than 1 lakh rupees per month.

You can make a Youtube channel concerning about any field.

It can be informative or for total entertainment.

It depends on the way of the content you can deliver.

Though roasting, gaming, and entertainment-related channels get the most of the views, yet, the informative, study-related channel can also score well.

For making business through YouTube, you need to shoot and edit a catchy, appealing, original, and informative video on your channel.

You will have to be unique and consistent in your business.

Also, collaborating with YouTubers with greater subscribers can boost your subscriber numbers and business.

Once you get enough subscribers, then you can get money by showing ads and promoting them on your videos.

Youtube also recently includes a paid membership option on it.

So you can earn directly from your fans in this business.

It can also be a great home-based business in Sri Lanka.

Business as an Instagram influencer

Instagram is another social media platform where you can show your skills, lifestyle, fashion ideas, travel clicks, and become an Instagram influencer.

The work of an influencer is to inspire their followers for something.

Here also you can earn from the paid promotion of brands.

Everything that you share and create in social media is content, and it is no harm to earn money from it.

This one type of small business ideas in Sri Lanka is growing vastly.

These businesses are unconventional but have a promising future for you.

Beauty salon business

In case you are wondering what is the small business in Sri Lanka, you can certainly consider this one.

If you know the art of makeover, then this business is for you.

One of the effective small business ideas in Sri Lanka is thus to set up a small beauty parlor.

RELATED: TOP BUSINESS IDEAS FOR WOMEN

You may think that only women can get work and success in this business.

It is wrong. On the contrary, we see that both men and women work side by side in the beauty and fashion world.

You can start your small business in front of your home.

And also you can also set a mini parlor and do the works of hair cutting, waxing, threading, and makeups.

You can also provide beauty services in the customer’s homes.

And once you get enough rupees back, then you can look for bigger settlements.

Import-export business

Sri Lanka is a small island.

It is thus not possible to grow or produce everything here.

Therefore it imports a lot of food and essential items like medicine in the country.

Also, I have mentioned that Sri Lanka exports garments, rubber, and tea in a great amount.

Thus to create an import-export business is among the small business ideas in Sri Lanka that will work.

You will have to choose the products that have great demands outside and inside the island and then buy and sell them to profit in your business.

Business ideas in Sri Lanka conclusion

These are the top 20 small business ideas in Sri Lanka that you can try to get a promising future.

None of these businesses can give you success overnight. The key to your business’s success will always be your hard work.

But the choices you take are the most important thing. So sit and think about these 20 small business ideas in a relaxed mind.

Give thought to the pros and cons of these businesses. And then decide where you want to put your hard works.

Your choice of today is going to pay you in your future. So think wisely and start afresh.

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Business Today TOP 40 2022-2023

They Became the Beacons of Hope in a Critical Moment in Sri Lankan History.

The Business Today TOP 40 for 2022/23 comes out at an opportune time. It covers a challenging period in Sri Lanka’s history – a time that seemed to stand still. But a year later, through the Business Today TOP 40 award, one witnesses a business landscape that has been on the move against all the odds and ensured the delivery of goods and services to Sri Lankans, and the awards are in appreciation of their response to a nation in need.

Words Jennifer Paldano Goonewardane.

Corporates epitomize the heart of resilience. They are a textbook in fighting the good fight and running the race even as everything around them closes in on them. The year that they had just passed was like a tempest. They describe their operating environment in the most powerful words – unparalleled, profound, dynamic, volatile, and uncertain. But then, they prevailed. The Business Today TOP 40 awards for 2022/2023 are an ode to hard work and conquering the unconquerable. They all rose to sail across the winds by adjusting their sails, leveraging opportunities, reorienting, envisioning, innovating, being proactive, spirited, and bold. It was a time of inspiration, leadership, and endurance. If there is a testament to the permanency of changeability, then 2022 would stand out, especially in Sri Lanka. 

But it’s in these variances that stories of resilience and perseverance emerge, and through the TOP 40 awards, one meets such stories of immense sacrifices and compromises, of people who continued to believe that Sri Lanka could win, that it could rise after all. The forty companies that have found a place in the Business Today TOP 40, in a spirit of ‘never saying never’ and with the courage to continue, faced an environment where key indicators were on the move. It was a period of economic activity amid contractions. They had to contend with rising inflation and interest rates, energy security and tariffs, shrinking forex liquidity, currency devaluation, increasing taxation, import restrictions, and enlargement in working capital while critical economic sectors such as agriculture, manufacturing, and services recorded contractions. While those seemed to be the order of the day, given their maturity, the forty corporates, primarily diversified, ensuring that all eggs were not in one basket, adopted strategies, robustly pursued prudent financial management in which cost-cutting was vital, and kept an eagle eye on the operating environment to spot risks and incoming shocks and trends. At the same time, the events demanded a solid proactive and hands-on approach to operational management. When a product or sector took the brunt of a downturn, the leaders promptly switched to float and promote alternatives that side-stepped the problems brought about by the other. 

The impact was collective. However, some harnessed the strengths of their subsidiaries whose businesses did feel the pinch of price escalation on production but got cushioned by the growth in returns. In contrast, some others have had to accept an overall dip in performance as price hikes impacted multiple sectors, such as organizations operating in construction, leisure, consumer foods, and financial services, which had to make do with subdued performances owing to macroeconomic constraints but managed to contain the situation through prudent financial management. 

The financial services sector faced enormous challenges. Collectively, they had a lot on their plate – rising interest rates, inflation, and exchange rate pressures, while non-performing loans were piling up amid reduced demand for credit and costs escalating. With Sri Lanka halting its debt obligations, local banks could no longer issue letters of credit. In addition, subdued economic activity and weak investor confidence meant the sector had to deal with limited opportunities for credit expansion. Remarkably, the financial services sector stepped forward to perform its duty towards the country, in doing its part to help the government re-set the growth trajectory and hence sat down with their borrowers, representing SMEs, the economic drivers, to help them restructure their loans while offering moratoria and other concessions. This level of magnanimity towards this vital ecosystem allowed businesses to continue, ensuring jobs and economic activity. But it was no easy task. It was like walking on broken glass, balancing the external environment, regulatory measures, and assuaging customer requirements. In doing so, many financial institutions took the fall. However, given their solid asset and capital bases together with their reputations, they stemmed the fall and rode the wave to safety in their year of reporting. But that hasn’t made them complacent. They know the vulnerabilities of rising non-performing loans and tight liquidity conditions. Hence, they are rooted in the present, watch the future, and are ready to respond to new challenges from lessons learned. 

The State’s response to the scenarios is well-known and documented. The companies supported Government efforts to set the course to economic recovery that included increasing the standard corporate income tax rate, removal of certain concessions, raising the marginal personal income tax rate, and raising the standard on value-added tax, among others. This enormous shift naturally impacted the businesses during the reporting period and told on their bottom lines. However, as a prerequisite to spearheading the recovery process and setting the engine in motion, the corporates welcomed the IMF’s Extended Fund Facility and are pinning their hope on its ability to strengthen multiple areas of the economy. The IMF is pushing for revenue-based fiscal consolidation, accompanied by stronger safety nets and fiscal institutional reforms, restoration of public debt sustainability through debt restructuring, achievement of price stability, and rebuilding reserves under greater exchange rate flexibility. The corporates welcome the policy interventions tied to the program, which include a commitment by the government to introduce wide-ranging reforms, such as managing public expenditure, restructuring state-owned enterprises to improve performance, supporting trade and investment, and improving governance and accountability mechanisms. 

Months into the IMF-backed intervention, Sri Lanka is experiencing a return to normalcy, not in every sense, but a semblance of normality is returning with disinflation, a downward trend in interest rates and exchange rate gains, and more substantial reserves to achieve debt sustainability. Corporate leaders are hailing these positive outcomes as a step in the right direction as they desperately seek the infusion of a business-friendly environment in the country and an operating environment that is less volatile than the earlier year. However, the continuity of implementing the proposed reforms is crucial to the recovery process. Any midstream waning will likely threaten fiscal consolidation, revenue mobilization, and reserves.

In the end, there is much to hope for. It may be a long road to recovery, but the signs are encouraging. Sri Lanka is in the recovery phase, and the corporates are relieved. In the short to medium term, the corporates expect the challenges to remain amid curtailed consumer spending and economic activity. The World Bank projects positive growth in 2024, an economy that contracted by 7.8 percent in 2022, 11.5 percent in the first quarter, and three percent in the third quarter of 2023 will see the silver lining of the government’s fiscal consolidation measures. The Asian Development Bank has evaluated the government’s stabilization plan as very comprehensive. Fiscal reforms are critical for long-term macroeconomic stability. That the corporates know and what they desire amid these wide-ranging measures is a measure of caution to prevent their impact on sectors essential to growth and recovery. Businesses in the export space may find it challenging to pursue business expansion with limited investment capacity, which impacts their competitive edge and could dent their forex earning capacity.

The private sector took the brunt of the economic fallout and crawled out of the cramps, if not are still wriggling. It must be equally more complex for those in decision-making to reroute the wayward indicators back on track and declare to the world that Sri Lanka is ready for business. President Ranil Wickremesinghe said Sri Lanka will no longer be treated as a bankrupt country upon securing the Extended Fund Facility with the IMF. That was in March 2023. Since then, Sri Lanka has come quite a distance from its woes of the previous year. But the journey has been a difficult one. Wickremesinghe has often pointed out that as the country’s economy lay in shambles, the presidency vacant, and the political system in disarray, no one was willing to take over the helm, not even the critics. He took up the highest job in the country with nothing to offer. The coffers were virtually empty. He didn’t promise the moon nor pledge to change the situation overnight with the wave of a wand. The recovery will be slow, Wickremesinghe has always said. However, he has equally been confident of Sri Lanka’s bounce back and the support of creditors and multilateral agencies in staying the course of recovery. He has admitted that his role as President in the past year was one of the most challenging jobs he had done, which he has survived following a year of it. At the same time, he deems the job of Treasury officials to be more complicated than his, having to achieve the envisaged figures to help him progress with the economic recovery agenda. The central bankers had an equally tough time. Their decisions were equally onerous as they drove monetary policy decisions during a challenging period for the people and businesses, which were hard decisions, such as the devaluation of the rupee and increasing policy rates to contain inflation and shore up reserves. The Governor and the Central Bank had to take the flak for their decisions, including the decision to halt debt repayment. However, the President, the central bankers, and Treasury officials persisted and prevailed, the results of which are slowly visible, much to the relief of the private sector. Indicating that there is much to do to bring about comprehensive changes to the system, Wickremesinghe is a proponent of IMF’s proposed reforms, fiercely supportive of cutting down public expenditure and driving efficiencies while advocating strongly to replace Sri Lanka’s archaic economic model with a new one where private sector investment will be front and center. The leaders of Sri Lanka’s top companies have endorsed the recovery efforts so far, especially the EFF and debt restructuring efforts, and hope for political stability in the future to usher in economic stability.

But this time, Sri Lanka can only afford to succeed. It can’t afford to take one step forward and two back. Now is Sri Lanka’s opportunity to change for the better, rethink its development model, and elevate trustworthiness. Now is an excellent juncture to pivot a different proposition to the private sector, just like what the IMF-led agenda proposes to encourage private sector activities by synchronizing trade and investment policies, thereby driving export growth and lessening the economy’s dependence on imports. Now is the time to reduce the misallocation of resources in favor of state-owned enterprises, stop their inefficiencies and monetary losses, enhance productivity and competitiveness, trade and investment and elevate the private sector to consolidate their positions, support a robust export-oriented economy vis-à-vis supporting SME growth, modernize traditional sectors, drive innovation and technology, invest in research and development, increase trade competitiveness by joining global and regional value chains and help the country return to a green, resilient and inclusive recovery and global competitiveness. The road ahead seems visible. Choosing to take that path is ours.

In making the Business Today TOP 40 awards relevant to the times, every year, the awardees and their rankings are decided according to the prevailing economic situation in Sri Lanka. Hence, the 2022/2023 Business Today TOP 40 awards are significant in the country’s recent history. Notably, the Business Today TOP 40 platform brings the potential of Sri Lankan corporates to the fore. It is an opportunity to showcase to the country the private sector’s vital role in economic growth and their constancy when everything seemed to come to a standstill. Their stories are worth reading, hidden reserves of courage to not survive but thrive and create value across the board.

We thank Keith Bernard and Shiron Gooneratne, who have been part of this listing for years. We cherish their invaluable support and guidance. KPMG Sri Lanka assisted in tabulating the Data. 

1. Commercial Bank of Ceylon

In an eventful year, the largest private sector commercial bank in Sri Lanka, Commercial Bank of Ceylon is number one in the Business Today TOP 40 corporate awards, an extremely worthy achievement for the Bank, which, like the rest of its peers proved its mettle and emerged indisputably strong in a risk-elevated domestic and global backdrop. Kudos to Commercial Bank for successfully navigating the ‘perfect storm’ with forward-looking strategies and a calculated combination of taking advantage of its strengths, profiting on selected opportunities, managing risks, and minimizing the impact of threats. It ended 2022 triumphantly with a solid performance that included making the highest-ever impairment provision in a year, the first in the Bank’s history.

Maintaining its status as a systemically important bank in Sri Lanka, Commercial Bank ran a well-thought-out program to steer through the economic crisis that seemed insurmountable and unattainable at its height and looking back on its performance in the reporting period. The Management is highly pleased with the outcome that showed a marginal decrease in post-tax profit compared to the previous year.

