Sri Lanka Cold Chain Market Outlook to 2029

The report titled “Sri Lanka Cold Chain Market Outlook to 2029 - By Market Structure, By Industry Segments (Fruits & Vegetables, Dairy Products, Meat & Seafood, Pharmaceuticals), By Type of Storage (Refrigerated Warehousing, Cold Transport), By End Users, and By Region” provides a comprehensive analysis of the cold chain industry in Sri Lanka. The report covers an overview and genesis of the industry, overall market size in terms of revenue, market segmentation; trends and developments, regulatory landscape, customer-level profiling, issues and challenges, and comparative landscape including competition scenario, cross-comparison, opportunities and bottlenecks, and company profiling of major players in the Cold Chain Market. The report concludes with future market projections based on sales revenue, by market, segment, region, cause and effect relationship, and success case studies highlighting the major opportunities and cautions.

Sri Lanka Cold Chain Market Overview and Size

The Sri Lanka cold chain market was valued at LKR 41 Billion in 2023, driven by the rapid expansion of organized retail, rising exports of perishable products, and a growing demand for safe pharmaceutical logistics. The market is dominated by players such as Emerald Logistics, Hayleys Advantis, Dart Global Logistics, and ColdCo Storage, who are recognized for their integrated cold storage and transport solutions, extensive infrastructure, and quality control mechanisms.

In 2023, Hayleys Advantis expanded its temperature-controlled warehousing in the Western Province to meet growing demand from the pharmaceutical and dairy sectors. Colombo and Gampaha remain the most active regions due to concentrated industrial activity, urban population, and logistics connectivity.

Market Size for Sri Lanka Cold Chain Industry on the Basis of Revenues in USD Million, 2018-2024

What Factors are Leading to the Growth of Sri Lanka Cold Chain Market:

• Increasing Demand for Perishable Goods: The rise in consumption of perishable products such as dairy, seafood, fruits, and vegetables has created strong demand for temperature-controlled logistics. In 2023, perishable goods contributed to nearly 60% of cold chain volume movement in Sri Lanka, as urban consumers increasingly demand fresh and safe food products throughout the year.

• Pharmaceutical Sector Expansion: With the growing need for temperature-sensitive pharmaceutical storage, especially post-COVID-19, Sri Lanka has seen a 20% increase in demand for cold storage facilities serving vaccine, insulin, and diagnostic kit distribution. Regulatory compliance and the need for high-quality standards have further accelerated investments in pharma-centric cold chain infrastructure.

• Government Initiatives and Export Promotion: The Sri Lankan government has prioritized food security and agricultural export promotion by offering subsidies and incentives for cold chain infrastructure development. The country aims to increase agricultural exports by 30% by 2029, pushing for better supply chain mechanisms to minimize post-harvest losses.

Which Industry Challenges Have Impacted the Growth for Sri Lanka Cold Chain Market

• Infrastructure Limitations: A key barrier to cold chain development in Sri Lanka is the limited availability of modern cold storage and reefer transport facilities, especially outside key urban centers. As of 2023, nearly 45% of perishable goods in rural regions lack access to cold storage, resulting in significant post-harvest losses and supply chain inefficiencies.

• High Operating Costs: Electricity and fuel prices in Sri Lanka have remained volatile, increasing the cost of maintaining temperature-controlled environments. On average, energy expenses contribute to over 30% of total cold chain operating costs, making it challenging for smaller operators to scale efficiently and maintain competitive pricing.

• Fragmented Market and Low Standardization: The cold chain sector is highly fragmented, with many small unorganized players lacking standardized processes and technology adoption. According to industry estimates, nearly 60% of storage facilities do not comply with WHO-GDP or HACCP standards, hindering service reliability for sensitive sectors like pharmaceuticals and exports.

What are the Regulations and Initiatives which have Governed the Market:

• Export-Oriented Cold Chain Support by the Government: The Sri Lankan Ministry of Agriculture and Export Development Board (EDB) has prioritized cold chain development for high-value export crops like mangoes, bananas, and seafood. Several incentive schemes, including duty waivers for cold chain equipment imports, have been rolled out under the National Export Strategy.

