By: Staff Writer
September 29, Colombo (LNW): Sri Lanka’s coffee industry is experiencing a resurgence, driven by favorable geography, climate, and growing investments. The global specialty coffee market’s expansion is boosting the country’s potential as a key player.
By 2029, the Sri Lankan coffee market is projected to grow by 10.05%, reaching a market value of US $106.50 million. Revenue in 2024 is expected to be $6.64 million, with an annual growth rate of 8.79%, increasing to $10.12 million by 2029.
The Market Development Facility (MDF), an Australian initiative, is partnering with the private sector to support this growth by enhancing coffee production and improving sourcing and processing.
Coffee consumption in Sri Lanka is anticipated to rise slightly, from 7,000 metric tons in 2023 to 7,100 metric tons by 2028. However, production is expected to decrease from 36,000 to 35,000 bags during this period.
Despite these modest figures, the number of coffee consumers in Sri Lanka is projected to reach 630,100 by 2029, with smallholder farmers driving 80% of production.
Private equity specialists Ironwood Capital Partners, announced a partial exit from its investment in the Colombo Coffee Company group which also includes Barista Coffee Lanka.
A consortium of investors brought together by Capital Alliance Holdings Ltd. (CAL) has acquired a 20% stake in the group.
Colombo Coffee Company, Sri Lanka’s leading Coffee solutions provider, serves 4 out of every 5large hotels in the country. It represents renowned international coffee brands such as Lavazza,
LaCimbali, Gaggia, and also markets its locally-developed and sourced coffee brand, Toscana
Ceylon. Barista Coffee Lanka, part of the same group, is the largest coffee chain in the country with over 40 retail outlets.
Ironwood originally invested in Colombo Coffee Company in 2016, partnering with the management team to accelerate growth, drive innovation, and expand into new markets.
Ironwood Capital Partners Managing Partner Hiran Embuldeniya said: “Through the collective efforts of the group, we have achieved a market-leading position in both the B2B and retail coffee sectors.
Bringing along the CAL Consortium will help us cement our market position and help us expand into new areas. This investment reflects our commitment to driving long-term value creation. We look forward to the next chapter of growth for the group, and we remain confident in the company’s continued success.”
CAL Group CEO Kanishke Mannakkara said: “We are excited to be joining hands with ColomboCoffee Company and its shareholders. This company has emerged as a category leader within the coffee sector in Sri Lanka and has the potential to do exciting things in the future. We look forward to being a part of this story.”
Colombo Coffee Company Founder and Director Ajith Dias said: “This has been a long journey of over 20 years for us. I am proud to see Colombo Coffee Company today in a leadership position and bringing in the right partnerships has been key to that success. I look forward to the next chapter in our journey with our new partners.”