The immensity of the macroeconomic volatilities failed to deter Commercial Bank from maintaining its flagship reputation and legacy. Professor Ananda Jayawardane, Chairman of Commercial Bank, attests to the resilience and grit of the Bank through 2022. They planned well, he said, with the strategic planning process to which the Bank’s five-year corporate plan and budget are integral being set on a rolling basis, allowing it to respond according to the shifts in the operating environment. Guided by constant strategic stewardship of the Board, the challenging period focused on managing forex reserves, facilitating remittances, promoting export-focused relationships, prioritizing crucial imports, and supporting threatened businesses through rehabilitation while strengthening their position in the SME and micro enterprise customer segment, especially with women-led and women-connected enterprises.

Championing the cause of empowering women in the workplace and the community, Commercial Bank provided fair access to capital and tailored solutions, specialized education, and advisory services to many women in Sri Lanka. Commercial Bank’s Managing Director/CEO Sanath Manatunge said that the Bank’s collaboration with the International Finance Corporation under the IFC-DFAT Women in Work program increased women’s access to finance. In a testament to its commitment to promoting SMEs and enabling their growth, the Bank revisited its SME portfolio to gauge their growth prospects and prioritized the portfolio quality to manage the pressure on profitability and capital. The Bank has participated in government-sponsored credit lines introduced by funding agencies and the Central Bank to assist SMEs. Moreover, it has extended its outreach towards rural and semi-urban areas under the agriculture and micro-finance segment.

The Bank graciously offered a lifeline to the hardest hit SMEs, and in acquiescing to Central Bank instructions, the Commercial Bank considered special moratoriums for loans for the value of 175 billion rupees, of which 41 billion represented SMEs. Commercial Bank celebrates its commitment to the country’s economic recovery and supporting development by reaching out to its customers needing relief. It has offered 668 billion in moratoria to over 54,000 customers across all segments, continuing to lend and provide liquidity to support economic activity.

Speaking on their performance, overall, the results reflect their appetite and tolerance of risks, which Manatunge assures continues to be well managed, especially in the context of the challenges faced by the economy and the banks. As a Bank that toes the line, they will continuously focus on maintaining loan book quality, managing interest rates and liquidity risks cautiously while improving compliance to minimize regulatory and reputational risks. The Bank’s operational performance is due partly to the noteworthy contribution made by its Bangladeshi operations. Customer deposits and deposit growth became the single most significant source of funding for the Bank. The contribution of the Bank’s personal and corporate banking division to pretax profits increased significantly in 2022, driven by increases in net interest income, net fee, and commission income.

Citing their future course, Manatunge stressed that resilience and future readiness will be the Bank’s dual pillars of their plans and road maps, given that the country’s path to recovery will possess some unique challenges while always being vigilant to seizing every opportunity to become the Bank that it has been to the nation through every changing and varying circumstances of the country.

2. Bukit Darah

The thrust of diversified conglomerate Bukit Darah, led by the Selvanathan brothers, has always been to grow and expand its global footprint, and true to its commitment to unwavering growth, the Group with businesses in oil palm plantations, oils and fats, beverages, portfolio and asset management, real estate, and leisure, recorded a tremendously successful outcome of managing its multiple segments with extreme foresight and maturity. Placed second in the Business Today TOP 40 corporate awards, the Group operates a global network of businesses in Sri Lanka, Indonesia, Malaysia, Singapore, Mauritius, and India.

For Chairman Hari Selvanathan, the growth in revenue and profitability amid the diverse industry and country-specific and general risks, especially persistent high inflation, duties, and taxes, is an outstanding achievement. By judiciously pivoting to manage risks, the management steered the diverse businesses towards positive results. To their advantage, Bukit Darah’s business spread across regions and industries buttressed their impressive performance.

As the Group reports, the performance of its diversified industrial portfolio spread in other geographies had helped balance the adverse impacts that specific domestic sectors were confronting at the time, leading to positive outcomes. The Group is a testament to how companies operating in the export sphere reaped the benefits of a devalued rupee, with the Group’s export business reaching an increase in dollar revenue and volumes compared to the previous year. Accordingly, the Group’s beverage sector achieved a massive turnover, with Lion Beer contributing to the growth in the Group’s export volume, reflecting the success of the sector’s targeted market expansions compared to the previous financial year. The oils and fats sector focused on achieving a favorable product mix and acquiring new customers with revenue and profit gains. The oil palm plantations sector also achieved a remarkable growth in revenue in the reporting period. The portfolio and asset management sector strategically adjusted its fund allocation in response to the heightened interest rate regime and favored the higher interest rate instruments to maximize returns, posting growth in revenue and profits.

The Group’s leisure sector results reflect the trajectory of the period, a situation that businesses in general operating in the tourism sector had to weather. Domestic issues were the primary cause, accompanied by decreased disposable incomes, despite which, again guided by the Group’s unwavering pursuit to beat the odds, its leisure sector produced growth, although profitability took a hit. The real estate sector recorded an increase in revenue amid subdued demand for office space as corporates cut back on expenditure, despite which the prime locations under this portfolio benefited from improved occupancy and rental rates.

As tough times called for stringent decisions, Selvanathan explained that managing costs across all sectors in 2022/23 guided their operations positively. As the telltale signs of recovery become visible, Selvanathan called for consistency in tax policies, which pose a risk for the Group that could upend stable plans and investments. In continuing its growth journey, Bukit Darah is astutely managing the risk of rising interest rates by improving financial stability and strategic deleveraging of businesses. The Group’s future trajectory will robustly follow a growth agenda, a mission it hopes to fulfill by expanding its global footprint and driving value across all business segments while enlarging its product coverage in international markets and maximizing efficiencies.

3. Melstacorp

Veteran business tycoon Harry Jayawardena led Melstacorp, a leading diversified conglomerate with a portfolio comprising beverages, plantations, telecommunication, insurance, power generation, textiles, leisure, logistics, BPO, construction support services and healthcare, and other diversified businesses has emerged third in the Business Today TOP 40 corporate awards.

Melstacorp prides itself on being an organization epitomizing endurance, courage, multiplicity, and longevity, qualities that have guided its journey through trying times and molded it into a better shape determined to succeed. This ethos guided the Group in the reporting period, which was marked by a storm of macroeconomic dynamics, helping it keep steadfast to its mission and emerge with remarkable profits. The Group’s subsidiaries – Distilleries Company of Sri Lanka (DCSL), Aitken Spence, and Continental Insurance endured the challenges with resilience, contributing sizably to the consolidated bottom line. Of course, the Group had to face the consequences of some of the shortsighted shifts by decision-makers, notably the ban on chemical fertilizer, which impacted the Group’s plantation sector subsidiaries – Balangoda and Madulsima, amplified by adverse weather conditions, constant increases in labor cost, and finance cost. The fertilizer shortage led to lower yields, although the sector recorded revenue growth propelled by the devalued rupee.

Thanks to the Group’s beverage and brewery subsidiary DCSL, there was a boost to the bottom line. The beverage subsidiaries recorded remarkable profits riding on the advantages of a devalued currency and the contribution from the Group’s diversified sector subsidiary, Aitken Spence.

Key to achieving significant profitability by Aitken Spence, noted Jayawardena, was the contribution of its overseas operations in maritime, freight logistics, and tourism sectors. Its financial sector subsidiary, Continental Insurance also made a notable contribution to the Group’s bottom line. Jayawardena pointed out that their insurance sector grew despite the challenges of increased costs driven by inflationary pressures and the motor vehicles import ban, which the subsidiary circumvented judiciously by venturing into the life insurance business. Meanwhile, the Group’s primary healthcare services provider, Melsta Hospital in Ragama, delivered an impressive growth in performance during the year, with the Management investing in improving healthcare infrastructure and introducing cutting-edge technology to enhance its offerings. Jayawardena also revealed that the Group was in the process of divesting from its telecommunication sector business owing to declining revenues and losses.

As they move forward, Jayawardena is hopeful. The end of their financial year showed a glimmer of recovery in the country’s economy, a transition that Melstacorp hopes would happen to help it pursue its growth agenda, a growth journey firmly grounded in and guided by the four qualities, enabling them to seize opportunities that would ultimately benefit their employees, customers, and shareholders.

4. Hatton National Bank

Hatton National Bank rose to serve the nation fittingly, focusing on resilience and sustenance, where protecting its invaluable portfolio of customers became pivotal in navigating one of the most extraordinary macroeconomic landscapes in the country’s history. In fourth place in the Business Today TOP 40 corporate awards is Hatton National Bank, which recorded moderate growth and profitability for the 2022 reporting period. The Bank’s subdued profitability stems from the absorption of impairment charges, which had escalated colossally in the reporting period and reflecting its commitment to longevity and maintaining trust, HNB had traded growth and profitability to build resilience, which Aruni Goonetilleke, the Bank’s Chairperson during the 2022 reporting period attributes to the Bank’s enduring presence in Sri Lankan’s banking landscape for over a century.

Moreover, the unprecedented macroeconomic changes forced the Management to conduct wide-ranging reviews across the Group to assess their impact on customers, stakeholders, and the Bank. Of concern was the Bank’s investment in foreign currency-denominated sovereign debt, impinging on the Bank’s liquidity and capital, and the impact of increased interest rates on customers that necessitated careful monitoring to ensure recoveries and asset quality.

HNB experienced a positive movement in its retail banking sector, marked by increased deposits. At the same time, the corporate banking segment also supported the growth in deposits, with growth in the export business helping the Bank offset the pause in import activity to a large extent.

The sustainability of the Group was core to their operations. Hence, the Management focused on maintaining liquidity, capital, and people to soften the potential consequences of the unfolding scenarios in the macroeconomic environment. Their high levels of capital, sound asset quality, and robust risk management processes gave them the sails to navigate the stormy waters of the country’s economic realities.

HNB stepped up to the challenge, said Jonathan Alles, Managing Director/CEO. From ensuring access to cash to extending moratoria, the Bank provided a range of targeted interventions that balanced the interests of various stakeholders while ensuring the Group’s sustainability. As a bank supporting Sri Lanka’s economic development, its engagement with the entrepreneur ecosystem has been tremendous. The Bank prides itself on being one of the largest lenders to the sector. Its impactful initiatives include providing concessionary funding to critical industries, facilitating market linkages, and promoting financial literacy and digital capability through regional capacity-building programs.

As they continued their relationship with MSMEs during one of the most challenging periods in history, they showed compassion and sensitivity in their decisions and actions, sensitive to their status as the most vulnerable during the crisis. They hence launched renewed efforts to support them in managing their cash flows. Crucial in their intervention was ensuring businesses stayed afloat in stressed conditions instead of overburdening them with costly debt. Accordingly, Alles explained that the more exhaustive task of carrying them out of danger commenced with portfolio reviews and realigning payment schedules to meet cash flows. Consequently, portfolio growth was not an actively pursued strategy. Instead, the Bank focused on restoring the health of the businesses and capacity building. The SME sector will continue as a primary area of focus for HNB, given its central role in reviving the country’s economy.

Alles maintained that the shortage of forex was one of the most challenging during the 2022 reporting period, preventing it from serving its customers adequately, forcing it to make choices, especially amid stringent rules for importing, prioritizing significant sectors like food, medicine, and energy imports to meet the needs of the citizens. Hence, he said that allocating forex for priority sectors, supporting exports and local manufacturing, driving inward remittances, and regulatory compliance were given precedence. It was a difficult call and a choice to make, said Alles, for a bank that has won multiple accolades for its exemplary corporate citizenship.

A future optimistic HNB that showed extreme resilience during a not-so-easy period locally and globally has prepared it to navigate the future that shows signs of easing in the new reporting period. For HNB, the economic turbulence that impacted performance is an opportunity for change to continue focusing on becoming the most resilient Bank, creating value for customers, and contributing to communities while delivering sustainable returns to investors. As a future-ready bank, HNB, cognizant of possible future instabilities, will reinforce its liquidity and capital buffers and passionately pursue its long-term strategy of becoming the most customer-centric Bank, the best digital Bank, the most preferred employer, and the most resilient and sustainable Bank, and promote sustainable development to support the country’s long-term socioeconomic stability.

5. Carson Cumberbatch

A diverse portfolio of sectors prudently spread across multiple geographies proved a winning combination for Sri Lankan conglomerate Carson Cumberbatch PLC, coming in fifth in the Business Today TOP 40 corporate awards. The Group’s diverse portfolio includes businesses in beverages, oils, and fats, real estate and leisure, oil palm plantations, and portfolio and asset management across multiple geographies in Sri Lanka, Indonesia, Malaysia, Singapore, Mauritius, and India.

Most of its business sectors operate in the export ecosystem to the Group’s advantage, allowing it to leverage the rising dollar value despite cost escalations. Against a volatile setting marked by multiple challenges of price increases, taxes, and disruptions to the tourism industry, the Group excelled in propelling its revenue and profitability in the 2022/23 reporting period.

Contributing to the bottom line significantly was the Group’s beverage sector, represented by Ceylon Beverage Holdings and Lion Brewery, two operations based in Sri Lanka. According to Chairman Tilak De Zoysa, the industry encountered supply-related challenges, high taxes, and currency depreciation, impacting volume growth during the reporting period. Notwithstanding the challenges, the beverage sector continued to drive innovation during the reporting period, making the most significant revenue contribution to the consolidated earnings, propelled by a surge in exports leading to growth in dollar revenue and volume due to market expansion and a devalued rupee.