• Pharmaceutical Compliance Standards: The National Medicines Regulatory Authority (NMRA) mandates strict adherence to Good Distribution Practices (GDP) for cold chain logistics involved in transporting vaccines, insulin, and biologicals. In 2023, 80% of licensed pharma distributors complied with temperature logging and validation procedures, a significant increase from 65% in 2021.

• Public-Private Partnerships (PPPs) for Infrastructure Development: The government has encouraged collaboration with private investors to develop cold storage hubs in port zones such as Colombo and Hambantota. These PPP initiatives aim to build integrated multi-temperature logistics zones to support both domestic demand and export readiness.

Sri Lanka Cold Chain Market Segmentation

• By Market Structure: Organized players dominate the market due to their adherence to international cold chain standards, investment in modern infrastructure, and ability to offer integrated logistics solutions. These companies typically provide end-to-end services including real-time tracking, temperature monitoring, and compliance with pharmaceutical and food safety guidelines. Unorganized players continue to serve a significant portion of the domestic market, particularly in rural and semi-urban areas, by offering lower-cost services. However, they face challenges related to temperature control reliability, lack of automation, and limited storage capacity.

• By Industry Segment: Pharmaceuticals lead the cold chain demand in Sri Lanka due to stringent temperature control requirements for vaccines, insulin, and specialty drugs. Meat and seafood follow, with a large portion being processed for export and requiring frozen storage. Dairy products contribute significantly, particularly in urban areas with growing demand for milk, cheese, and yogurt. Fruits and vegetables also play a major role as post-harvest losses remain high without proper cold storage, prompting adoption of reefer transport and pre-cooling systems.

• By Type of Storage: Refrigerated warehousing forms the core of the cold chain infrastructure, catering to bulk storage needs of pharmaceuticals, dairy, and seafood industries. These warehouses are typically located near industrial zones and urban centers. Cold transport is essential for first- and last-mile connectivity, especially for perishable agricultural produce and pharmaceutical logistics. In 2023, refrigerated transport saw growing traction due to increased urban consumption and expansion of e-commerce-based grocery and medicine delivery platforms.

Competitive Landscape in Sri Lanka Cold Chain Market

The Sri Lanka cold chain market is moderately consolidated, with a few key players operating across warehousing, transportation, and integrated logistics. However, increasing demand from pharmaceuticals, agriculture, and retail has led to the entry of new players and expansion of service offerings. Major companies like Emerald Logistics, Hayleys Advantis, Dart Global Logistics, ColdCo Storage, and EFL 3PL dominate the organized segment, offering end-to-end temperature-controlled solutions across the country.

Some of the recent competitor trends and key information about competitors include:

• Emerald Logistics: A leading player in integrated cold chain logistics, Emerald Logistics reported a 20% increase in pharma cold storage utilization in 2023, largely driven by vaccine and biologicals distribution. The company has invested in new refrigerated facilities near Bandaranaike International Airport to enhance export preparedness.

• Hayleys Advantis: Known for its large-scale warehousing capacity, Hayleys Advantis launched a state-of-the-art multi-temperature logistics hub in Western Province in 2023. The facility is designed to handle over 8,000 pallet positions and serves clients in dairy, meat, and life sciences industries.

• Dart Global Logistics: Dart Global has focused on expanding reefer container services for the seafood export sector. In 2023, it reported a 15% rise in reefer cargo volume, driven by increased trade with the EU and Middle East.

• ColdCo Storage: A specialized provider of cold warehousing for fruits and vegetables, ColdCo expanded its rural reach by partnering with agro-cooperatives. In 2023, the company operated more than 25 small-scale cold units across the Central and Uva provinces, reducing post-harvest losses by up to 18%.

• EFL 3PL: A subsidiary of ExpoLanka Holdings, EFL 3PL has gained traction in e-commerce cold deliveries. In 2023, it piloted cold last-mile delivery services for online grocery platforms in Colombo and suburbs, leveraging GPS-enabled refrigerated vans for real-time monitoring.

