CABLE SECTOR
Harsha Jayatunga
THREADS OF TRANSFORMATION
Behind the scenes of growth – powering progress and connecting futures
Trends shaping the cable manufacturing sector in Sri Lanka
Adoption of advanced technologies and digitalisation, together with export orientation and diversification.
Evolution of the demand for cables over the past two years
Driven by infrastructure, housing, renewables and digital growth, the cable market has witnessed robust
and diversified demand – especially for power, solar, aluminium and data cables.
Role of infrastructure development in driving sector growth
Infrastructure development drives the sector’s growth by boosting demand across power, utility, construction and renewable energy sectors, while spurring local production and investment.
Local impact of the global supply chain crisis
It has strained local cable manufacturers through material shortages, volatile prices and logistics disruptions, leading to reduced profitability and supply delays.
Cables that exude greater demand
Driven by the green energy shift and export opportunities, demand is rising for photovoltaic (PV) solar cables, fire rated cables and cables complying with international standards specific to the relevant importing country.
Importance of sustainability in cable manufacturing
Utilising eco-friendly materials to minimise environmental impacts and energy efficient production processes – and following the principles of the circular economy wherever possible.
Emerging innovations in cable manufacturing
New materials with higher product performance and process improvement for shorter lead times.
Competitiveness in the local market for cable products
The market is highly competitive – shaped by local players, aggressive price competition, and mounting pressure from imports and various malpractices such as HS Code (harmonised system code) manipulations on imported cables.
Challenges of sourcing raw materials locally
Limited availability and high costs mean that most raw materials must be imported with copper and aluminium – the key conductor material – subject to highly volatile prices. So the local cable sector is heavily reliant on imported raw materials.
Impact of international standards on local production
Compliance with international standards compels local cable manufacturers to adopt stringent design, testing and quality practices aligned with global benchmarks, ensuring reliability and export readiness.
Cable manufacturers’ focus on export markets
In response to the post-COVID-19 economic downturn, local cable manufacturers have shifted focus to export markets by securing international certifications for global access.
Key barriers to scaling production
High capital investment, limited demand for the finished product locally due to limited construction activity and investments in infrastructure development in the country.
Adapting to fluctuating copper and aluminium prices
By adjusting selling prices and discount rates in line with market changes.
Impact of renewable energy projects on cable demand
Renewable energy projects are driving higher demand for solar, wind, submarine, armoured and low-voltage direct current (DC) cables.
Effect of smart technologies on cable design
They are reshaping cable design by enabling integrated power and data transmission, real-time feedback, and increasing resistance to chemicals, abrasion, electromagnetic interference and fire hazards.
Role of R&D in maintaining competitiveness
R&D sustains competitiveness by driving product innovation, cost efficiency and global market access, by means of compliance with international standards, high-performance cables such as flame retardant, low smoke halogen free and solar variants.
Technical talent in the sector
The sector faces a shortage of technical talent particularly in electrical, mechanical, process and materials engineering, as well as quality and compliance expertise.
Cost impact on manufacturing efficiency
Manufacturing efficiency reduces operational costs while promoting process optimisation, energy saving technologies and sustainable compliant practices.
Ensuring product quality and safety
Local manufacturers ensure product quality and safety through rigorous verification at every stage of production, and strict adherence to national and international standards.
Counterfeit or substandard products in the market
Such cable products – often smuggled and mislabelled with copper clad aluminium, incorrect insulation and false voltage ratings – pose serious concerns in the market.
State support to support sector growth
Government support through infrastructure investment, renewable energy promotion, export incentives, strict quality regulation, customs vigilance and transparent policies is vital to drive sector growth.
