Sri Lanka eyes Asia’s boat-manufacturing hub status
The Morning: Sri Lanka is positioning itself as Asia’s next major boat-manufacturing hub, backed by a Rs 70 million investment in a Beruwala facility, to expand and grow exports of luxury boats to the international market, as the sector moves into higher-value luxury boat production, Sea Leisure Yachting Group (SLYG) Managing Director Indhra Kaushal Rajapaksa said during a visit to the Koggala Free trade Zone on recently.Rajapaksa said: “Sri Lanka is establishing itself as the premier hub for boat manufacturing in all of Asia. We are essentially building something akin to a Mercedes-Benz, after all, this is a luxury-class ‘Amphibious Boat.’ We are absolutely delighted to be exporting it to Europe for the first time, as that is where the brand and the factory are based. For the first time, with an investment of 70 million in Beruwala, we secured the facility to launch operations.”“It has been about 18 years since we started building boats. This initiative was realised through the Ministry of Industries under the leadership of the Minister Sunil Hadunetti. I consider this a major achievement, as it enables the industry to function as a ‘one-stop shop’ for our boat exports. Because we have more problems when we are exporting boats rather than manufacturing the boat,” Rajapaksa said.Minister of Industries and Entrepreneurship Development Sunil Hadunetti said: “Our location at sea offers an opportunity unlike that of any other country in the world. Had we not been situated here, I do not think the boat manufacturing industry would have been relevant to us.”According to the Export Development Board’s (EDB) Industry Capability Report, the boat building industry has been identified as a leading industry and an emerging export sector that continues to boom in Sri Lanka. The global leisure boats market is forecast to grow at a compound annual growth rate of around 5–6% through 2030, driven by rising disposable incomes, and the expansion of marina infrastructure. However Sri Lanka’s boat manufacturing sector faces core hurdles including infrastructure bottlenecks, heavy reliance on imported parts, and a slow shift to advanced technologies, EDB stated.Meanwhile, Hadunetti said: “Navigating the regulatory hurdles to export the product takes longer than actually building the boat, or even a yacht. I believe the time spent dealing with these obstacles to get it onto the market exceeds the time required for the manufacturing process itself.”“To address these bottleneck barriers, our Ministry of Industries is now prepared to function as a ‘one-stop center’ to grow exports of luxury boats to the international market,” he said.
OSL take:
Sri Lanka’s emergence as a higher-value boat-building and export hub could create new business/investment opportunities for foreign companies and investors seeking to establish manufacturing, joint-venture and technology operations in the country. With the local industry moving beyond conventional boat production into luxury yachts, high-end leisure craft and specialised vessels, opportunities are emerging for international companies in design, marine engineering, propulsion systems, navigation equipment, composites, electronics and other specialised components. Sri Lanka’s location in the Indian Ocean also provides a strategic base for manufacturers seeking to serve Asian, Middle Eastern and European markets, while the country’s established boat-building expertise and export experience provide a foundation for partnerships with global brands. Foreign businesses/investors could also explore opportunities in maritime component manufacturing and supply chains, including engines, electrical systems, marine interiors, safety equipment and advanced materials. Technology partnerships could help local manufacturers move further into higher-value and more technologically sophisticated vessels. The development of dedicated facilities and efforts to make boat exports more streamlined could further improve the investment environment for international manufacturers and brands. For foreign investors, Sri Lanka’s boat-building sector therefore offers an opportunity to participate in the development of an export-oriented marine manufacturing cluster, combining the country’s geographical advantage and existing industry capabilities with international technology, capital and market access.
| Article Code : | VBS/AT/20260921Z_4 |