According to Mr Samantha Wickramaarachchi – what a magnificent name - the Furniture Specialist at the Sri Lankan Export Development Board, the furniture market in Sri Lanka is worth about $105 million.

1. Article to be published in World Furniture, June 2012
SRI LANKA – ITS EXPO AND ITS FURNITURE
by John Sacks, JSA Consultancy Services , London.
According to Mr Samantha Wickramaarachchi – what a magnificent name - the
Furniture Specialist at the Sri Lankan Export Development Board, the furniture
market in Sri Lanka is worth about $105 million. Local production, after exports of
$20 million, contributes about $55 million; the rest is imported. There are no large
local manufacturers; in fact no furniture manufacturer employs more than 100
people and there are only about 25 which employ more than 50. By way of contrast,
there are more than 600 businesses with fewer than 25 employees.
The market is dominated by two companies, H. Don Carolis and A.T. Cooray which
have a combined share of 35% of the market. Most of the larger companies have a
very broad product spread making bedroom, living room, kitchen and upholstered
furniture, and some office furniture as well. As with many developing markets,
manufacturing merges into distribution, and most of the larger companies retail their
own products through their showrooms in Colombo and other larger cities.
HALF OF THE MARKET IS IMPORTED
The materials used are mostly solid timber and particle board, cane and rattan. The
timbers are generally not the standard show wood varieties but rather those
generally available locally, such as Rubberwood. The supply of other varieties such
as Teak, Satinwood and Jackwood is tightly controlled by the State owned Timber
Corporation and they are only available either by licence or as recycled “old wood” -
usually comes from old housing stock. The high levels of imports – almost half of the
market – is a function not of a lack of manpower or skills but rather of a shortage of
supply of timber. How ironical for a land covered with millions of acres of lush
tropical forests. A substantial proportion of the timber which is released onto the
market is used for tool handles, flooring and gift boxes, which compounds the
problem for furniture manufacturers.
Apart from the largest companies, manufacturing is very “low tech” but what is
lacking in modern flowline production is more than made up with fine hand crafting
and highly skilled carving. Little of the natural colour and grain pattern of the timber
is generally seen however because of the use of very dark stains and paint finishes.

2. EVENT PROFILE
In March this year, the writer visited Expo Sri Lanka 2012 as a guest of the Sri
Lankan Export Development Board. Until the end of the civil war in 2009, the
security situation meant that this was the first time for 13 years that the country had
staged an international exhibition.
BMICH exhibition & Conference Centre, Colombo, Sri Lanka
The event clearly won great official support with over 500 Government Ministers,
overseas ambassadors and High Commissioners, VIPs, “Special Guests” and lowly
journalists attending the swelteringly hot opening ceremony performed by the
country’s President on Day 1. A similar ceremony was carried out by the Prime
Minister on Day 2.
The show was held in ten halls in the exhibition complex on the outskirts of Colombo
over four days at the end of March, with the first three being trade and official
visitors only. Although the stands were small, considerable effort had gone into the
companies’ presentation of their products and services which concentrated on the
country’s main exports – fashion, gems, software, tea and spices. There were five
companies showing furniture of which three concentrated on children’s furniture.

3. Roshan Beruwalage of Sujeewa Antiques (the name is misleading) showed some
well crafted black painted Jackwood living and dining room pieces which had been
made from “old wood”. The company employs 50 people in their factory in
Ambalangoda, 100 km south of Colombo and they export to the UK, Germany and
the USA. Interestingly, they took down their website some time ago because they
found their competitors were using it to facilitate the copying of their products.
Sujeewa Antiques
The Department of Integrated Design of the University of Moratuwa used their stand
to show off their interesting use of rattan which grows abundantly in Sri Lanka.
Working with a team of ten craftsmen from Radawaduna Village, they had created
some attractive items of occasional furniture which the villagers have started to
produce.

4. There were also three companies showing colourful items of children’s furniture
including chairs, tables and bunk beds.
Children’s furniture from Simplex and Art & Crafts International
DYNAMIC ECONOMIC GROWTH EXPECTED
The show was well attended, at least by local buyers, and the attendees seemed
interested and professional. Sri Lanka has a high standard of living compared with
other Southern Asian countries and the pace of development and construction is
very rapid. Wherever one travels on the island, roads, houses, bridges and
commercial construction is very much in evidence and with political and economic
stability, demand for well designed and good quality furniture seems set to rise for
the foreseeable future. With import duty on furniture of more than 60%, local
manufacturers with their skills and control of the retail distribution are well placed to
take full advantage of this growth. Whether these same manufacturers will also be
able to exploit overseas markets remains to be seen.
Away from furniture, Sri Lanka is clearly a country which is poised for dynamic
economic growth. The ending of hostilities and a stable government has started to
release pent up entrepreneurship which is seen in the thousand if micro businesses
you see everywhere. Inward investment is being encouraged, and with a claimed
annual growth of 8%, annual inflation of 4% - 5% and a young and hard working
population, the country could become a serious target for the inflow of international
funds.