Sri Lanka Logistics and Warehousing Market Outlook to 2029

The report titled “Sri Lanka Logistics and Warehousing Market Outlook to 2029 – By Service Type (Transportation, Warehousing, Value-Added Services), By End-User Industry, By Mode of Transport (Road, Rail, Air, Sea), and By Region” provides a comprehensive analysis of the logistics and warehousing 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 profiling, issues and challenges, and comparative landscape including competition scenario, cross comparison, opportunities and bottlenecks, and company profiling of major players. The report concludes with future market projections based on revenues, by service type, region, and sector, along with key success case studies highlighting major opportunities and cautions.

Sri Lanka Logistics and Warehousing Market Overview and Size

The Sri Lanka logistics and warehousing market was valued at approximately LKR 560 Billion in 2023, driven by rising e-commerce penetration, increasing foreign investment in industrial parks, and improved road and port infrastructure. The industry is led by players such as Hayleys Advantis, Expolanka Freight, Aitken Spence Logistics, Dart Global Logistics, and CL Synergy, known for their diversified offerings across freight forwarding, warehousing, and last-mile delivery solutions.

In 2023, Hayleys Advantis launched a state-of-the-art multi-user warehouse in Biyagama Export Processing Zone, expanding capacity to serve the increasing demand from apparel and FMCG sectors. Colombo and Western Province remain key logistics hubs due to their proximity to the port and access to industrial clients.

Market Size for Sri Lanka Logistics and Warehousing Industry on the Basis of Revenue in USD Billion, 2018-2024

What Factors are Leading to the Growth of Sri Lanka Logistics and Warehousing Market:

• E-commerce and Retail Demand: The rapid growth of online retail has boosted the demand for efficient logistics and storage capabilities. In 2023, e-commerce contributed approximately 18% of total retail sales, leading to increased demand for urban fulfillment centers and last-mile delivery.

• Infrastructure Development: Government-backed initiatives such as the Colombo Port City Project and upgrades to expressway connectivity are improving the logistical efficiency of moving goods within and outside the country. These investments have led to a 12% reduction in delivery time for key trade routes between 2021 and 2023.

• Rising Trade Volumes: With Sri Lanka positioned strategically along key maritime routes, there has been a 9% YoY increase in container throughput at Colombo Port in 2023, supporting growth in freight forwarding and transshipment services.

Which Industry Challenges Have Impacted the Growth for Sri Lanka Logistics and Warehousing Market

• Infrastructure Bottlenecks: Despite progress, inadequate last-mile connectivity and underdeveloped rural road networks remain persistent challenges. According to industry estimates, nearly 30% of logistics delays in Sri Lanka stem from poor road conditions and congestion in urban freight corridors. This hinders timely delivery and increases operational costs for logistics providers.

• Fragmented Market Structure: The logistics market in Sri Lanka is dominated by small and unorganized players with limited technological capabilities. Nearly 65% of logistics companies operate with less than 10 trucks or limited warehouse space, lacking the scale to meet modern service-level expectations. This fragmentation has restricted efficiency, visibility, and scalability across the supply chain.

• Rising Fuel Costs and Operating Expenses: Fluctuating fuel prices and high maintenance costs have significantly impacted profitability, especially for SMEs in the logistics sector. In 2023, fuel costs accounted for approximately 42% of total transportation costs, and any further increase risks compressing margins even further, particularly for non-integrated operators.

What are the Regulations and Initiatives which have Governed the Market

• National Logistics Policy (2021–2025): The Ministry of Transport and Logistics launched this initiative to streamline regulatory frameworks, improve multimodal integration, and encourage private sector participation. The policy targets a 25% improvement in logistics efficiency by 2025, with KPIs around cargo handling time, warehousing utilization, and cost reduction.

• Port Modernization and SEZ Development: Regulatory frameworks have been strengthened to fast-track development of Special Economic Zones (SEZs) and expand port infrastructure under Public-Private Partnership (PPP) models. The Colombo Port Expansion Project added over 2 million TEUs of capacity in 2023, supporting higher freight throughput and transshipment potential.

• Customs Digitization and Trade Facilitation: The ASYCUDA World system implemented by Sri Lanka Customs has significantly improved import/export processes, reducing average clearance times from 4.6 days in 2020 to 2.9 days in 2023. These reforms have encouraged cross-border logistics operators to scale services for international freight and bonded warehousing.

