On October 22, 2025, Hayleys PLC announced its entry into Sri Lanka’s supermarket sector, unveiling plans to launch 100 outlets across the country. For a 148-year-old conglomerate known for its industrial and export strength, this move marks a significant shift toward consumer-facing retail. It also signals a broader recalibration of corporate strategy in Sri Lanka, especially when viewed alongside recent share market activity by Hayleys’ controlling shareholder, Dhammika Perera.
This expansion is not simply about entering the grocery business
It reflects a deliberate attempt to consolidate supply chains, deepen brand presence, and compete directly with established supermarket players such as Cargills, Keells, and Arpico. The timing is notable. Sri Lanka’s retail sector is stabilizing after years of economic turbulence, and consumer demand is gradually shifting toward quality, reliability, and convenience. Hayleys appears poised to meet that demand with scale and operational depth.
The announcement follows a series of strategic moves by Dhammika Perera that suggest a reallocation of capital toward high-growth, operationally controlled sectors. Earlier this month, Perera sold Rs. 5.5 billion worth of shares in Commercial Bank and offloaded a 5 percent stake in Seylan Bank to Raynor Silva for Rs. 1.57 billion. These exits from financial holdings were followed by a Rs. 2.57 billion acquisition of a 40.58 percent stake in Harischandra Mills; a century-old FMCG brand with strong consumer loyalty.
The Harischandra acquisition is particularly relevant. It gives Hayleys direct access to a portfolio of staple products coffee, flour, noodles that are already trusted by Sri Lankan households. These products are likely to feature prominently in Hayleys’ new retail outlets, allowing the company to bypass third-party suppliers and control both pricing and placement. In effect, Hayleys is building a vertically integrated retail model, one that spans production, packaging, distribution, and point-of-sale.
For existing supermarket chains, this presents a new kind of competition. Hayleys enters the market not as a pure retailer, but as a conglomerate with deep manufacturing and logistics capabilities. Its ability to stock shelves with in-house products, manage inventory efficiently, and leverage existing infrastructure could pressure rivals to rethink their supply chain strategies. The race for prime retail locations may also intensify, especially as Hayleys begins to secure space for its 100 planned outlets.
At the same time, Hayleys’ entry could benefit Sri Lankan FMCG producers
A new retail network means more shelf space, and Hayleys may prioritize local sourcing to differentiate its offering. Smaller brands could gain visibility, especially if they align with Hayleys’ sustainability and quality standards. The company’s global export channels may also open doors for domestic producers looking to scale beyond Sri Lanka.
From a consumer perspective, the move promises greater choice and potentially better pricing. Hayleys’ reputation for quality and service could raise expectations across the sector, prompting competitors to improve store experience, product curation, and customer engagement. If executed well, this expansion could redefine what supermarket shopping looks like in Sri Lanka moving beyond discounts and promotions toward a more curated, reliable retail experience.
However, retail is a complex and competitive space. Success will depend on Hayleys’ ability to adapt to consumer behavior, manage operational costs, and build a retail brand that resonates with everyday shoppers. The company will need to recruit and train retail talent, navigate zoning and regulatory requirements, and ensure consistency across its outlets. The transition from industrial supplier to consumer retailer is not guaranteed, and execution will be critical.
Still, the strategic logic is clear. Hayleys is leveraging its existing strengths manufacturing, logistics, brand equity to enter a sector with long-term growth potential. Dhammika Perera’s recent share market moves suggest confidence in this direction, with capital flowing out of financial institutions and into operational assets. For Sri Lanka’s business community, this signals a shift in priorities: from passive investment to active market participation.
In the months ahead, the rollout of Hayleys supermarkets will be closely watched. It represents not just a new retail player, but a test case for conglomerate-led consumer engagement. If successful, it could inspire similar moves from other industrial giants, further blurring the lines between production and retail. For FMCG brands, investors, and consumers alike, this is a development worth tracking, not just for its scale, but for what it reveals about the future of Sri Lankan business.
