Sri Lanka Paints and Coatings Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Sri Lanka Paints and Coatings Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Sri Lanka Paints and Coatings market is estimated at USD 162.41 million currently and is expected to reach USD 179.41 million s over the forecast period, registering a CAGR of over 2% during the forecast period.

Most manufacturing facilities were shut down due to the pandemic, and paints and coatings production was affected severely, which impacted production facilities for several months due to the lockdown. The supply chain throughout Sri Lanka was fractured. The economic instability due to the pandemic outbreak has created a downfall in the paints and coatings sector. Substantial growth was predicted to return in 2021 as the market for paints and coatings' intrinsic driving drivers remained constant. Currently, the market has recovered from the pandemic and is growing at a significant rate.

Key Highlights

• Over the short term, the growing demand for paints and coatings from the architectural sector and the increasing demand from the automotive industry is the major factor driving the growth of the market studied.
• On the flip side, the economic crisis of Sri Lanka is hindering the growth of the market.
• Nevertheless, various construction projects in upcoming years, and investment opportunities in Sri Lanka is likely to create lucrative growth opportunities soon.

Sri Lanka Paints And Coatings Market Trends

Architectural Segment to Dominate the Market

• Architectural paints and coatings are by far the largest segment in the whole paints and coatings industry. Architectural coatings are meant to protect and decorate the surface features. These are used to coat buildings and homes. Most are designated for specific uses, such as roof coatings, wall paints, and deck finishes. No matter its use, each architectural coating must provide certain decorative, durable, and protective functions.
• Architectural coatings are used in the applications for commercial purposes, such as office buildings, warehouses, retail convenience stores, and shopping malls to residential buildings. Such coatings can be applied on the outer surfaces as well as inner surfaces and include sealers or specialty products. Architectural coatings can be mainly divided into interior and exterior coatings.
• Durability, hide, stain resistance, and low VOC are some of the integral functionalities in every interior paint formulations. They are not only used for decorative purposes but also used for a wide range of functionalities depending on the type of environment in which they are used. For example, due to moisture, bathroom walls must have wipe-ability to keep them clean. Paints with glossier sheens have a tighter molecular structure than flat paints, making it more difficult for moisture to penetrate. So, these types of paints are used in the bathroom.
• In the living room and bedroom walls, most homeowners prefer to use the color of their choices. Acrylic paints are the preferred choice for living and bedroom walls, as they offer a wide variety of choices in terms of color and shade. In the case of ceiling, a vast majority of ceilings are painted flat white so that they may reflect the majority of the ambient light in the room to make the resident feel that the room is spacious and relaxed. Basement masonry walls can often weep water. Elastomeric paints that expand on pressure are used in this area to prevent water leakage.
• Paints and coatings for exterior walls look for ease of application, durability along with protection against extreme weather from rain to hot summer heat. Modern advances in paint technology, especially in the acrylic formulations has offered a wide range of weatherproof coatings.
• Sri Lanka's legal structure is similar to English law, making it simple for overseas investors to invest there. The country has a list of projects that will attract investors to conduct their business. One of the project namely Port City Colombo Project that includes Luxury Hotel Development, Port City Villa Development, and Mixed Use Development needs an approximate investment of USD 229.0 million, USD 362.5 million, and USD 355 million, respectively.
• The nation also has a list of Urban Development Project to be commenced in the coming years such as Downtown City Centre, Golden Gateway to Port City, and Narahenpita New Township with estimated investments of USD 75 million, USD 1.0 billion, and USD 170 million.
• All the abovementioned factors, in turn, are projected to drive the demand for Sri Lanka paints and coatings in the coming years.

Automotive Sector to Dominate the Market

• Sri Lanka aims to achieve upper-middle-income status by the end of 2025. It is also an attractive investment destination.
• Additionally, the government has come up with a creative plan to revive the economy by hosting a large global webinar to exhibit the best of what Sri Lanka has to offer to international investors.
• The modern automobile industry in Sri Lanka is being shaped by rising adoptions of electric vehicles and rising demand for sophisticated safety, connection, convenience, and driver-assist technologies.
• OEM manufacturers intend to increase their manufacturing sites in Sri Lanka. The Sri Lankan government also prioritizes the automotive sector as a key revenue generator and encourages the flow of FDIs into the industry.
• Multiple factors such as labour availability, R&D initiatives, location advantage, and government assistance boost the Sri Lanka vehicle sector.
• According to Central Bank of Sri Lanka, car registrations increased to 374 Units in March 2023 from 220 Units in February of 2023.
• All the abovementioned factors, in turn, are projected to drive the demand for Sri Lanka paints and coatings in the coming years.

Sri Lanka Paints And Coatings Industry Overview

The Sri Lankan paints and coatings market is consolidated in nature. The major players include Lankem Ceylon Plc, Asian Paints, NIPPON PAINT (LANKA) PRIVATE LIMITED, Akzo Nobel N.V., and Macksons Paints Lanka (Pvt.), among others (not in any particular order).

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