Sri Lanka Logistics and Warehousing Market Segmentation

• By Market Structure: The logistics market in Sri Lanka is largely dominated by unorganized players, particularly in road freight and small-scale warehousing, due to low entry barriers and high demand for informal services. These players often rely on manual operations and provide limited value-added services. However, organized players such as Hayleys Advantis and Expolanka Freight are expanding their presence, leveraging advanced digital tools, integrated services, and multi-client warehousing capabilities. Organized providers are gaining traction among industries like apparel, FMCG, and pharmaceuticals that demand end-to-end visibility and compliance.

• By Service Type: Transportation services account for the largest share of the logistics market, driven by increasing inland movement of goods via road. This is followed by warehousing services, which are growing due to the rising need for inventory management, especially from e-commerce and manufacturing clients. Value-added services like inventory labeling, kitting, cross-docking, and reverse logistics are emerging segments, showing higher demand from electronics, apparel, and 3PL customers.

• By Mode of Transport: Road transport remains the most utilized mode, accounting for over half the logistics volume due to the country's geographic layout and flexibility in last-mile delivery. Sea freight follows due to Sri Lanka’s strong port infrastructure, especially for transshipment and export-import flows. Air cargo plays a niche but critical role in time-sensitive industries like electronics and pharmaceuticals. Rail freight, though underutilized, holds potential for bulk cargo with recent infrastructure upgrades.

Competitive Landscape in Sri Lanka Logistics and Warehousing Market

The Sri Lanka logistics and warehousing market is moderately consolidated, with a mix of established players and emerging firms offering end-to-end logistics solutions. Leading companies such as Hayleys Advantis, Expolanka Freight, Aitken Spence Logistics, CL Synergy, and Dart Global Logistics dominate the organized segment. Meanwhile, several smaller, regionally focused logistics providers operate in niche or last-mile delivery segments.

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

• Hayleys Advantis: The company expanded its logistics footprint in 2023 by launching a modern multi-client warehouse in Biyagama, aimed at FMCG and apparel clients. Hayleys also introduced real-time cargo tracking solutions, enhancing its value proposition for large-scale exporters.

• Expolanka Freight (EFL): EFL strengthened its position in international freight forwarding with double-digit growth in its air and ocean freight volumes in 2023, supported by global trade recovery. It also expanded value-added services like customs brokerage and warehousing automation.

• Aitken Spence Logistics: A pioneer in contract logistics, the firm introduced automated inventory management systems in its central warehouses in 2023. This led to a 17% improvement in turnaround time for B2B clients across the pharmaceutical and electronics sectors.

• Dart Global Logistics: Known for its strong regional coverage and LCL (less-than-container-load) consolidation services, Dart Global saw increased demand from SMEs and e-commerce players, especially for cross-border fulfillment services.

• CL Synergy: The company recorded 12% growth in consolidated logistics revenues in 2023, fueled by expansion in its freight forwarding business and the opening of a new temperature-controlled storage facility catering to healthcare and food clients.

What Lies Ahead for Sri Lanka Logistics and Warehousing Market?

The Sri Lanka logistics and warehousing market is projected to expand steadily through 2029, driven by growing demand from e-commerce, manufacturing, and international trade. The industry is expected to register a healthy CAGR, supported by infrastructure investments, policy reforms, and digital transformation initiatives.

• Expansion of E-Commerce Fulfillment: With online retail expected to grow at over 20% annually, there will be a rising demand for urban fulfillment centers and last-mile delivery hubs, particularly in Colombo, Kandy, and Galle. Logistics players are anticipated to invest in automated sortation systems and on-demand delivery models to serve dynamic customer expectations.

• Development of Multimodal Infrastructure: Continued government focus on enhancing multimodal connectivity—including road, rail, sea, and inland waterways—will improve cargo movement efficiency and reduce transportation costs. Projects like the Central Expressway, Port Access Elevated Highway, and upgrades to Colombo Port East Container Terminal will play a pivotal role.

• Digitalization and Supply Chain Visibility: Logistics providers are increasingly investing in real-time tracking, warehouse automation, and IoT-based fleet management systems. This digital shift is expected to improve operational efficiency by 15–20%, enhance transparency, and offer integrated solutions to enterprise customers.