Meanwhile, the oil palm plantations sector witnessed the highest output in a decade. Price instability in the market had been a concern, judiciously lessening its impact through strategically timed sales and a higher average selling price while managing the adverse effects of inflation and price increases through cost control measures. The oils and fats sector also recorded improved profitability in the reporting period, marked by higher margins in downstream products, driven by improved market insights, a favorable product mix, and successful customer expansion endeavors in Malaysia. The sector strategically invested in plant facilities and reduced its debt exposure during the year.

In tune with the turbulent times that witnessed a downside in tourism, the Group’s leisure sector confronted multiple challenges, the disproportionate increase in operational costs and high interest rates imposing further strain on the sector’s performance. The revenue generated by the Group’s real estate sector grew, bolstered by higher occupancy with new tenants and increased annual rentals from existing tenants. Moderate investor participation driven by uncertainty and concerns surrounding the economy’s direction impacted the Group’s portfolio and asset management segment, which recorded a lackluster performance.

The Group hopes for an economic rebound soon accompanied by a favorable economic climate with greater thrust to revitalize revenue-generating sectors like tourism and exports. Fortunately, the Group has confidence in its strength to anticipate the shifting tides and deal appropriately, its past strategic initiatives and capital commitments bearing witness to its readiness. Their strong capital base stands in good stead amid the unexpected, a base the Group has built through prudent Management, and will relentlessly pursue enhancing shareholder value through consistent and sustainable growth.

The Hayleys Group has described its journey during the reporting year as swimming against the tide. The Hayleys Group, with business interests across 12 industry sectors spanning 17 countries, described how it continued its journey even as the tides raged, demonstrating versatility and resilience. In sixth place in the Business Today TOP 40 corporate awards, the Group prides itself on its impeccable reputation as a loyal, partnership-oriented, and valuable entity. Sri Lanka’s leading diversified conglomerate with businesses in eco solutions, hand protection, leisure, purification, textiles, construction material, plantations, agriculture, industry inputs, power and energy, consumer and retail, transportation and logistics, and others went through a grueling time of testing in 2022/23 that forced it to move against the tide. However, guided by clever decision-making and timely action, decisive leadership, and the exceptional mindset of its teams, Hayleys stood resilient to record outstanding results.

Hayleys Group, led by Chairman and Chief Executive Mohan Pandithage, delivered the highest revenue and pretax profits in the Group’s operating history. The growth in its export-oriented sectors, including transportation and logistics, textiles, purification, and hand protection sectors, contributed to the Group’s highest-ever revenue, which Pandithage emphasized was a testament to the Group’s businesses’ extensive socioeconomic impact, being a proud contributor of 5.5 percent of the country’s total export earnings during the reporting period.

The transportation and logistics sector emerged as the most significant contributor to Group revenue, followed by the hand protection, agriculture, and textile sectors. Pandithage stated that high interest rates strongly impacted the borrowing costs of the consumer and retail sectors of the Group, leading to a decline in pretax profits.

The strength of the export market to buttress Group results and revenue was yet again reinforced by the constructions materials segment, mainly bolstered by the rupee depreciation in the wake of the crisis, which, despite the slowdown in the construction industry. However, overall, the sector’s profitability was impacted by the rise in finance costs, leading to a decline in pretax profits. To their advantage, the strategy to enter nontraditional markets and the emphasis on process efficiencies resulted in the eco-solutions sector recording growth in revenue and profitability. Likewise, the Group’s plantation companies also weathered the shortcomings in agrochemicals and increased input prices to record revenue and profitability.

The Group’s leisure sector reflected the countrywide trend, the impact of the economic headwinds in the reporting period, with domestic unrest and instability impacting tourist arrivals, forcing the Management to focus on domestic travelers while enhancing its food and beverages proposition that may have helped revenue growth, accompanied by a persistent focus on cost management and productivity improvement. However, the sector reported an overall loss.

Opening out into regional markets and expanding in export-oriented businesses bolstered the revenue and pretax profits of the industry inputs sector. On the other hand, the power and energy sector was impacted by the downward revisions of applicable tariffs, leading to a drop in profitability.

Driven by the Group’s deeply rooted ‘can-do’ attitude, Pandithage praised the internal teams for their strategic foresight and nimble execution to ensure continuity of operations across all locations, effectively plan inventory cycles, sustain customer confidence, and manage liquidity.

Chairman Pandithage contended that its ability to predict emerging challenges and strategic foresight in addressing the risks helped it build resilience that delivered strong results. Steadfastness, commitment and diversity helped the Group to swim against the tide, allowing it to harness opportunities, beat challenges, and master the unknown. Hayleys Group demonstrated agility and responsiveness to change, leveraging the opportunities amid the crisis to grow while circumventing the weaknesses and the threats to move on as a stronger entity buttressed by the strength of its resources, capabilities, people, and partnerships.

7. Sampath Bank

Like the hazardous sport of swinging from a trapeze, for Sampath Bank, 2022 was akin to the dangerous moves that acrobats do on a trapeze, which, despite the danger, they continue relying on their strength and years of practice. The Bank’s journey in 2022 was the same, a year where it showed strength in motion. In seventh place in the Business Today TOP 40 corporate awards, Sampath Bank achieved a commendable performance for 2022 despite continuous market and operational disruptions. Endorsing their strength and stability from years of practice, Chairman Harsha Amarasekera endorsed the Bank’s performance, which, in a year of change, impacted the bottom line, leading to marginal improvements in revenue, but guided by its expertise and knowledge, the Bank weathered the period in perfect unison and motion. Most importantly, amid the haywire, the Bank’s maturity and judicious conduct ensured that it retained a solid capital base and adequate liquidity, safeguarding the trust of thousands regarding the Bank’s stability and that of the financial system as a whole.

Like its peers, rising tax expenditure significantly impacted the Bank’s profitability, with VAT on financial services increasing at the beginning of the financial year. Meanwhile, the Bank leveraged the interest rate hike to record an increase in Net Interest Income in 2022. It also improved the Net Interest Margin in 2022, showcasing a growth in the interest income over interest expenses. In addition, the Bank’s net fee and commission income also got a boost from the fee-based activities.

As the macrocosmic headwinds blew in, Sampath Bank got into action, moving in tandem to redefine its future, in which the Bank set aside its growth and expansion plans, focusing instead on the adaption of moving in motion to the changes in an uncertain ground of economic uncertainty. Naturally, the Bank had concerns, explained the Managing Director during the 2022 reporting period, Nanda Fernando, regarding rising interest rates and debt repayment. That led the Bank to take a calculated approach to lending, targeting systemically essential sectors of the economy while safeguarding its consumer banking portfolio. SMEs are a critical customer base, and given their value to the economy, the Bank had geared to boost investment in selected SME sectors even during the crisis, especially investments in renewable energy, modern agriculture, information technology, e-commerce, and education, for which it had opened its credit line and the ADB funded credit line.

Having passed a tumultuous period, Sampath Bank looks hopefully to a future of sustainable growth through prudent risk management, high standards of governance and internal controls.

8. Distilleries Company of Sri Lanka

In eighth place in the Business Today TOP corporate awards is the Distilleries Company of Sri Lanka. Harry Jayawardena’s company has emerged victorious with overwhelming performance, sustaining its market leadership and National Long-Term Rating of ‘AAA’. Throughout the 2022/23 reporting period, the business segment endured multiple challenges, notably tax increases, levies, and price increases in inputs and overheads. However, guided by prudent management teams, the Company managed costs scrupulously while high-interest rates favored it, helping it multiply its turnover and profits.

Jayawardena went on to underscore the issues facing the industry, particularly pointing out the tax policy governing the industry. According to Jayawardena, every industry has an optimum tax rate level that maximizes the tax revenue. Whenever there is a breach in a given optimum level from newly imposed taxes, it becomes counterproductive, leaving the industry and the authorities facing its consequences. He lamented that the legal spirits industry in Sri Lanka has suffered as a result of rampant tax imposition, derailing turnover and giving the space for the rise of the illicit industry and given the unaffordability to consumers, there would be a trend towards resorting to unsafe and illegal alternatives. Jayawardena urged the policymakers to reassess the taxation policy on the legal sector to make them affordable to the public and to discourage the consumption of illicit alcohol and substances. He also highlighted the discriminative policies followed by the authorities towards different product categories.

Further, Jayawardena urged the authorities to carefully evaluate the existing retail licenses system as it is paving the way for a gradual monopoly and is enabling bootleggers to sell illegal products with ease while calling for changes to the outdated Excise Ordinance to capture the demands and changing landscape of the industry and the country.

Its market leadership intact, and with years of experience under its belt, the Company, guided by one of Sri Lanka’s veteran businessmen, recorded a two-fold increase in post-tax profit. Customers being the Company’s top priority, Jayawardena noted that it would pursue research, innovation, and improvements to its products to ensure that they are of the best quality and produced according to international standards, thereby continuing its reputation and market leadership.

9. Vallibel One

Vallibel One is geared to face change. Its dynamic system and structures remain in motion to respond to change. Their inherent energy and optimism drive them to seek opportunities amid adversity. And their far-reaching presence and partnerships across many sectors allow it to drive impactful outcomes. That sums up the ethos that guided the operations of Vallibel One in the reporting period. In ninth place in the Business Today TOP 40 corporate awards, Vallibel One, with a portfolio spread across lifestyle, finance, consumer, leisure, plantations, aluminium, investment, and other sectors, adopted responsible resource management, productivity improvements, and well-balanced strategies to record a commendable performance.

As for all, escalating operational costs during the 2022/23 reporting period impacted the pre and post-tax profits of the conglomerate. Chairman Harsha Amarasekera pointed out that as operational costs soared, the Group’s sectors had adopted judicious risk management, cost rationalization initiatives, responsible resource management, and productivity improvements to reduce the impact. In a weakened backdrop where businesses would not seek growth opportunities, the Group’s sectors had engaged in new market opportunities and diversification while elevating their value propositions through product innovation, brand building, and quality assurance.

Supporting the chairman’s sentiments, Vallibel One Managing Director Dinusha Bhaskaran commented on how well the Group had persisted in its mission, pursuing new avenues of growth and venturing into fresh territories to expand its influence and deliver consistent value with the reliance on technology, stakeholder engagement, and flexible structures making them ready to foresee and respond to changing scenarios with ease.

Regarding sector performance, Bhaskaran said that the Group’s lifestyle sector faced demand and supply constraints, which impacted business continuity and performance, strong relationships, optimized channel management, innovation, and prudent planning mechanisms, helped it record growth in revenue and profitability.

Increased interest rates and a tightened monetary policy had impacted the Group’s finance sector, although prudent Management of its product portfolio to drive demand helped revenue growth. The plantation sector was affected by adverse and restrictive policies, challenged by the chemical fertilizer ban, resource shortages, and rising operational costs. However, the sharp increase in depreciation favored the sector’s progress, resulting in revenue growth.

The leisure sector of the Group continued to feel the downsides that began with the pandemic, continuing into the reporting period marked by domestic volatility affecting tourism adversely. Despite the high inflationary regime in the country, the Group’s consumer sector pulled off revenue growth based on its potent marketing mix, customer engagement, and renowned portfolio of brands.

Economic stability is the hope for the future of Vallibel One. The Group is future-focused, determined to create value through holistic growth that ushers in positive transformation for all. The Group is confident of its inherent agility, dynamism, and strength to support achieving objectives. Meanwhile, Bhaskaran said the Group’s onward journey must entail preparedness for every eventuality. On that, Vallibel One will continue to focus on expanding and building capabilities to meet current and future needs while pitching the Group’s diverse products, partnerships, and dynamic approach towards doing business to empower them to retain stability and longevity in the years ahead.

10. LOLC Holdings

LOLC Holdings with a footprint in Sri Lanka, Cambodia, Myanmar, Indonesia, Pakistan, and the Philippines in South and South East Asia; Tajikistan, Kyrgyzstan, and Kazakhstan in Central Asia and Nigeria, Zambia, Zimbabwe, Malawi, Kenya, Tanzania, Egypt, and Rwanda in Africa has been adjudged tenth in the Business Today TOP 40 corporate awards. Deputy Chairman Ishara Nanayakkara, commenting on the operating environment of the 2022/23 reporting period, observed the challenges that the economic and political instability posed in creating stakeholder wealth, despite which the Group had continued diversifying into new markets, citing strong leadership and Management imperative for continued success accompanied by agile and dynamic global teams and in-depth domain knowledge.

As a multinational, LOLC Holdings maintains a business interest in diverse segments: financial services, manufacturing, leisure, plantations, trading, insurance, and a portfolio of auxiliary investments. Commenting on the Group’s global operations, Nanayakkara said that the financial year was a period of consolidation for the Group as it played a pivotal role in enabling financial inclusion for the bottom-of-the-pyramid populations in 18 countries where the Group has its financial services operations. With high interest and inflation impacting the poorest of the poor, LOLC had worked closely with the affected populations across 18 markets to help balance their cash flows and obligations. Despite the domestic and global volatilities, the Group had managed to record strong income growth, which Nanayakkara attributes to the enhanced performance of the local financial services businesses and the achievements of the Group’s global enterprises.

