Sri Lanka Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in Sri Lanka, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals.
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Selling Factors & Techniques
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Overview

Price is generally the most important factor in sales. U.S. products are known for their high quality, and quality along with after-sales service is becoming increasingly important in the Sri Lankan market.

Consumer education also plays a key role in sales. Appointing a local agent or distributor is recommended for effective marketing and sales. Most government purchases are decided based on cost and available financing, provided the products meet required specifications.

Participation in national or local and regional exhibitions is another effective method of building awareness and introducing products to the market. These events are typically well attended by both trade professionals and consumers.

Trade Promotion & Advertising

Mass advertising is common across multiple media platforms. Newspapers, radio, and television all carry commercial advertising, while internet-based marketing, including social media campaigns, is expanding as internet access and mobile penetration increase. Several English-language newspapers, as well as Sinhala- and Tamil-language dailies, are widely available.

Colombo hosts a number of trade exhibitions and fairs, though international participation remains limited.

Resources

  • Lanka Academic Network                              
  • Lanka Page                                                      
  • Embassy of Sri Lanka in Washington DC 
  • U.S. Embassy Colombo
  • Lanka Business Report                                  
  • Sri Lanka Web Server        
  • Major English-Language Media
  • Daily FT                                                                        
  • Daily Mirror                                                    
  • Daily News                                                      
  • The Island            
  • The Morning                                    
  • Sunday Observer                                            
  • Sunday Times      
  • EconomyNext

Major Sinhala-Language Newspapers

  • Dinamina                                                        
  • Silumina                                                        
  • Lankadeepa                                      
  • Major Tamil-Language Newspapers
  • Virakesari
  • Thinakaran
  • Thinakural          
  • Business Journals
  • Echelon                                            
  • Business Today                                
  • Lanka Monthly Digest                    
  • Major Advertising Agencies
  • Grant McCann Erickson                  
  • JWT, Sri Lanka                                
  • Phoenix Ogilvy                                
  • Leo Burnett Solutions Inc.

Pricing

Price, the most critical buying factor, should be on par with the prevailing market price. A local agent or distributor can provide helpful suggestions and market intelligence to enable companies to make informed pricing decisions. Some firms have successfully offered special, low introductory prices on consumer products to gain a foothold in the market and develop customer awareness and loyalty.

Sales Service/Customer Support

After-sales service and customer support are increasingly important factors in Sri Lanka. Local companies that provide comprehensive support services have proven successful over time. U.S. firms should take this into account when selecting an agent or distributor.

Local Professional Services

Sri Lanka has an active and competent accounting profession based on the British model. The Institute of Chartered Accountants of Sri Lanka sets national accounting standards, which are regularly updated to reflect international accounting and auditing standards. KPMG, Ernst & Young, PricewaterhouseCoopers, and Deloitte all maintain offices in Sri Lanka.

The legal profession is also well established. Sri Lankan commercial law is primarily statutory. Much of it was codified before independence in 1948 and reflects the British law of that era, although it has since been amended to reflect changes in the United Kingdom. All agreements with local partners and agents should be in writing. In the event of a dispute, written records are essential to support a legal case. The Embassy’s Consular Section maintains a list of attorneys in Sri Lanka that could be helpful to American firms, which is available upon request. Leading law firms in Sri Lanka are also listed in the International Law List published in the United Kingdom. The legal system, however, is slow and cumbersome, and concerns remain about the politicization of the judiciary.

Principal Business Associations

Companies interested in operating in Sri Lanka should contact the American Chamber of Commerce (AmCham) for guidance and networking opportunities. Companies investing in or establishing a presence in Sri Lanka often consider joining the AmCham.

AmCham Sri Lanka represents more than 225 leading Sri Lankan and American companies engaged in trade, business, and investment activities between the two countries. AmCham is affiliated with the U.S. Chamber of Commerce, the largest business federation in the United States, and is also a member of the Asia-Pacific Council of American Chambers of Commerce (APCAC).

AmCham provides several benefits to its members, including networking events and business services, lobbying and advocacy efforts, industry-specific development programs, trade events, and a quarterly newsletter.

For more information, visit AmCham Sri Lanka.

Limitations on Selling U.S. Products and Services

The Sri Lanka Trade Information Portal (https://srilankatradeportal.gov.lk/) serves as a one-stop resource for information related to imports and exports. Implemented by the Sri Lankan Department of Commerce, the portal provides traders with accessible, user-friendly information on regulatory and procedural requirements for export, import, and transit. This initiative aligns with the government’s commitment under the World Trade Organization to comply with Article 1 of the Trade Facilitation Agreement.

Imports of agricultural commodities and meat products are subject to stringent health requirements that sometimes exceed international standards and restrict imports from the United States. Beef and pork are permitted only for limited purposes, such as use in the tourism and hospitality industries. Sri Lanka reserves the right to prohibit genetically modified (GM) agricultural commodities.

The importation of pharmaceuticals requires approval from the Drugs and Cosmetic Devices Committee of the Ministry of Health. In May 2019, the government issued regulations setting maximum retail prices for 60 medicinal product formulations (https://nmra.gov.lk/index.php?lang=en). Price control applies to both branded and generic versions of the listed formulations. Medical device registration remains cumbersome and can take six months to two years to complete. Additionally, if a foreign principal seeks to terminate services of a local agent, the agent must provide a no-objection letter before a new representative can be appointed. Without such a letter, the foreign principal cannot appoint a replacement agent.

The Ministry of Defense controls import of firearms and ammunition for use by the armed forces, police, and civil security agencies. Certain military-related or dual-use items are prohibited or restricted. These include radars, night-vision devices, beta lights, armored vehicles, explosion-detection equipment, digital-jamming equipment, infrared illuminators, GPS equipment, and laser designators. Imports of laser or radar range finders and thermal-image devices require Ministry of Defense approval. Remote-controlled toys are subject to licensing for public security reasons. Restrictions also apply to the import of toxic and hazardous chemicals and pesticides. Used and reconditioned air conditioners and refrigerators are subject to license controls for environmental protection.

For additional details on import barriers, see the Customs, Regulations, and Standards section. Further information is available from the Sri Lanka Department of Import and Export Control (http://www.imexport.gov.lk/index.php/en/) and Sri Lanka Customs (https://www.customs.gov.lk/)

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