Raw cane or beet sugar in solid form market in Sri Lanka

Earlier Report Observations

From 2018 to 2021, the sugar market in Sri Lanka expanded from 121.2 thousand tons to 178.3 thousand tons, driven primarily by rising imports. Domestic production was constrained by insufficient cane supplies, limiting utilization at state-owned mills like Pelwatte and Sevanagala. Government measures included a 2% increase in import tariff rates in 2018 to protect local industry, and in 2021, the imposition of VAT on brown sugar shifted demand toward white sugar, affecting market structure. Low world sugar prices in 2020 made imports attractive, supporting market growth.

The market contracted sharply to 79.0 thousand tons in 2022 and 66.0 thousand tons in 2023. This followed the government's imposition of maximum retail price controls on sugar and the reinstatement of higher taxes on sugar imports. Foreign exchange scarcity and banking restrictions constrained import flows, resulting in near-zero imports. New investment projects like Bibile Sugar Industries Limited, planning integrated sugar-power-dairy development, faced delays due to political and environmental challenges.

Production raw cane or beet sugar in solid form in Sri Lanka

In kind, 2017-2020, t

Top producers of raw cane or beet sugar in solid form, 2017-2020

World map of production of raw cane or beet sugar in solid form, 2017-2020

In 2020, Sri Lanka produced 60 000 tonnes of raw cane or beet sugar in solid form. Production remained relatively stable compared to 2019. Looking at the broader period from 2017 to 2020, production decreased by 14.3%, which translates to an average annual decline of 5.0%. The lowest production level was recorded in 2019 at 60 000 tonnes, with the largest year-on-year drop of 7.7% occurring that same year.

Annual dynamics of production in Sri Lanka in kind, 2017-2020, t

Exports raw cane or beet sugar in solid form from Sri Lanka

Exports in kind, t

The export market for raw cane or beet sugar in solid form showed considerable volatility during the analyzed period. From 2017 to 2018, exports experienced extreme fluctuations, with a peak-to-trough amplitude of 59 times. In 2020, Sri Lanka exported 48 tonnes, representing a substantial increase of 364.0% compared to the previous year. The highest export volume was recorded in 2018 at 409 tonnes. The most significant decline occurred in 2019 with a drop of 97.5%, while the largest increase was in 2018 with a remarkable surge of 5 792.5%.

Annual dynamics of product's exports from Sri Lanka in kind, 2017-2020, t

Between 2017 and 2020, the main destinations for Sri Lanka's raw cane or beet sugar in solid form exports were Maldives (50.8% of exports in kind), the United Kingdom (14.1%), and France (10.6%). Together, these three markets accounted for 75.4% of total exports in kind.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Sri Lanka in kind, 2017-2020

Exports in value, K $ US

Export values displayed irregular patterns, reflecting a volatile market environment. The peak occurred in 2018, followed by a trough in 2019, with a 15-fold difference between these years. In 2020, Sri Lanka exported raw cane or beet sugar in solid form worth 88 thousand US dollars, marking a sharp increase of 165.4% compared to the previous year. The minimum value was recorded in 2019 at 33 thousand US dollars, while the maximum reached 502 thousand US dollars in 2018. The most significant decline happened in 2019 with a drop of 93.4%, and the largest increase occurred in 2018 with a surge of 931.5%.

Annual dynamics of product's exports from Sri Lanka in value, 2017-2020, K $ US

From 2017 to 2020, the primary markets for Sri Lanka's raw cane or beet sugar in solid form exports by value were Maldives (35.8% of exports in value terms), the United Kingdom (24.8%), and the United Arab Emirates (11.7%). These three countries together represented 72.2% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Sri Lanka in value, 2017-2020

Imports raw cane or beet sugar in solid form to Sri Lanka

Imports in kind, t

Sri Lanka's imports of raw cane or beet sugar in solid form increased for the third consecutive year in 2020, reaching 88 792 tonnes. This represents a 23.7% increase compared to 2019. Over the period from 2017 to 2020, imports grew by 264.2%, which corresponds to an average annual growth rate of 53.9%.

Annual dynamics of product's imports to Sri Lanka in kind, 2017-2020, t

Between 2017 and 2020, India and Thailand dominated Sri Lanka's imports of raw cane or beet sugar in solid form in kind, together accounting for 89.9% of total import flows. Other markets contributed relatively small shares.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Sri Lanka in kind, 2017-2020

Imports in value, K $ US

Sri Lanka's import value of raw cane or beet sugar in solid form increased for the third consecutive year in 2020, reaching 34 130 thousand US dollars. This represents a 42.3% rise compared to 2019. Over the 2017-2020 period, import values increased by 148.3%, with a compound annual growth rate of 35.4%.

Annual dynamics of product's imports to Sri Lanka in value, 2017-2020, K $ US

From 2017 to 2020, India and Thailand remained the principal sources for Sri Lanka's imports of raw cane or beet sugar in solid form by value, jointly accounting for 87.2% of total import flows. Other trading partners made up the remaining share.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Sri Lanka in value, 2017-2020