Commenting on navigating the volatility at home, Group Managing Director/CEO Kapila Jayawardena said that agile decision-making and focusing on the needs of their clients helped them prevail over the challenges to emerge with impressive results. Jayawardena pointed out that all their businesses felt the impact of the challenges in the operating environment. As market interest rates rose, the Group’s interest expenditure heightened based on their borrowings. However, high-interest rates attributed to the Group’s domestic financial services to perform remarkably well, contributing to growth in overall revenue, while increased earnings from trading, plantations, manufacturing and leisure sectors, and profits from insurance operations positively impacted Group revenue. He observed that the Group’s geographic diversification was crucial in helping them circumvent the risks, thereby minimizing the negative impact from any single country while having the opportunity to expand and grow the operations in each of the nations, thereby capitalizing on the growth potential from a significantly larger population base.

Sustainability is a core focus of the Group as it moves ahead into the future. In pursuing sustainability, they have aligned all their operations with sustainable development objectives, focusing on advancing women’s empowerment, enabling financial empowerment, automation, and mechanization of farming and small businesses. As a Sri Lankan multinational, Nanayakkara wants LOLC Holdings to exemplify an enterprise that sustainably promotes equity and inclusion. Everyone in the business community hopes for a quick recovery. LOLC is no exception. But as a conglomerate, they have pledged to continue their mission and pursue their growth journey.

11. John Keells Holdings

Through the volatility and uncertainty of the previous years, John Keells Holdings has maintained the belief that challenges can also be triggers for positive transformation, said Chairman Krishan Balendra, whose diversified conglomerate is in eleventh place in the Business Today TOP 40 corporate awards. JKH is one of the largest listed companies on the Colombo Stock Exchange, with a legacy of over a hundred years and a prominent presence in transportation, consumer foods, retail, leisure, property, and financial services, and most recently, has been hailed for two landmark transformative projects – Cinnamon Life Integrated Resort and the West Container Terminal (WCT-1) at the Port of Colombo. Group revenue grew as each sector responded to its unique operating realities. Therefore, it is unsurprising that in a challenging 2022/23 reporting period, the bottom lines felt the pinch, especially the impact of increased market interest rates on driving expenditure upwards, impacting leisure and retail.

The Group’s revenue growth was despite the significant EBITDA contribution from its property sector, which included the revenue and profit recognition from the handover of the residential apartments and commercial office floors at ‘Cinnamon Life Integrated Resort’, compared with the absence of any corresponding revenue recognition in the reporting year.

The Group had to contend with decreased pretax profits propelled by higher finance expenses triggered by increased market interest rates that had a bearing on the leisure and retail sectors, driven by their relatively higher working capital and debt facilities. However, the silver lining appeared from the Maldivian resorts and the recovery momentum in the Colombo hotels and Sri Lankan resorts segments, helping the leisure sector record a strong performance supported by a return to normalcy on the back of continued political and social stability during the second half of the financial year.

Steep increases in fuel prices and volumes in the first half of the reporting period helped the Group’s bunkering business record a significant increase in profitability. The Group’s port and shipping operations gained from a depreciated rupee.

Balendra noted that despite the macroeconomic interruptions, the consumer foods businesses recorded strong volume recovery in the first half of the year, only to respond negatively to heightened inflation and price increases in the second half of the year, affecting consumer demand. Likewise, despite the challenging operating environment, the supermarket business recorded a strong performance, with same-store sales recording encouraging growth. Given the notable shortages in essential goods and other fast-moving items in the first half of the reporting period, the business proactively ramped up its direct sourcing strategy to bridge gaps and, more importantly, provide its customers with such products at the best possible value.

Through the volatility and uncertainty of the previous years, JKH maintains the belief in spurring positive change through challenges. So together with their partners, the Group launched the large scale ‘Cinnamon Life Integrated Resort’ project, which, despite the challenges of the reporting period, has moved closer to completion, an investment that the JKH chairman hopes will boost the Group’s prospects towards an upward trajectory of ‘re-rating’ of its performance from its already robust platform built over the years. It is to the strength and willingness of its internal teams that the Group stood tall to ensure the continuation of business momentum. The economic environment is easing, so they are coming together again to prepare, pre-empt, and navigate challenges successfully. Emerging from the lessons learned in the preceding year, JKH, as a cohesive group, is focused on the core mission of driving profitability in the future. Toward that goal, it will unite to drive productivity, manage costs, and actively seek new investment opportunities. The Group has pledged to actively buttress the nation’s economic revival through its landmark projects and economic activities across diverse sectors.

12. Nations Trust Bank

Nations Trust Bank had embarked on a unique journey in 2022. It had a destination and, at the end of the year, had successfully reached it. But that is not the whole story. The compelling part is how the Bank finished that journey with much endurance. NTB’s journey in 2022 was amid challenging macroeconomic conditions, but judicious planning and calculation helped it move through that journey successfully. In twelfth place in the Business Today TOP 40 corporate awards, Nations Trust Bank recorded a strong performance, supported by building resilience across its business verticals, risk management, a cautious and selective approach to lending, and continuation of its productivity and cost-saving initiatives.

CEO/Executive Director Hemantha Gunatilleke attributed NTB’s long-term view and focus to its emerging solid and agile at the end of a challenging period. Innovation, service excellence, teamwork, and prudent banking practices enabled the Bank to record the highest return on investment in the country’s banking sector.

According to Chairman Gihan Cooray, a returns-focused strategy impinging on risk management and capital optimization, combined with selective growth, proved a winning strategy driving profitability in 2022, when many of its peers in the industry recorded a decline in profits. Increased interest rates also helped the Bank record higher revenue. Of course, the Bank had to contend with the changes to the tax regime and an unprecedented impairment increase, which the Bank dealt with thanks to its farsighted strategy. Cost management was another success area for the Bank, which recorded a decline in the Cost to Income ratio for the seventh consecutive year.

Optimizing returns, balancing asset quality and liquidity will be the Bank’s priority areas in the year ahead, a formula that has been to its advantage as it navigated the challenges of 2022.

13. Cargills (Ceylon)

It’s been a value-creating journey for Cargills Ceylon, which prides its community engagement with farmers and many homegrown entrepreneurs as a defining business model that sets it apart. According to Louis Page, Chairman, the challenging operating environment of 2022/23 has reinforced the Group’s commitment to the Cargills community development philosophy. Emerging in thirteenth place in the Business Today TOP 40 corporate awards, Cargills Ceylon has stamped its presence among a large domestic base of suppliers, farmers, and consumers it calls partners, generating shared value by working closely with them while giving back to communities and supporting the country in its economic recovery.

Guided by the astute leadership of Deputy Chairman/CEO, Ranjit Page, who led the team in establishing the Cargills business model, the Group continued to invest in building markets across the country, expanding production capacity, strengthening distribution channels, and driving digitalization across business units. Expressing the core values of the Cargills business model he championed, Ranjit Page speaking at a World Bank forum on ‘Building effective Public-Private Partnerships’ had said, “Today we are more than a retailer, more than a manufacturer, we do more than buy, sell and produce. We build people and communities and take hope to where it is needed the most. Today we are proud that CSR is our BUSINESS”.

With business operations in retail, FMCG, dairy, convenience food, beverage, culinary and confectionery, distribution, restaurants, and real estate, the Group continued to make selective investments to grow the business during the reporting period. They focused on consolidating their strengths. Pruning expenses while productivity improvement across all business units and shared services was a prerequisite, and all those prudent decisions enabled the Group to maintain market leadership in their business segments and sustain growth in revenue and profitability amid the impact of rising input costs and operating expenses.

The Group’s engagement with the farming community has been an enduring one, which it continued throughout the reporting period, a relationship integral to its business model. Their engagement was especially vital in 2022/23 to help them improve their capacity and reduce the cost of production. The chemical fertilizer ban severely impacted the farming community. Page said that the Group had increased the local sourcing capabilities and support to local MSMEs during the year. They are tremendously proud of their honorable role of being one of the most significant contributors to the economy and remain the single most prominent collector of fruits, vegetables, and fresh milk in Sri Lanka, with their purchases alone generating a direct income of 15.8 billion rupees for the local farming communities during the year under review. While adding value to local production, the Group continued to support capacity-building initiatives of the farming community. It reinvested back into the community through its homegrown fund, providing 25 million rupees of scholarships to children of the farming community during the reporting period under the initiative.

Commenting on sector performance, Imtiaz Abdul Wahid, Group Managing Director, said that the vicissitudes of the reporting period, such as high interest rates, rising expenditure and cost of inputs and production, and import restrictions, impacted the sectors in various ways. However, the Management devised strategies to circumvent the downsides to ensure the continuity of the Group’s business segments.

Consumer being king, Wahid said that they did their utmost to curtail the impact of the high cost of living. To make their products affordable to the consumer, the Management has taken numerous measures to improve productivity across all businesses and shared services. The focus has been to drive their strengths, reengineer processes, improve capacity utilization, rationalize unproductive assets, streamline logistics and distribution, and digitalize back-end operations.

In addition to productivity-enhancing measures within the Group, the Management has also invested in strengthening its partners, such as the dairy and agriculture farmers connected to the Group in business. Cognizant that the farming community has faced many setbacks during the economic crisis, impacting their productivity and incomes, the Group has invested resources in agriculture and dairy development to increase food production and drive down prices. Through these efforts, the Management is confident of reducing the cost to the consumer and improving profitability during the year ahead.

14. Ceylon Beverage Holdings

In a challenging financial year, Ceylon Beverage Holdings, in fourteenth place in the Business Today TOP 40 corporate awards, states that they faced adversities with unwavering determination where effective Management and planning were pivotal in ensuring uninterrupted production, distribution, and sales.

Commenting on the Group’s results, which posted growth in turnover and post-tax profits, Chairman D A Cabraal said that prompted by price increases in commodities, imports, fuel, freight rates, and taxes, the Group had to implement multiple price increases during the year under review leading to stagnant sales volumes in the second half of the year. That drawback, however, eased as the country saw inflation reducing towards the latter part of the year, although Cabraal stated that consumer spending on their beverages remained constrained by price concerns.

Cabraal revealed that while the Group has made encouraging progress in expanding its market reach, they have adopted a fresh approach to structuring the business for further growth. In the meantime, he stressed the need to address bureaucratic obstacles facing exporters and support the diversification of its export portfolio. The push on portfolio expansion resulted in the introducing of three new products to the market during the 2022/23 financial year.

Meanwhile, Rajiv Meewakkala, Chief Executive Officer, said that the Group persistently pursued driving category growth through innovation. The organization is rapidly building the capability of co-existing two value chains. One built on scale and efficiency, and the other on the ability to handle smaller, more innovative product lines. However, he lamented the impact of tax increases and new taxes on the legitimate industry, which is threatened by the rise of the illegal sector as price increases make it unaffordable to consumers. At the same time, the limited number of licensed stores across the country is a barrier to more people accessing legal outlets. However, he lauded the government policy to grant licenses to supermarkets and Tourist Board-approved establishments as a step forward in curtailing the illicit sector, increasing the tax net for the government, and creating business opportunities for SMEs in the tourism and hospitality business. The Group’s subsidiary, Lion Brewery’s international business, had recorded exceptional growth and resilience throughout the 2022/23 financial year, demonstrating its ability to adapt and overcome challenges, said Meewakkala.

While the Group expects the new financial year to be challenging with excise increases, it is pinning its hopes on the growth in tourism and its positive impact on the economy.

15. National Development Bank

With years of experience, the National Development Bank exuded confidence, energy and flexibility to change in consonance with the times with ease, thereby continuing its impactful role among a host of stakeholders. In 2022, NDB realigned itself to meet the challenges under new circumstances and opened the doors to its customers to serve them with dexterity in a new landscape.

In fifteenth place in the Business Today TOP 40 corporate awards, NDB prizes its role as a market intermediary supporting the country’s economic revival, embracing the multifaceted nature that water embodies. It was a challenging year for NDB and its customers facing repayment pressure. Yet NDB became a source that customers could depend on, reaching out to them and demonstrating their commitment to sustaining their interests through proactive and ongoing engagement, debt restructuring, and advisory. Chairman Sriyan Cooray echoes the ethos of purposefully serving their stakeholders, moving steadily through agility to carve a path that takes it to its goal.

If any bank has its roots in development banking, then it’s unequivocally NDB that has remained a constant pillar of strength to the country’s SME sector. And so, rising to serve in a challenging period came naturally, as the Bank offered a unique value proposition to the SME sector, helping them diversify their portfolio while supporting the country’s revival and growth. Through the Bank’s business unit, officers maintained interactions with customers in various parts of the country, helping the Bank to identify the most vulnerable points, advice, and devise customized plans to ensure that businesses remained afloat. The remedial management teams set up in the regions were a unique proposition to deal with a vulnerable group whose members liaised with the central Remedial Management Unit to reschedule and restructure portfolios. At the end of the 2022 reporting period, 16.6 billion of the SME portfolio received offers of concessions and moratoria.

Like others in the industry, NDB had to endure the troubles accompanying the foreign currency crunch. But NDB rose to the occasion, stepping up efforts to facilitate the importation of essential commodities required to foster daily life, such as medicines, food, and fuel. The Bank is mindful of the role it can play in economic revival through a well-thought-out delivery of solutions addressing the country’s increasing poverty, thereby playing its part in enabling and driving the country towards a future trajectory of growth and prosperity.