• Growth of Cold Chain and Specialized Logistics: With increasing demand from pharmaceuticals, food processing, and agribusiness sectors, the market will see growth in temperature-controlled logistics and specialized storage facilities. The cold chain segment is projected to grow rapidly, supported by foreign investment and government initiatives for food security.

Future Outlook and Projections for Sri Lanka Logistics and Warehousing Market on the Basis of Revenues in USD Billion, 2024-2029

Sri Lanka Logistics and Warehousing Market Segmentation

• By Market Structure:

  • Organized Logistics Providers

  • Unorganized/Informal Freight Operators

  • Third-Party Logistics (3PL) Companies

  • Contract Logistics Providers

  • Freight Forwarders

  • E-commerce Last-Mile Delivery Firms

  • Cold Chain and Temperature-Controlled Logistics

• By Service Type:

  • Transportation Services

  • Warehousing Services

  • Value-Added Services (e.g., Packaging, Cross-Docking, Labeling)

  • Inventory Management

  • Freight Consolidation and Distribution

• By Mode of Transport:

  • Road Transport

  • Rail Transport

  • Sea Freight

  • Air Freight

  • Multimodal Logistics

• By End-User Industry:

  • Apparel and Textiles

  • FMCG and Retail

  • Pharmaceuticals and Healthcare

  • Electronics and Consumer Durables

  • Agriculture and Food Processing

  • Automotive and Industrial Equipment

  • E-commerce

• By Region:

  • Western Province (Colombo, Gampaha, Kalutara)

  • Central Province (Kandy, Matale)

  • Southern Province (Galle, Matara, Hambantota)

  • Northern and Eastern Provinces

  • North Western Province (Kurunegala, Puttalam)

Players Mentioned in the Report:

• Freight Forwarding Companies
• Aitken Spence Cargo Pvt Ltd
• Advantis Express Pvt Ltd
• Aramex Lanka Pvt Ltd
• CMB Freight Lines
• C L Synergy Pvt Ltd
• Dart Global Logistics Pvt Ltd
• 20Cube Logistics
• Transco Cargo Sri Lanka
• Seacare Forwarders Pvt Ltd
• MSA Shipping Pvt Ltd
• Universal Freighters International Pvt Ltd
• McCallum Cargo
• Omni Logistics
• Gex Logistics
• Capital Express Logistics
• MSK Logistics
• Colombo Express
• Air Tiger Express
• Ace Cargo Pvt Ltd
• ASL Logistics CMB Pvt Ltd
• Benchmark Logistics International Pvt Ltd
• MCS Logistics International Pvt Ltd
• Rays International Shipping Pvt Ltd
• Salota International Pvt Ltd
• Sinetro Logistics International Pvt Ltd

Warehousing Companies

• Aitken Spence Logistics
• Abans Logistics Pvt Ltd
• McLarens Containers Pvt Ltd
• D P Logistics Pvt Ltd
• DGL Supply Chain Solutions Pvt Ltd
• EFL Global Freeport Pvt Ltd
• Free Port Logistics Pvt Ltd
• Logistics Park Pvt Ltd
• Maersk Sri Lanka
• DNS Warehouse Pvt Ltd
• One Union Solutions

E-Commerce Logistics Companies

• Grasshoppers
• Simplex Delivery
• RapidZend
• Trico Global
• VS One
• Shipping Lanka
• Yusen Logistics Sri Lanka
• Daraz Express
• Royal Express
• Pathao Sri Lanka

Express Logistics Companies

• DHL Express Sri Lanka

• FedEx Sri Lanka

• UPS Sri Lanka

• Aramex Lanka Pvt Ltd

• Advantis Express Pvt Ltd

• Ace International Express Pvt Ltd

• Capital Express Logistics

• Royal Express

• Lanka Express Logistics

• Express Logistics Worldwide Pvt Ltd

Key Target Audience:

• Logistics and Freight Companies

• E-commerce and Retail Companies

• Manufacturing and Export-Oriented Industries

• Cold Chain and Healthcare Supply Chain Stakeholders

• Investment and Infrastructure Development Firms

• Government Bodies (e.g., Ministry of Transport and Highways, BOI)

• Port and Customs Authorities

• Technology Solution Providers for SCM and Warehousing

Time Period:

• Historical Period: 2018–2023

• Base Year: 2024

• Forecast Period: 2024–2029