What Lies Ahead for Sri Lanka Cold Chain Market?

The Sri Lanka cold chain market is projected to witness steady growth through 2029, supported by strong demand from the pharmaceutical, agriculture, and food processing sectors. The market is expected to grow at a healthy CAGR, driven by rising export demand, investments in cold logistics infrastructure, and regulatory push for temperature compliance across sensitive sectors.

• Expansion of Cold Chain Infrastructure in Rural Areas: The Sri Lankan government, along with private sector partners, is expected to focus on bridging the cold chain gap in agricultural regions. Improved road connectivity and targeted investments in pre-cooling and mobile storage units will help minimize post-harvest losses and ensure fresher produce delivery, especially in provinces like Uva, North Central, and Eastern.

• Digitization and IoT Integration: The adoption of IoT-based temperature monitoring, automated warehouse systems, and GPS-enabled reefer trucks is expected to accelerate, offering real-time visibility and improved operational efficiency. These technologies will enhance traceability and ensure compliance with pharmaceutical and food safety norms.

• Rise of E-Commerce-Driven Cold Deliveries: The growing popularity of online grocery and medicine delivery platforms is likely to drive the demand for cold last-mile logistics. Urban centers like Colombo, Kandy, and Galle will see increased deployment of refrigerated vans and micro-fulfillment centers to support the quick commerce ecosystem.

• Increased Focus on Pharma and Vaccine Logistics: Sri Lanka's pharmaceutical cold chain segment is expected to expand significantly due to increased reliance on biologics, vaccines, and specialty drugs. Companies will invest more in WHO-GDP compliant storage and validated cold transport networks, ensuring safe and efficient movement of high-value medicines.

Future Outlook and Projections for Sri Lanka Cold Chain Market on the Basis of Revenues in USD Million, 2024-2029

Sri Lanka Cold Chain Market Segmentation

• By Market Structure:
o Organized Sector
o Unorganized Sector
o Integrated Cold Chain Providers
o Standalone Cold Storage Providers
o Cold Transport Operators
o Third-Party Logistics (3PL) Cold Chain Services

• By Industry Segment:
o Pharmaceuticals
o Fruits & Vegetables
o Meat & Seafood
o Dairy Products
o Processed Food
o Quick Service Restaurants (QSRs) & Retail Chains

• By Type of Storage:
o Refrigerated Warehousing
o Cold Transport (Reefer Trucks)
o Multi-temperature Facilities
o Portable Cold Rooms

• By Temperature Range:
o Frozen (-18°C and below)
o Chilled (0°C to 8°C)
o Controlled Ambient (15°C to 25°C)

• By End Users:
o Exporters
o Food Processors
o Pharmaceutical Companies
o Retailers & Supermarkets
o E-commerce & Online Grocery Platforms
o Government & Health Departments

• By Region:
o Western Province (Colombo, Gampaha, Kalutara)
o Central Province (Kandy, Matale, Nuwara Eliya)
o Southern Province
o Northern & Eastern Provinces
o Uva & Sabaragamuwa Provinces

Players Mentioned in the Report:

• Lineage Logistics
• Yusen Logistics Sri Lanka
• Transcargo (Private) Limited
• Aitken Spence Logistics
• Finlay Cold Storage
• Expolanka Freight (EFL)
• Spectra Logistics
• Logicare
• McLarens Logistics Group
• Abans Logistics (Pvt) Ltd
• Kerry Logistics Lanka (Pvt) Ltd
• Omni Logistics Sri Lanka
• LAUGFS Holdings

Key Target Audience:

• Cold Chain Logistics Companies
• Food & Agriculture Exporters
• Pharmaceutical Distributors
• Retail Chains & QSR Operators
• E-commerce Grocery Platforms
• Government & Policy Makers
• Cold Chain Equipment Suppliers
• Investors and Infrastructure Funds

Time Period:

• Historical Period: 2018–2023
• Base Year: 2024
• Forecast Period: 2024–2029