As a Bank closely working with Sri Lankan entrepreneurs and supporting their endeavors, Cooray said that NDB works through a unique program designed by them to continuously help the country’s exporters and entrepreneurs through a holistic value proposition which includes advisory, market access, ecosystem partnerships, and financial and non-financial assistance.

Elaborating, Dimantha Seneviratne, Director/Chief Executive Officer, explained that amid a complex operating landscape, NDB adopted a strategy to preserve the portfolio quality, manage costs, and manage the Bank’s rupee and foreign currency liquidity levels, focus on its lending strategy, and digitalization. Managing risks, he said, was integral to their response to the unfolding scenario, as it was exerting considerable pressure on their operating model and financial performance. NDB, he said, sought to strengthen its defenses by improving its risk and control environments. Accordingly, he said the Bank recalibrated its risk exposures in line with the shifts in the risk landscape while its risk appetite frameworks were made more stringent. Further, NDB strategically focused on nurturing a culture of risk ownership and accountability through ongoing awareness creation and training programs across the Bank. Credit, market, and liquidity risks emerged as critical exposures. Hence, the leadership team worked closely with relevant groups to close the gaps.

As NDB’s journey with its stakeholders continues, according to Cooray, in the short-term, the Bank foresees macroeconomic challenges bearing upon performance, mainly from rising impairments from a deterioration of credit quality and investments in government securities. At the time of reporting, Cooray said that a speedy deal with IMF and funding is a much-anticipated relief, without which the country’s return to normalcy would be interrupted.

16. LB Finance

In a financial year abounding with multiple outcomes, LB Finance, sixteenth in the Business Today TOP 40 corporate awards, is celebrating its performance, its profitability exceeding its budgeted target. LBF describes the year under review as ‘making the right move at the right time’, relying on foresight, strong analytical skills, and a perfectly formulated execution strategy to drive results, which it managed to deliver in 2022/23. Hence, the nature of the response to the macroeconomic challenges helped them protect the business and the interest of their customers and stakeholders, said Chairman Dimuth Prasanna. They acted urgently and focused on informed risk decisions supported by stricter governance and oversight across all risk defenses. Simultaneously, the Board critically assessed its strategy’s effectiveness and capacity to create a conducive environment for growth, development, and prosperity, notwithstanding challenges. From that process, LBF refreshed the current strategy under four key themes – business, digital, people, and sustainability. That step reflects a complete turnaround the Group intends to take to build a resilient, dynamic, and future-oriented business that will serve as a blueprint for the entire NBFI sector.

Evaluating and assessing a range of possibilities to execute the right strategy at the right time, with experience empowering those in charge to hit the right note, the Management decided to refrain from repricing their finance books, deeming it counterproductive rather than beneficial, instead focusing on alternative strategies to reduce the concentration risk exposure on long-term assets. Managing Director Sumith Adhihetty said they started promoting refinance facilities mainly for existing customers’ short-term working capital needs and that, too, only among customers presenting a high credit score. They also revised internal loan-to-value ratios and tightened customer due diligence to realign lending priorities towards high-quality new exposures.

LBF simultaneously focused on recoveries. Following the conclusion of all government-led moratoria by the end of December 2022, LBF had further intensified recovery action for moratoria customers, with satisfactory outcomes. As a culmination of their disciplined lending approaches and substantial recoveries, LBF’s auto finance portfolio declined overall compared to the previous year, thus containing portfolio exposures within Board-approved risk benchmarks.

LBF is optimistic about the future as the country gradually recovers and is banking on the experience gained from navigating a challenging reporting period to deliver positive results.

17. Seylan Bank

Seylan Bank’s guiding principle in 2022 was in sync with creating enduring value, in seventeenth place in the Business Today TOP 40 corporates awards. It was a journey undertaken under unique circumstances where ‘team Seylan’ was powered by human ingenuity and innovation. It was a bank in sync with change, abreast with the challenges and disruptions, which Chairman Ravi Dias says the Bank proactively foresaw to forestall any severe fallout. Having navigated two challenging pandemic-driven years before, the maturity and the experience those episodes had given the Bank helped it survive the unique set of circumstances in the 2022 reporting period. Notwithstanding the spike in interest rates and the pressure on capital, liquidity, and asset quality brought about by the economic crisis, the Bank’s financial performance is a testament to its capability.

Amid the turbulence, the Bank was determined to ensure safe business continuity, with due attention to profitability, growth momentum, and adequate liquidity. The focus was on stability through diligent provisioning and sufficient liquidity while achieving profitability through operational efficiency and sound risk management. And that strategy paid off. Supported by the ‘back to basics’ program of consolidation undertaken through our new strategic plan put into force in 2021 and the agility to adapt to the drastic changes taking place in the external environment, Seylan Bank came triumphantly on top, recording the highest profit in the history of the Bank. Kapila Ariyaratne was the Bank’s director/ CEO during the reporting period. According to him, having followed a prudent approach to staying afloat and maintaining customers’ and stakeholders’ confidence, the Bank recorded higher pre and post-tax profits compared to 2021. Despite declining business volume in 2022, rising interest rates helped the Bank increase revenue from net fees and commissions.

Through all these scenarios, the Bank, said Ariyaratne, adopted an extra-cautious approach to possible future risks, thereby placing Seylan Bank on a better footing when the economy gradually experiences a reversal. He explained that there is a story behind the reported numbers. The story of a Bank made future-ready, setting it up for a swift rise in performance in step with the desired economic resurgence.

18. Lion Brewery (Ceylon)

Lion Brewery Ceylon pursued a purposeful journey in a much chequered year of operations. The Company took the bull by the horns and confronted the reality of growing its business to strength. The Company enthusiastically relaunched the Lion brand to suit a modern market to drive future growth. Thus, Lion Brewery, eighteenth in the Business Today TOP 40 corporate awards successfully expanded its portfolio and witnessed increased revenue and profitability. It did all this while the operating environment was seething from cost escalations, higher input expenditure from a devalued currency, rising commodity prices, interest rates, freight costs, and taxes. Lion Brewery Ceylon, led by Chairman Amal Cabraal, successfully navigated a much demanding reporting period of 2022/23 with minimum disruptions.

Chief Executive Officer Rajiv Meewakkala said high-interest costs and increased working capital stress on cash flow impacted their bottom line. Price increases of beverages throughout the year became usual as expenditure arose simultaneously. Naturally, price increases affected people’s buying power and gave more leeway to the illegal sector to hold sway among those who could not afford their beverages under new prices. He welcomed the initiative by the Ministry of Finance and the Excise Department to introduce tax stamps to alcoholic drinks to curtail illicit products.

Meewakkala disclosed the exceptional growth in Lion Brewery’s international business throughout the 2022/23 financial year, demonstrating its ability to adapt and overcome challenges. The results have been good for the Company despite multiple challenges that the industry confronted in a turbulent price-sensitive environment, achieving remarkable revenue growth in USD and volume compared to the previous year, attributable to strategic initiatives and targeted expansions in key markets.

Cabraal meanwhile revealed that while the Company has made encouraging progress in expanding its market reach, they have adopted a fresh approach to structuring the business for further growth while urging the authorities to address bureaucratic obstacles hampering portfolio diversification efforts, such as delays in excise duty refunds confronting the Company’s export operations leading to high-interest costs for the Company in conducting international business. He also pointed to the importance of clearing hindrances to exporters from complex regulations and administrative delays governing tax exemptions on raw materials for exports, making it difficult to price their products in the global market competitively.

CEO Meewakkala expects a somewhat turbulent future. As the country shows positive signs of heading towards economic recovery, there is much the authorities must do to enforce policy reforms overlooked for many years. He stressed that with an estimated three percent contraction of the national economy for the forthcoming year in the backdrop of a significantly inflated cost base, fiscal consolidation will continue to dampen consumer spending and create an uncertain prospect over the next few months. Further increases in excise will push up the prices of the legal sector and create a thriving illicit market, warned Meewakkala.

19. Aitken Spence

A tripartite cognition – a combination of mental prowess, experience, and perceptiveness were the triple elements that allowed Aitken Spence to remain calm while caught up in the storms of the reporting period. It was a phase that brought maturity to this diversified conglomerate that asserts its confidence building from its experience to navigate the future and the future of unknown events. It’s a future they will look at vigilantly while open to seizing the opportunities beckoning them under any circumstances.

Chairman Harry Jayawardena is naturally happy, having rendered his strong leadership to ensure that Aitken Spence comes out stronger. Jayawardena said that their strategy needed to be agile and responsive to the changing dynamics of the country’s economic landscape to deliver value to our key stakeholders.

Aitken Spence, the diversified conglomerate, is in nineteenth place in the Business Today TOP 40 corporate awards. In the 2022/23 reporting period, the various business sectors in the Group, namely tourism, maritime and freight logistics, strategic investment, and services got pitted against the turbulent external environment, each responding to the vicissitudes differently, despite which the Group recorded a strong performance demonstrating its ability to withstand the impact of interest rate and tax increases, and the volatility of exchange rates, to produce remarkable post-tax profits, a testament to the Group’s resilience.

The Group’s strategic focus on geographical diversification had yielded fruitful results, with the overseas sector significantly contributing to the Group’s pretax profit, pointed out Dr. Parakrama Dissanayake, Deputy Chairman and Managing Director.

The Group’s maritime and freight logistics sector contributed most to overall profitability, followed by the tourism, strategic investments, and services sectors. The robust growth of the maritime and freight logistics sector played a crucial role in supporting the overall performance of the Group. Contributions from apparel manufacturing and hotels in the Maldives to performance were significant.

As a dynamic and diverse corporation, Aitken Spence is constantly on its feet, looking to grow. In the future, that is what it intends to do: identify growth opportunities that align with its strategic objectives while carefully evaluating options based on industry relevance, potential returns, sustainability, and ability to create value. Even in the past year, the Group undertook a diligent approach to growth, thereby ensuring that any expansion initiatives were well-suited to them and had the potential to contribute positively to overall success.

As for the country’s future outlook, they are cognizant of the opportunities its various business sectors stand to benefit through the government’s development agenda for Sri Lanka. Dissanayake said that Sri Lanka’s quest to become a maritime and logistics hub is an area of interest to the Group, given its leading position in the country’s logistics sector. He also underscored the importance of rebranding Sri Lanka to position it as a safe and attractive travel destination. Meanwhile, he said the Group’s geographical and industrial expansion will continue in line with its stated goals of establishing a presence in new countries and new industry segments.

On an optimistic note, Jayawardena, looking to harness growth and expansion opportunities from a recovered Sri Lanka, said that the Group would explore options in the markets it operates and in the surrounding regions while exploring synergies across its wider Group, sister companies, and partners to harness greater efficiencies and value to stakeholders. He said the Group will continue re-strategizing its businesses with resilience and agility to suit the ever-changing market conditions and economic landscape. Adding to Dissanayake’s sentiments, Jayawardena said that the Group would join the country’s journey to becoming a maritime hub given its expertise in the area, seizing the potential and helping unlock new trade and economic growth opportunities. With a substantial presence in hospitality, Jayawardena called for a revamping of the industry, a re-examination of strategies, business, and operating models, incorporating the ever-changing needs of the sector, a focus on making tourism and hospitality relevant for future consumers, where sustainability, technology, authenticity, and personalization are core.

20. C T Holdings

With a commitment to serve communities across Sri Lanka, C T Holdings, a diversified Group with retail and wholesale distribution businesses, FMCG, restaurants, real estate, entertainment, and banking and financial services, is in twentieth place in the Business Today TOP 40 corporate awards. C T Holdings is led by Chairman Louis Page, who is ably assisted by Deputy Chairman/Managing Director, Executive Director Ranjit Page, the strategist behind transforming the Group’s business model and expanding its portfolio into multiple sectors.

C T Holdings values its unique relationship with its partners, which includes farming communities, their involvement ensured that they had a continued market for their supplies, thereby sustaining their livelihoods and ensuring families survived through a difficult period. In going the extra mile in a challenging situation to keep their partners vulnerable to shocks, the Group reaped the benefits of its outreach in revenue and profitability growth.

Through its diversified business sectors, C T Holdings has established a name as a Group buttressing community development, a journey of growing with their partners, creating shared value, giving back to their communities, and supporting the national economic recovery efforts. During the 2022/23 year of review, Page said, the Group continued to invest in building markets across the country, expanding production capacity, strengthening distribution channels, and driving digitalization across business units.

Page said that the Group has been selective in investing in business growth while consolidating its strengths, rationalizing expenditure, and improving productivity across all business units and shared services. As a result of this focus, he said the Group has managed to maintain market leadership in its categories and sustain margins despite the impact of rising input costs and operating expenses.

The retail sector, which is the most significant component of the Group by turnover, maintained its market leadership while continuing to deliver on its promise of value and convenience to the consumer. The restaurant business continued the growth trend of last year despite the turbulent macro environment. The Group’s banking and financial services sector also showed positive results, while the revision of rental rates pushed up revenue in the real estate sector. The Group’s FMCG sector, consisting of dairy, convenience food, beverages, culinary, and confectionery, recorded topline growth boosted by selective price increases.

