Sri Lanka’s steel industry has reached a landmark moment with its entry into the Canadian construction market, signalling fresh potential for the sector to become a competitive player in the global steel trade. The milestone was marked yesterday (7) at the Colombo Port with the first shipment of reinforcement steel by MELWA, one of the nation’s leading steel manufacturers.
The Export Development Board (EDB) Chairman, Mangala Wijesinghe, hailed the move as “the beginning of a long-lasting journey in the export industry” and a unique opportunity for Sri Lanka to make its mark in the global steel sector. He stressed that sustained monthly exports to Canada could significantly enhance the country’s export earnings and global industrial presence.
Current State of Sri Lanka’s Steel Industry
Sri Lanka’s steel sector is valued at over USD 1 billion annually, driven mainly by domestic demand for construction and infrastructure projects. The country imports much of its raw steel—primarily billets and scrap—from India, China, and the Middle East, while local manufacturers focus on processing, rolling, and producing reinforcement bars, wire rods, and structural steel.
According to the Central Bank’s 2024 trade data, Sri Lanka imported around 600,000 metric tons of iron and steel products worth USD 850 million, while exports remained modest at just over USD 40 million, largely consisting of fabricated steel products to markets in the Maldives, India, and East Africa. The MELWA–Canada deal, involving an initial 15,000 metric ton shipment, represents a significant boost to this small but growing export base.
A Strategic Breakthrough
MELWA’s Canadian debut is strategically significant. The shipment includes specially engineered 15-metre and 18-metre reinforcement bars—tailor-made for large-scale Canadian infrastructure projects and compliant with both British and Canadian standards. This is the first time Sri Lanka has produced such specifications for an overseas market, highlighting the industry’s growing technical capabilities.
P.P. Muruganadhan, a MELWA director, noted that this achievement is the result of heavy investment in ISO-certified manufacturing processes, advanced testing facilities, and ongoing research and development. “This shipment is more than a corporate win—it’s a national milestone, proving Sri Lanka can compete in one of the world’s most demanding construction markets,” he said.
Economic Impact and Opportunities
Steel exports are not only commercially important but also strategically vital for Sri Lanka’s trade balance. With the country seeking to narrow its persistent trade deficit—recorded at USD 4.9 billion in 2024—high-value industrial exports like steel can play a key role in generating foreign exchange. Regular shipments to Canada could contribute an estimated USD 15–20 million annually in export revenue, with potential to scale up if the brand gains traction in other North American markets.
Industry analysts note that success in Canada could open doors to the United States, where demand for high-quality steel in infrastructure renewal is projected to remain strong for the next decade.
The MELWA breakthrough comes as the government, in partnership with the EDB, is pushing to diversify Sri Lanka’s export basket beyond traditional goods like tea, apparel, and rubber. If sustained, this initiative could position Sri Lanka as a niche supplier in the competitive global steel market—an industrial transformation that would mark a new era for the nation’s manufacturing base.
