Top 25 Profitable Business Ideas in Sri Lanka for 2023

Do you want to start a small business in Sri Lanka? Find here a list of chosen profitable investment opportunities in Sri Lanka for your ready reference.

Basically, Sri Lanka is an island country. The country is located in the area of the Indian ocean. The capital of the country is Colombo. Most of the people in Sri Lanka use English, Tamil, and Sinhala for communication with each other.

Generally, the economy of the country has mostly had strong growth rates in recent years. Currently, the country is focusing on long-term strategic and structural development challenges as it strives to transition to an upper-middle-income country.

According to the Global Competitiveness Report, Sri Lanka’s economy is transitioning from the factor-driven stage to the efficiency-driven stage. Hence, it makes the country ranks 52nd in global competitiveness.

List of 25 Small Business Ideas in Sri Lanka

#1. Agriculture

Basically, the country’s economy depends hugely on agriculture. Some of the specific items like tea, rubber, and cinnamon are the most important products here. Additionally, these items have good export potential also. Animal husbandry or livestock farming is also getting immense popularity nowadays.

Related: Most Profitable Agriculture Small Business Ideas 

#2. Backyard Plant Nursery

If you love gardening, you can start a backyard plant nursery in Sri Lanka. This is a low-cost and profitable business. However, you must have some space for this business. Selecting plants is the most crucial aspect of this business. You must keep the plants according to the local market demand. Also, you can start and operate the business on a part-time basis initially. Read More…

#3. Cell Phone Repair

Cell phone demand and population are increasing very fast. And after the warranty period, people look for an affordable local repair service for fixing their phones. Even, if you don’t have repairing skills, you can visit classes to gather knowledge.

Generally, this type of business offers services like repairing cell phones, smartphones, iPhones, tablets, etc. In addition to that, you can offer several specific repair services too. Read More…

#4. Export-Import

Export-import is one of the most prominent business sectors in Sri Lanka. The country is the 81st largest export economy in the world. The top export items of Sri Lanka are Tea, Women’s Undergarments, rubber, cinnamon, etc. Its top imports are Planes, Helicopters, and/or spacecraft, Refined Petroleum, Cars, Crude Petroleum, and Light Rubberized Knitted Fabric.

Some of the top export destinations of Sri Lanka are India, the United States, the United Kingdom, Germany, and Italy. The top import origins are India, China, Japan, France, and the United Arab Emirates

#5. Information Technology

Sri Lanka is ranked among the top 50 outsourcing destinations by AT Kearney. Some of the most lucrative IT sectors are business process outsourcing, knowledge process outsourcing, software development, IT Services, and IT education. Hence, it is needless to say, the country is one of the best destinations for starting a business in the information technology sector.

Related: Lucrative Business Ideas for Information Technology Professionals

#6. Jeans Making

The Govt. encourages the small-scale sector of the country. Additionally, there are several schemes you can avail of assistance from the Government. If you want to start a small business in the clothing and apparel segment, you can consider starting a jeans manufacturing business.

With proper planning and substantial capital investment, jeans manufacturing projects can be initiated on a small-scale basis. Read More…

#7. Real Estate & Construction

The property industry broadly covers the areas of rents, domestic housing, capital market, office space, retail and industrial space. As confidence returns to real estate, the industry faces a number of fundamental shifts that will shape its future. Moreover, the sector offers several service-based business opportunities to aspiring entrepreneurs. Read More…

#8. Retail

Retail is another growing sector in Sri Lanka. However, you must have a retail space in a prominent location. Otherwise, you can also consider getting a retail space for rent. As tourism is one of the most important revenue-earning sectors in the country, you can find several retail business opportunities there. Read More…

#9. Tourism

Tourism is one of the main industries in Sri Lanka. Major tourist attractions are focused on the island’s famous beaches located in the southern and eastern parts of the country. Additionally, ancient heritage sites are also popular in the country.

Hospitality and tourism are vast areas providing different types of services. It includes broadly restaurants, restaurant chains, food services, hotels, transportation, photography, business and leisure travel, holiday destinations and activities, camping, and the cruise industry. Read More…

#10. Transportation Business

Transport business opportunities are emerging globally nowadays. Transportation is one of the world’s largest industries. Different types of specific demands with changing lifestyle habits have introduced several innovative and profitable startup opportunities in the transport industry. Read More…

More Low-Cost Small Business Ideas in Sri Lanka

#11. Recruitment Agency
#12. Translation Agency
#13. Event Management
#14. Car Repairing Services
#15. Auto Spare Parts Store
#16. Courier Services
#17. Food Truck
#18. Creer Counseling Service
#19. Salon Business
#20. Open a Restaurant

Home-Based Online Business Ideas in Sri Lanka

Below we list down the best small online businesses you can start online in Sri Lanka:

#21. Start a Blog
#22. Affiliate Marketing
#23. Freelance Writing
#24. Dropshipping
#25. Web Design Services

After selecting your business idea, you need to register your company. Sri Lanka has seen a rise in small startups in the last decade. If you are the next one looking forward to starting a company here, find below the options to be explored.

How to Start a Company in Sri Lanka, Sinhala

There are several types of business structures offered by authorities for startups in Sri Lanka. The most popular among beginners is a sole proprietorship, partnership, and limited liability company.

The procedure of forming a sole proprietorship is more or less similar to other countries in the world. You will be solely responsible for all the liabilities incurred by the firm. This is the easiest option to start a company in Sri Lanka.

The partnership business structure is almost similar to a sole proprietorship. The significant difference is that you can have multiple owners.

Limited Liability Company is the most popular business structure among startups. This structure allows a minimum of one director and two shareholders. There is no need for minimum share capital.

Sri Lanka is a small country. However, the business sector is famous for agriculture, plantation, export, food processing, and telecommunications. We hope this list of profitable small business ideas in Sri Lanka will help you in making an informed decision to start your own business venture.

FAQs

What products are in high demand in Sri Lanka?

Some of the most in-demand products are as follows:

• Ceylon Tea
• Consumer electronics products
• Rice, vegetables, and fruit.
• Clothing and textiles
• Pharmaceuticals and medical supplies
• Coconut & Coconut-based Products
• Spices, Essential Oils & Oleoresins.

What are the top 3 imports of Sri Lanka?

The top there products that Sri Lanka imports are the following:

• Petroleum,
• Textile fabrics
• Food Items

What is Sri Lanka famous for producing?

The biggest item that Sri Lanka exports are tea, textiles, and garments. In addition, the other major export items are spices, gems, fish, coconut products, rubber, and fish.