Commenting on the Group’s journey into the future as the country recovers, Page had confidence in the resilience of the Sri Lankan economy and her people. He said C T Holdings will continue to make investments on a selective basis, uplift partners, and reduce the cost for the consumer while growing its reach and presence within the local market and beyond. Developing the capacity of local raw material suppliers and agricultural producers is a key focus area of the Group to support the country’s long-term food security goals and reduce Sri Lanka’s import dependence. As they navigate the future, the Group will make selective investments to grow their footprint within the retail and restaurant sectors, add capacity to their manufacturing business, and strengthen their supply chains.

21. Royal Ceramics Lanka

Leading Sri Lankan tile manufacturer Royal Ceramics Lanka is twenty-first in the Business Today TOP 40 corporate awards. For the manufacturer of Rocell and LANKATILES, the 2022/23 financial year was an exception, said Chairman Harsha Amarasekera. It was a good year of business at one point. In the face of import restrictions, Royal Ceramics leveraged its offering as demand increased, leading to exceptional profits. However, sales slowed down amid a slackened construction industry.

In general, the Group had to respond to the changes in the external environment by reorienting stakeholder interest, as the country’s situation negatively impacted many. The economic crisis’s impact bore upon individuals and businesses to varying degrees. However, the management had to continuously evaluate and determine how best to balance the needs of customers, employees, business partners, and investors.

Reflecting on the financial year, Aravinda Perera, Managing Director, reviewed it under two scenarios: a volatile and uncertain first half and an encouraging second half demonstrating improvements to the country’s socioeconomic outlook. Monetary and fiscal policy tightening to address the economic issues exacerbated by the pandemic was a significant move to accelerate recovery. However, as many sectors felt the brunt of the upheaval, the Group’s fortunes too changed, experiencing a first quarter of excess demand, followed by a slump as changing interest rates and soaring construction costs led to a slowdown in the construction industry. The Group set off the decline in some sectors against the revenue growth in others, especially the decline in demand in the tile sector. The impact of inflation was seen across all categories as distribution, administration, and additional operating costs increased. That resulted in the Group’s pre and post-tax profitability taking a hit in the reporting period. Amarasekera stressed the need to navigate Royal Ceramics into a growth trajectory as the country has begun a journey toward recovery and normalcy. Their future strategy is to drive growth by developing export markets. Meanwhile, the management hopes the construction industry, which has been showing a modicum of recovery, will gather momentum in the new reporting period. Given the impact of cost escalations on the bottom line, in the future, the management will focus on increasing efficiencies in manufacturing and supply chain management to reduce the cost of production and allow them to compete effectively in the market.

22. CIC Holdings

CIC Holdings Chairman Harsha Amarasekera, discussing the Group’s performance in the 2022/23 reporting year, was ecstatic, describing it as “exceptional”, at a time when driven by an economic downturn, when everyone and everything else reflected the same sentiments, the CIC Group proved otherwise, recording its best performance to date. In twenty-second place in the Business Today TOP 40 corporate awards, CIC’s growth is described as the fastest in over a decade, recording an all-time high Group revenue and a post-tax profit not generated in the six decades of its history. The healthy top-line improvements reported in agriculture and crop solutions, industrial, livestock, health, and personal care sectors contributed to its performance.

What makes the results praiseworthy is the environment in which it was achieved, an environment beset with a significant increase in finance costs, which each sector absorbed. At the same time, the results are not surprising to the management given that all the sectors had worked according to meticulously engineered and coordinated action plans implemented in the past four strategic cycles to strengthen and consolidate the Group’s core positions in response to a changing external environment. Moreover, Amarasekera attributed the Group’s success in tumultuous times to its sound corporate governance, led by the Board and respective management teams that frequently met during the reporting period to conduct ‘deep dive’ reviews of divisional risks to fine-tune strategies according to the prevailing volatility in the external environment and its impact on the Group’s risk landscape.

Group CEO Aroshan Seresinhe was similarly celebrating the stellar results in the financial year, which he attributed to the resilience and perseverance of their teams. Envisioning the future for the Group, the management took stock of multiple realities. Identifying its current position was vital. From that standpoint, the management focused on mapping what it should do to reach where it wants to be by 2028. Subsequently, the management introduced a well-thought-out strategy to take the CIC Group to the next level through conscious reassessment, resizing, and reinvention of all business segments within each sector to harmonize them with the Group’s strategic objectives. Some important takeaways from their future strategy include investing in agri-technology and focusing on building scale across their export-oriented businesses while looking at opportunities to expand the global footprint of the rice export operation. R&D-led innovation will become pivotal in their export growth strategy in the coming years.

23. Hemas Holdings

When everything in the operating environment seemed insurmountable, diversified conglomerate Hemas Holdings saw a world of possibilities, the possibility of serving their stakeholders and remaining steadfast to their customer commitments, of continuing their pledge to ensure their wellbeing. In 2022/23, Hemas Holdings, with a portfolio in home and personal care, healthcare, pharmaceuticals, hospitals, mobility, consumer brands, and learning segments, forged ahead on its mission of empowering communities and enriching and empowering lives across the country.

In the twenty-third position in the Business Today TOP 40 corporate awards, Hemas, led by Chairman Husein Esufally, has sustained and grown despite a challenging operating environment, a growth he attributes to the resilience of its extensive portfolio, the strength of its brands and business relationships, and the agility and the commitment of its people.

CEO Kasturi Wilson said customer-centric decision-making was central, resulting in improved market share across the sectors and revenue growth. Importantly, adequate liquidity achieved from prudent cash flow management helped the Group maintain a healthy financial position, which allowed it to sail through the turbulence of the reporting period. Thus, all the sectors of the Group managed to grow in revenue despite rising costs, forex issues, and currency depreciation. Working in segments where customers are crucial to driving growth, the management was cognizant of the impact of passing the burden of increasing input costs onto the consumers and, hence, in response, invested in efficiency improvement initiatives.

A testament to the Group’s focused expansion agenda was the commencement of commercial production at its pharmaceutical manufacturing plant, allowing it to offer several new affordable medicines. As the Group pursues the future amid optimistic economic headwinds, it remains committed to embracing the world of endless possibilities, including aspiring inorganic growth opportunities in the consumer and healthcare sectors and international expansion. The Group will also continue to drive internal reforms to remain agile and efficient.

24. Central Finance Company

Working on a strategy to curtail its lending portfolio in a volatile environment, Central Finance Company focused on recoveries. This strategy guided it through a distressed NBFI sector to emerge with a solid liquidity base and sustained profitability. In twenty-fourth place in the Business Today TOP 40 corporate awards, Central Finance Company was cognizant of maintaining its status quo, of applying prudent measures to sustain stakeholder and customer confidence in their business, and, in doing so, reduce non-performing loans inventory and ratio, impairment and other credit losses to retain substantial capital, deploying the surplus to serve corporates in their time of need with working capital loans and short term investment, a prudent proposition that earned the Group a windfall in terms of income driven by higher interest rates.

Led by Chairman Asite Talwatte and Managing Director Eranjith Wijenaike, the Group’s pre and post-tax profits recorded increases despite substantial taxes and the volatilities in the operating environment, which the two leaders attribute to their reoriented strategy of focusing on recoveries over lending expansion. However, CF did intervene in offering financial options to low-risk sectors and customers as they grappled with unexpected events.

The Group’s subsidiary, Central Industries recorded revenue and post-tax profit despite the downturn in the construction industry and restrictions to securing material, achieved through competitive product pricing and higher operational efficiencies leading to decreased production costs. Limited new business opportunities led to a slowdown in business for CF Insurance Brokers, but they benefited from interest income generated from investments in corporate debt securities. Timely repricing of interest-earning assets and effective management of funding costs helped its financial services arm, Nations Trust Bank deliver the highest-ever profit in its operating history. Amid decreased production volumes and increased production costs, the Tea Smallholder Factories recorded post-tax gains from higher export earnings supported by a depreciated rupee.

While trusting the government to effectively maneuver the economic recovery efforts to usher in stability to the financial services sector, the Group is moving ahead confidently, protected, and strengthened by its risk and governance frameworks.

25. Ceylinco Insurance

Proving its strength as a seasoned operator in the domestic business landscape, Ceylinco Insurance, with business in insurance, power generation, and education, passionately discharged its responsibilities towards its customers and stakeholders led by decades of strength that have equipped it to soar above the winds to guide and support people and communities.

In twenty-fifth place in the Business Today TOP 40 corporate awards, Ceylinco Insurance was on the people’s side, basing its decisions on the impact the crisis bore on each sector and their impact on stakeholders. Determination allowed them to face the risks and the volatilities. To mitigate the effects, they adopted prudent management practices and a visionary approach that gave attractive returns in pre and post-tax profit growth, surpassing expectations.

It was a testing period for Ceylinco, according to Executive Chairman/CEO Ajith Gunawardena, testing its courage to weather the winds of change that blew unexpectedly and overwhelmingly. It was when a government-imposed ban on vehicle imports hit its general insurance sector. It was when its power generation sector had to contend with a breach of payment obligations by the State-sector purchaser. Driven by restrictions to movement amid fuel shortages, its education sector had to switch to online options yet again. Yet, despite multiple impacts on performance, Deputy Chairman, R Renganathan said Ceylinco stood gracefully to the evolving challenges, harnessing decades of strength from conducting excellent business in life insurance in Sri Lanka to record remarkable performance in each of its sectors.

But behind the results were powerful hands that came together to uphold and uplift the Group and deliver it safely through the turbulence. Thus, efficient and agile leadership drove results across all sectors, leadership guided by a sound corporate governance framework that was sensitive to the needs of its stakeholders and formulated appropriate responses to deliver value to their stakeholders. Regarding its insurance business, Patrick Alwis, Executive Chairman/CEO of Ceylinco General Insurance, said its overall growth was the highest recorded in a decade while the Company retained its market leadership.

Ceylinco has consolidated its domestic leadership through foreign market expansions through partnerships in the UAE, Bahrain, Oman, Qatar, and Saudi Arabia, a subsidiary in the Maldives, an associate company in Nepal, and a strategic alliance in Mauritius, which have been growing every year. Meanwhile, the Group hopes to leverage the increasing demand for renewable energy as the emerging crisis during the economic turbulence brought its value to the fore. And so, the management remains hopeful for the future while continuing its commitments towards its stakeholders who have placed their confidence in the Group, to whom, amid an unstable atmosphere, Ceylinco Insurance became their anchor.

26. DFCC Bank

It was a year spent defining DFCC’s sustainability strategy, defining processes and responsibilities, and finalizing collaboration, empowerment, innovation, inclusion, and digitization plans. In the twenty-sixth position in the Business Today TOP 40 corporate awards, DFCC Chairman Jegan Durairatnam describes 2022 as a quest to maintain a delicate balance in the Bank’s approach. One was to take advantage of emerging opportunities to drive value creation in the short to mid-term. The other was to continue supporting those negatively impacted by the country’s economic crisis while maintaining its first strategy. DFCC’s argument is straightforward. To help those in need, first, the Bank must be strong financially. It did just that and, in turn, allowed it to reach out to those in need, thereby assisting in the country’s economic recovery. Having struck that balance in the reporting year, the Bank continues using the same stance to define its future role.

Working with their customers closely, CEO Thimal Perera said that the Bank helped them manage their cash flows, restructure loans, and offered tenure extensions, moratoriums, grace periods, and additional funding despite the distressed situation. The Bank’s priority areas are laudable, including enabling financial inclusion and promoting women’s empowerment as a pathway to economic development. Toward that goal, DFCC encouraged women’s entrepreneurship through access to loans for small businesses. The Bank’s approach here is to help create an ecosystem with the proper knowledge so that more women will take up the challenge of heading their businesses.

The SME sector is another vital area that DFCC operates in, an area it deems critical to sustain, so they become important partakers in the country’s economic recovery. DFCC has disbursed a part of a US$ 150 million funding from Development Finance Corporation, USA, for women’s banking and low-end SMEs. The Bank’s SME outreach included advice and guidance on corporate governance, providing knowledge to improve and take their business to the next level. The Bank noted that SMEs operating in the export sphere related to essential food items and pharmaceuticals had reaped positive outcomes during the challenging period. However, import restrictions on raw materials and machinery hampered manufacturers. The ban on chemical fertilizer impacted agriculture sector operations while the forex crunch impeded SME importers.

For DFCC, among the plethora of challenges in the reporting period, the most significant and powerful force was the changes in market interest rates. As rising interest rates threatened business continuity impeded by repayment issues, its consequences came to bear upon the Bank as its loan book expanded with increasing non-performing loans. That led the Bank to intervene to help customers restructure loans while offering concessions.

Interestingly, DFCC has once again mobilized War Room meetings to navigate the difficulties and introduce responses in the near term, eventually becoming the base for sustained action towards achieving strategic priorities in the medium to long term. The Bank is on a growth pursuit, trusting its resilience and structure to spur growth. Of course, its path will be guided by caution and prudence, given that the situation is still evolving. The Bank will move forward, adjusting in tandem with the ground reality, using innovation and its resources to drive its forward march. DFCC will be formulating a new medium-term plan in which a critical long-term strategic objective will remain steadfast – the pursuit of becoming the most customer-centric Bank that will be data-driven and digitally enabled.

27. Sri Lanka Telecom

In a testament to the national information and communication technology solutions provider’s transformative journey that began in 2020, Sri Lanka Telecom recorded resounding growth of over one hundred billion rupees in 2022, a result driven by its focus on operational efficiency through a consolidated business structure, optimization of facilities and cost efficiencies and unified brand marketing.

It was a year of obstacles and opportunities, said Rohan Fernando, who was the SLT Group Chairman in 2022. They tested the Group’s strength and resilience, setting them to change course to prepare them for the future. Equipment cost due to forex disparities was one of the biggest challenges for the Group. Despite this, the SLT Group continued its business growth journey, pursuing the nation’s shift towards realizing a digital economy and continuing technological advancement.

To enable a smart nation, SLT focused on building the necessary infrastructure with a fiber network of 65,000 kilometers across the island, unifying operations in delivering fixed and mobile services, and offering a unified SLT-MOBITEL Group brand. A focus on agile organizational processes and an innovative culture supported this move. In 2022, SLT strengthened its R&D center, ‘The Embryo’, while building partnerships to offer new services to customers via digital platforms utilizing cutting-edge technologies such as Machine Learning/Artificial Intelligence, Data Analytics, Robotic Process Automation, Metaverse, and other emerging technologies.

A key feature in 2022 was SLT’s transformational role from a telco to a techno company. According to CEO Janaka Abeysinghe, it is a new role that has enabled it to offer new services, the virtualization of its networks, and the process of cloudification. Further, in expanding its digital infrastructure, SLT will augment its fiber and 4G LTE networks, data centers, and the multi-cloud environment, vital to enabling and delivering digital services. SLT has also invested in increasing the capacity of global internet and submarine cables. In supporting customer digital initiatives, SLT has strengthened in-house capabilities by establishing a broader local and international digital service partner ecosystem. Further, it developed solutions based on IOT and analytics for multiple industry verticals to transform traditional processes into smart operations.

Quality, dedication, and resilience define SLT’s workforce entrusted with delivering offerings to a large customer base whose needs the management met during a challenging time, ensuring that the country’s telecommunication leader retained top talent. As a well-positioned entity in the industry, SLT’s plans will focus on augmenting the shift to digital platforms. As it demonstrated its vitality in a challenging 2022 by continuing to offer state-of-the-art products and services, SLT is ready to face any challenge and turn it into an opportunity. Foremost of its plans is to lead the cause to narrow the digital divide in the country and usher in digital inclusion throughout Sri Lanka.

28. Haycarb

Undertaking to give the best to the world, activated carbon manufacturer Haycarb is in the twenty-eighth position in the Business Today TOP 40 corporate awards. Sri Lanka’s leading business entity in the coconut-activated carbon industry with a global footprint spanning Thailand and Indonesia and offices and warehouses in the USA, UK, Germany, Australia, Thailand, and Indonesia marks fifty years of manufacturing and technical excellence, innovation, and customer-centric solutions.

The Group prides itself on being an impactful business through exports and engaging with the SME sector. Its geographical spread bolsters developing and emerging market economies. It became a vital crutch for Sri Lanka through the economic crisis, where forex shortage was a significant issue, earning US$89.54 million through exports. Its business supports the livelihoods of over 200 micro-entrepreneurs in Sri Lanka through coconut shell and coconut shell charcoal procurement. Their intervention includes technical and financial assistance to small-scale suppliers to convert coconut shells to charcoal using the Company’s technology.

Chairman Mohan Pandithage and Managing Director Rajitha Kariyawasan are hailing the year under review, 2022/23, a period that brought about unprecedented challenges locally and globally, despite which, for the fifth consecutive year, the Group recorded the highest ever pre and post-tax earnings.

The operating environment in Sri Lanka during the reporting period was beset with unrest, accompanied by rising global interest rates, resulting in increased cost of borrowing while customers adopted a cautious approach to purchasing in the second half of the year. There was a curtailment in working capital expansion driven by high borrowing costs, excess stock stemming from the pandemic, and the global environment’s uncertainties. Amid multiple scenarios, the balance sheet reflects how the Group strengthened liquidity and its financial position. With a portfolio of over 1,500 products, the Group maintained consistent growth goals amid the unfolding events at home and abroad. It continued the expansion of value-added activated carbon products, developing new markets for them while increasing penetration in existing markets.

While the general macroeconomic outlook borders on moderate projections, Haycarb’s primary business holds much potential, with growth projections for activated carbon remaining strong. The management has its plans cut out to pursue new markets and customers, seek collaborative innovation, operational excellence, supply chain partnerships, and steer sustainability.

29. Dipped Products

Because they rose above the challenges to expand their offerings, the year under review was encouraging for Dipped Products. The manufacturer of natural and synthetic-latex-based household and industrial gloves is twenty-ninth in the Business Today TOP 40 corporate awards. Protective handwear being the primary business, the Group is also in the tea and rubber manufac t u ring business. Notwithstanding the cost appreciations and margin pressure from the country’s macroeconomic circumstances, the Group delivered a record-breaking financial performance during the year supported by solid performances of the hand protection and plantation sectors, the highest revenue and post-tax profit in its operating history.

Chairman Mohan Pandithage and Managing Director Pushpika Janadheera attribute the Group’s outstanding performance to its diversified product portfolio of value-added product categories and sustained emphasis on driving cost optimization and operational efficiencies.

The strategic focus of the Group’s hand protection sector in 2022/23 included export market diversification and product innovation. Marketing operations commenced in France and Poland, strengthening its presence in the European Union and increasing its global presence. They appointed new agents in emerging markets to explore growth opportunities in Oceania, Asia, the Middle East, Africa, and South America. Meanwhile, the sector acquired 42 new customers in the reporting year due to the increased allocation of sales resources in significant markets. The management invested in a state-of-the-art manufacturing facility for precision-engineered sports gloves to strengthen its position in high-value niche product segments and take advantage of emerging opportunities in the market. A research and innovation center was established and introduced 19 new products to the market during the year.

The plantation sector also grappled with multiple scenarios of escalating production costs, labor, and fertilizer shortages, despite which its relentless focus on quality and sustainability allowed it to generate premium prices.

The management is upbeat about its prospects and is confident of growth, having prudently managed all processes during the reporting period to fortify its bottom line. Henceforth, they will aggressively pursue market expansion and diversification and expand capacity in high-value niche product segments. Innovation will drive its future trajectory, emphasizing developing sophisticated products that cater to emerging customer requirements.

30. Lanka Walltile

A solid financial position produced by strong performances in two previous years provided Lanka Walltile Group with the safety margins it required to steer a challenging 2022/23 reporting period. Ranked thirtieth in the Business Today TOP 40 corporate awards, Lanka Walltile had to contend with mixed market responses during the period, one with considerable demand for its products and another with a sharp decline. The Group has businesses in tile manufacturing, aluminium extrusion, and packaging.

Many were the operational challenges. Being in the lifestyle sector, the tile segment of the Group had to contend with the vicissitudes of the external environment. The business was a casualty of the construction industry’s slowdown, resulting in the demand for its products slipping sharply in addition to rising inflation, energy and fuel costs, supply chain disruptions, decreasing disposable incomes, and changing taxes and interest rates. At the same time, import restrictions hampered sourcing material from abroad for tile manufacturing.

Despite the headwinds, the Group managed to pull off post-tax profits.

Led by Chairman A M Weerasinghe and Managing Director Mahendra Jayasekera, the Group’s tile business experienced a resurgence in the face of import restrictions. However, it was affected by the shortage of raw materials due to import restrictions. The construction industry slowed down, hindered by the same reasons prevailing in the economy, which stepped back from pursuing projects, impacting the demand for tiles. Thus, the tile sector faced a risky environment. The stagnation in the construction industry also had a bearing on the Group’s aluminium business. A key challenge for the packaging sector was the cost of production, with the price of paper increasing exponentially during the crisis. Moreover, the economic downturn had impacted multiple sectors, such as the export ecosystem, which bore upon the packaging business. However, steered by judicious leadership and prudent management, the Group’s balance sheet remains healthy.

During the review period, the Group strengthened product and process innovation to maintain profit margins while aggressively pursuing export opportunities to sustain its growth momentum, a strategy that it will follow going forward, and given the gradual recovery of the economy, is hoping to expand, to exploit the opportunities in the export sector as domestic demand is likely to remain suppressed in the foreseeable future. Building a resilient balance sheet will continue, while the profitability of the Group will be sustained through a concerted effort to manage capital, minimizing expenditure and borrowings.

31. People’s Leasing and Finance

It was a defining year for People’s Leasing and Finance, and its Chairman, Pradeep Amirthanayagam, had never imagined that “unprecedented” would become mainstream once again to describe the mayhem that prevailed in the 2022/23 reporting period. However, when the management saw the signs, they shielded their business from disruptions. In thirty-first place in the Business Today TOP 40 corporate awards, People’s Leasing and Finance decided to steer their future operations, prioritizing credit risk management, liquidity, and cost control.

Based on the Group’s three priority areas, the management had adopted a selective lending strategy with limited opportunities for credit expansion in the face of escalating interest rates and inflation. According to CEO/General Manager Shamindra Marcelline, they fortified liquidity by first strengthening their liquidity risk parameters and portfolio management to minimize maturity mismatches between asset and liability portfolios while cutting back on long-term lending, which became crucial to their risk management strategy. As they stepped up efforts to curtail expenditure and adopted a cautious approach to lending, the impetus was directed towards recoveries in the reporting period, setting a hundred percent collection target, with extra measures introduced to strengthen the recovery governance framework and a new unit to improve supervisory oversight of ground-level recovery teams. Among the measures taken to roll out a seamless service to its customers while being sensitive to their travails, the management had decided not to reprice its finance leasing portfolio, instead offering a variable interest scheme as a measure of relief to customers grappling with rising interest rates. The management had to contend with the enormous impact of the external environment on the SME ecosystem, a significant segment of customers, and engaged with them robustly, considering the dynamics that the different businesses were facing according to the ground realities. The management dived into this initiative with vigor, headlining it under the slogan of empowering customers to reach greater heights, demonstrating its commitment to bolster the driving force for economic growth and aiding the country’s recovery by giving a crutch to entrepreneurs. Therefore, People’s Leasing introduced its sixth moratoria to support borrowers adversely affected by the adversities. Based on eligibility, the scheme targeted customers operating in all major sectors, including tourism and transportation, and MSMEs working in manufacturing, agriculture, and construction. The management went on to assist customers not benefitting from the moratoria with special concessionary schemes to help them keep their businesses running and meet debt obligations. People’s Leasing extended its outreach with advisory services to help customers improve business resilience and secure financial well-being.

Given the force of the circumstances and their impact on its customers, the management had to ensure that everyone in the relationship had to go through the fire and come out unscathed. People’s Leasing proudly asserts its status as a reliable NBFI, so it had to settle for a subdued performance. However, the management is satisfied with the outcome, which they believe is a testament to their timely response to stem any likely fallout from the events, which safeguarded their customers’ interest and the business’s stability.

The management is proud of its achievements amid the adversities in the reporting period and is hopeful of moving in a growth trajectory with a return to political stability. They said correcting the intrinsic macroeconomic weaknesses stumping industry and sector growth with broad-based monetary and fiscal policy reforms is essential. As People’s Leasing looks forward to being the architects of change for individuals and businesses in Sri Lanka, it hopes for an altered operating landscape to help them deliver on their mission.

32. ACL Cables

ACL Cables is a company that values strong partnerships, whose success is a collaborative effort, who, in a whirlwind year, walked through the challenges, seized the opportunities, and tells a story of success. It was not an isolated journey for ACL Cables, which ranked thirty-second in Business Today’s TOP 40 corporate awards. A dedicated team steered by strong leadership chartered a problematic path through unwavering commitment, strategic initiatives, and innovation to deliver a record pre-tax performance and a remarkable post-tax profit.

The electric cable manufacturer became the casualty of the slowdown in other sectors, such as construction and manufacturing subsectors, stemming from raw material shortages and cost escalations. Additionally, the energy crisis, a stringent monetary policy, and a devalued currency also weighed in on industry subsector performance, exhibiting contractions from the beginning of the reporting period and continuing.

Chairman U G Madanayake said the Group’s response to the situation helped it continue and record remarkable revenue growth. They did that by repositioning and optimizing the businesses to achieve resilience and strengthen operations. Managing Director Suren Madanayake said the results show the customers’ pull for their products. In contrast, rigorous investment in augmenting their products’ quality and trust has always stood steadfast in every problematic situation.

The future looks tough, said the chairman. High inflation will lead to increased costs of raw materials, utilities, and labor, making it challenging for a business that has invested in construction and building material manufacturing, thereby shrinking profit margins. Foreign currency fluctuations are another concern accompanied by changes in consumer spending. Yet opportunities abound for the business to thrive if the situation eases with plans to drive market expansion and diversification, investment in R&D and innovation, sustainable practices, and strengthening customer relationships. By pursuing these strategic initiatives, the Group aims to become the leader in the industry, driving sustainable growth and delivering value to its stakeholders in the years to come. The operating environment is gradually easing, but as the challenges continue to loom, the management will focus on strengthening manufacturing and distribution capabilities through cost optimization and operational efficiencies.

33. Richard Pieris and Company

A diverse group focused on the market and driven by technology, with a footprint in retail, manufacturing, plantation management, and financial services, Richard Pieris and Company prides itself on being a home-grown business that thrives through resilience and innovation. In thirty-third place in the Business Today TOP 40 corporate awards, Richard Peiris and Company, under the leadership of Chairman Dr Sena Yaddehige, has stamped an identity as an enduring, stable, and profitable organization.

What he describes as one of the worst economic contractions in the country’s history, Yaddehige said the Group retained its financial stability and operational excellence through unwavering dedication and resilience, thereby recording revenue growth, which also reflects the management’s prudent strategic focus to create value to all stakeholders during a difficult time for business operations. Like everyone else operating in diverse portfolios, the events in the external environment impeded sectoral operations and performance, such as power and energy interruptions, supply chain disruptions to sourcing raw materials, and rupee depreciation, leading to price escalations. As the Group operates in the retail space, price escalations impacted consumer spending as much as the high-interest rate regime bore upon businesses and households. Despite the unprecedented challenges that all its business segments encountered in the year, the management reported revenue growth across the board in plantation, retail, rubber, plastics, furniture, and electronics.

The customer is the center of their universe said Yaddehige. Hence, they strived to develop unique products and services per their requirements in the reporting period. They will forge ahead with their customer-centric approach by understanding their evolving needs to serve them better, which will remain their focus in the future. It will be a journey committed to serving the customer and country and ushering in growth and profitability in all its business sectors, guided by prudent strategizing and optimism about a conducive operating environment.

34. Teejay Lanka

By proactively addressing short-term challenges and aligning long-term strategies with evolving market dynamics, Teejay Lanka remained committed to achieving its revenue targets for the 2022/23 reporting period. The Group delivered record-breaking revenue and contributed to the country’s forex earnings. In thirty-fourth place in the Business Today TOP 40 corporate awards, Teejay Lanka attributes its success to dedication and commitment.

While Teejay tried to stay on course with their strategic objectives for the year under review, which included new product development, acquisition of new customers, digitization, and the evolution of the customer mix, the dynamics in the operating environment demanded changes, affecting adoption of more cost-efficient models, a focus on increasing efficiency through planned short-term plant shutdowns, and the adjustment of long-term strategies, said Chairman Ajit Gunewardene.

Reflecting on the winds of change that blew at home and worldwide, the Group’s performance reported a solid first half, followed by a slowdown in the second half. The Group reported a significant 70 percent revenue growth. However, rupee depreciation led to its contraction in USD terms, accompanied by the impacts of an increase in the average selling price and changes in the product mix. The net profit also declined due to persistently high energy prices, market softness leading to underutilization of plant capacity, and challenging global economic conditions that pressured margins. However, the Group maintained a strong balance sheet with positive cash flow generation.

But, through the changes, the Group continued to expand business with key partnerships with brands and trade agreements with India and Japan. At the same time, the Group explored new investment opportunities in China, said Group CEO Pubudu De Silva, who said that the Group’s long-term focus would be customer diversification and product-focused expansion.

Teejay Lanka is looking to build a solid future for sustainable growth and success, and driving that growth would be an expansion of its product focus by incorporating innovations to enhance product capabilities and adapting to evolving consumer buying behavior.

35. Pan Asia Banking Coporation

Describing itself as a truly Sri Lankan bank, Pan Asia Bank, having perfected the banking business, looks upon the preceding year with contentment, satisfied that it stood by its stakeholders during a tumultuous time while constantly adding value. Ranked thirty-fifth in the Business Today TOP 40 corporate awards, PABC is determined to steer the journey with strength and stability. S B Rangamuwa, who was Chairman of PABC during the 2022 financial year, noted a clear path to recovery and stability after the precipitous period, a new route that demands determination and sacrifices.

Of course, PABC felt pressure from multiple scenarios like its peers. The increased cost of funding, forex losses, impairment provisions, and non-performing loans impacted the Bank’s bottom line in 2022. In addition, the Bank’s concessionary schemes to support distressed borrowers also impacted its earnings. During a difficult time for the people, PABC sided with their customers and identified the critical role played by the SMEs. Nimal Tillekeratne, who was the Managing Director during the 2022 reporting period, said that while the retail segment experienced a reasonable performance, the SME sector confronted roadblocks from the contraction of economic activities in the second quarter. That led the Bank to take a cautious approach to lending, especially to industries that it deemed highly stressed. Demonstrating its commitment to be an active partaker in the country’s economic recovery, the Bank lent its support to SMEs to remain afloat. It deferred payment for those in the tourism and other sectors affected by the macroeconomic realities of the reporting period. At the end of the financial year, the Bank reports that nearly 2.5 percent of its gross loans and advances book received moratoria.

With the Bank shifting its lending to low-risk segments, the default risk impacted its interest income in the short term, although it helped the Bank minimize potential credit losses. The Bank managed to reduce the concentration on the SME sector further to 25.13 percent in 2022, giving it the space to address several longstanding structural deficiencies and to redesign strategies to build market share. Led by these strategic decisions, the Bank, by not extending unsecured loans, restricted the increase in loan-related credit costs to 20.68 percent during the year.

PABC envisages pursuing a value-creation journey through organic growth in the domestic market. Revenue generation and sustainability will be core measures to drive profitability while enforcing its stability through prudent lending strategies, close monitoring of credit quality, efficient recoveries, and expansion of digitalization.

36. The Colombo Fort Land and Building Company

Commercial property developer and diversified conglomerate with business in real estate, investment, chemical and paint, distribution, manufacturing, food processing, motors, leisure, and plantations, The Colombo Fort Land and Building Company, thirty-sixth in the Business Today TOP 40 corporate awards, had a mixed bag of results in the 2022/23 reporting period. Chairman S D R Arudpragasam said that despite the challenges, the Group’s revenue grew, as well as the income of its subsidiaries, despite individual businesses facing vulnerabilities unique to the industries they represented. For instance, leisure was a casualty due to the country crisis, which the Group had to contend with, in this instance, despite a healthy spell during winter. However, rising operational and finance expenses led to shrinking margins and a loss to the sector in the year under review. In addition, manufacturing businesses also experienced impediments with sourcing material amid import restrictions, forex shortages, and increased costs. Working capital concerns had also prevailed during the year under review.

Uncertainties in the external environment had led the Group to push back its expansion plans, which it hopes to commence as a measure of normalcy returns to economic activities. However, it would pursue its growth agenda provided that there is stability. It is hopeful for the future and a turnaround, given that the Group’s companies had performed considerably well even in a challenging reporting year. Notably, the Group plans to expand its product portfolio, seek new industries and untapped markets, and upgrade infrastructure, which it hopes to launch based on the country’s growth prospects.

37. Sunshine Holdings

Sunshine Holdings, with healthcare, consumer goods, and agribusiness businesses, prides itself as an entirely homegrown enterprise whose success links with the country’s prosperity. Ranked thirty-seventh in the Business Today TOP 40 corporate awards, Sunshine Holdings grappled with a painful lull to its exemplary national contribution during one of the worst economic crises ever to blight the country. But it weathered the storm. Chairman Amal Cabraal proudly said they leveraged their extensive experience to remain stable amid multiple events, guided by strategic decision-making, risk management, and adaptation to change. Ultimately, the Group could hold its head high with people’s trust intact.

Its business sectors responded varyingly to the challenges in the external environment. The ban on chemical fertilizer and oil palm cultivation impacted the agribusiness sector. The consumer goods business confronted logistical disruptions and substantial increases in input costs. However, currency depreciation bolstered earnings from the Group’s export business. Its healthcare business had recorded additional revenue, becoming the most significant contributor to Group revenue.

Meanwhile, the Group’s import-dependent businesses faced unprecedented hindrances in the reporting period with the threat of bringing them to a halt. Group revenue increased, backed by its export portfolio, although profits dived due to goodwill impairment and tax revisions. The acquisition of the export business – Sunshine Tea supported revenue growth along with earnings from the pharmaceutical company.

Managing Director V Govindasamy expressed satisfaction with the performance, which exceeded most revenue targets for the 2022/23 reporting period. Notably, while the Group took a hit from the complex economic realities of the day, it thwarted a full-blown fallout and ensured it kept its stakeholder obligations intact. He is confident about the future and convinced of the strength of Sunshine Holdings because, since its inception, the Group has fought many battles and emerged victorious. He is confident of its rise yet again, stronger this time. He believes the Group occupies a unique position within the domestic business domain. A position to add wholesomely to national growth through its multiple sectors, and as Sri Lanka navigates a recovery path, Sunshine Holdings wants to play a vital role in that new trajectory.

38. Chevron Lubricants Lanka

When Sri Lanka probably endured one of its worst fuel shortages, Chevron Lubricant Lanka became a casualty and took a substantial tumbling as lubricant consumption declined. Fuel shortage and a ban on vehicle imports drove lubricant sales further downhill. Consumers reduced lubricant consumption by opting for longer oil drain intervals and shifted from packs to buying loose due to the cost. But, exhibiting a spirit of endurance, Chevron Lubricant Lanka, in the thirty-eighth position in the Business Today TOP 40 corporate awards, defended its market share while making more gains. Chairman Muhammad Najam Shamsuddin said that certain strategic decisions taken in late 2021 and early 2022 cushioned the Company from the impact of the economic crisis, which included cost management while they took measures to stem the impact of a devalued rupee and cost escalations. The Company had to cope with the rapidly changing expenditure by introducing timely product price revisions. The leadership is content with the profits recorded in 2022 amid very limiting circumstances, although it showed a marginal decrease from the preceding period. Significantly, the retail business made the most significant sales contribution, forcing the management to take a cautious approach to making price revisions and passing the burden to the consumer to contain rising expenditures. However, the company had to be on its toes to sustain the momentum for retail sales with promotions and trade schemes to capture seasonal demand and stay competitive in a price-conscious environment. In addition, the Company had to lend a helping hand to distributors and channel partners burdened by cash flow issues and investment limitations with financial support. Meanwhile, the Company leveraged from its export markets in Bangladesh and the Maldives. The market volatility may not fade in the short-term, and the management is aware of what to expect as they move forward. However, MD/CEO Bertram Paul is hopeful of a better future operating environment and is confident of his team’s ability to deliver. He said the Company hopes to take advantage of its strong brand recognition, vast distribution network, wide-ranging product portfolio, technology, and operational excellence backed by skilled personnel to continue to win the marketplace.

39. Tokyo Cement Company (Lanka)

Ever vigilant to the changes in the operating environment, Tokyo Cement Company, ranked thirty-ninth in the Business Today TOP 40 corporate awards, claims to be empowered to navigate the turbulent times. It is a future-ready organization.

The events of the 2022/23 reporting period directly impacted its business. The impacts were multiple. The management had to resort to price revisions in the face of escalating production and operational costs aggravated by the rising cost of raw materials amid a depreciated currency. The finished product then encountered many obstacles that upset marketing and sales operations. With import restrictions, the local manufacturer had to bear the burden of supplying the domestic demand but encountered more roadblocks with the country’s forex shortage hampering efforts to procure raw material from abroad, leading to delays, which, in turn, created a cement shortage in the market. Added to this complex state of affairs was the acute shortage of fuel that broke down the transport network. The industry also had to contend with a government decision to pause State-funded projects, impacting business.

Reporting on the Group’s performance amid the turbulence, Chairman Dr. Harsha Cabral said that the reporting year performed much better than the preceding one, recording post-tax profits despite absorbing 3.6 billion rupees in exchange losses, the results being a testament to the success of the strategy adopted by the management. He said the results are also a testament to the Group’s potential to contribute to the construction sector’s growth once the recovery process kicks in with macroeconomic stability. Despite the sharp increases in interest rates and construction costs, Tokyo Cement focused on its future by investing in capacity expansion, which, upon completion in 2024, would allow the production to increase from 3.1 million metric tons to four million metric tons annually.

Tokyo Cement’s success story of rising from the ashes of the economic crisis was a combined effort of many sacrifices, and according to Managing Director S R Gnanam, vigilant cost management and efficiency improvements were crucial to reducing operational and marketing expenditure. At the same time, they restructured overhead costs across business units, aiding in consolidating the bottom line.

Tokyo Cement takes a cautious approach to navigating the future but hopes to rise robustly as the economy recovers and proves conducive to growth. Whatever the dynamics of the external environment, Tokyo Cement aims to grow and, in pursuance of development, continues to invest in capacity expansion to maintain its market dominance.

40. Softlogic Life Insurance

In a good year for growth in the life insurance space, Softlogic Life Insurance was propelled into a leading position in the industry, surpassing veteran players in the market and earning the second slot in the life insurance market. Customer satisfaction was a key performance indicator of its success. In fortieth place in the Business Today TOP 40 corporate awards, Softlogic Life Insurance harnessed the opportunity of price escalations to sell insurance policies of higher value.

Chairman Ashok Pathirage lauded the achievement amid a challenging environment, including a much desirable post-tax profit that is a testament to their financial performance and business management. Speed was of the essence amid market changes, with Softlogic Life Insurance promptly altering its product mix to maintain growth levels. The higher interest rate regime led the management to focus on investment-related products where customers were keen on competitive yields. The Company owes its success in 2022 to its team’s exceptional work and extraordinary performance over several years that helped Softlogic Life push its market position four places up in five years while becoming the market leader in the health insurance space.

Buoyed by the year’s performance, Managing Director Iftikar Ahamed said the Company would continue to enhance offerings to all customer segments while instilling speed, efficiency, and agility, backed by digital technology in the entire value chain so that it maintains its strong performance backed by its financial, human, and intellectual resources.

Business Today March 2024

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