Sri Lanka’s franchise sector garnered substantial international interest at the recent Sri Lanka Franchise Expo 2026. Over a dozen global brands explored expansion opportunities, positioning Sri Lanka as a key strategic market in South Asia.
A major highlight was the agreement between Franglobal and Fat Crab, a part of Don Stanley Holdings, to expand into India, particularly in the southern region known for its seafood culture. The plan includes opening up to 25 outlets across India by 2028, with subsequent expansion into Southeast Asia and the Middle East.
The expo, held on February 14 at Marino Beach Hotel in Colombo, attracted franchise principals from various continents. These principals connected with local entrepreneurs and investors who are seeking proven business models in a market where traditional startup risks remain high.
The event was inaugurated by Hon. Sunil Handunneththi, Minister of Industry and Entrepreneurship Development, alongside Ms. Devika Lal, Counsellor and Head of the Economic and Commercial Wing at India’s High Commission. Their presence highlighted the recognition of franchising as a structured approach to economic development, beyond conventional business expansion.
Minister Handunneththi expressed, “We appreciate Franglobal bringing together brands, investors, and industry leaders from Sri Lanka and India, particularly as our nation strengthens its entrepreneurship and industrial development. Franchising is a powerful vehicle for economic growth, innovation, employment, and SME development, including knowledge exchange and technology transfer. This event is a prime opportunity to deepen the economic and commercial ties between our countries.”
Ms. Devika Lal noted, “India and Sri Lanka share exceptionally strong economic fundamentals. India is Sri Lanka’s largest trading partner, second-largest export market, a leading source of tourism, and last year, fifty percent of Sri Lanka’s FDI came directly from India. The SME sector forms the backbone of both our economies, creating livelihoods, generating employment, and driving growth. This is an excellent time for bilateral investment, and events like the Franchise Expo are crucial for connecting our business communities and strengthening commercial cooperation between our nations.”
The initiative was supported by six major chambers and industry bodies: Indo-Lanka Chamber of Commerce, Ceylon National Chamber of Industries, International Chamber of Commerce Sri Lanka, Colombo Chamber of Commerce, Federation of Chambers of Commerce and Industry of Sri Lanka, and Indian Small Business & Franchise Association. This support underscores the institutional consensus on the economic potential of franchising.
International participants from sectors such as coffee retail, fitness, professional services, and quick-service restaurants found a more sophisticated audience than anticipated. Brands like Stellarossa, EasyGym, Coffeeshop Company, Action Coach, U Clean, Blenz Coffee, Tea Avenue, Impasti Pizza, Burgertory, Figaro’s Pizza, Barcelos, Yogurt Factory, and Orane International represented industries experiencing rapid growth in urban centers across Sri Lanka.
Gaurav Marya, Chairman of Franchise India Group, whose organization has collaborated with Sri Lankan stakeholders since the April 2025 Global Franchise Forum, commented on the evolving market readiness. “What distinguishes Sri Lanka isn’t just recovery metrics—it’s the caliber of entrepreneurs approaching franchise opportunities. These business operators possess capital discipline, international exposure, and clear scaling roadmaps, a rare combination in emerging markets.”
Several factors are driving franchisor interest. Despite its modest population of 22 million, Sri Lanka shows concentrated purchasing power in urban areas. The country’s geographic position between India and Southeast Asia offers strategic advantages. Additionally, legal frameworks regarding intellectual property and contract enforcement align with international standards. The recovery of the tourism sector is rejuvenating commercial district foot traffic, and the local business community shows a preference for structured operational systems over speculative ventures.
From the franchisee perspective, the value proposition lies in risk mitigation. In markets with constrained access to credit and high business mortality rates, acquiring a validated operating model with brand recognition and established supplier relationships significantly enhances survival prospects. For local investors accustomed to high-context, relationship-dependent business models, franchising offers standardized processes that can scale without increasing management complexity proportionally.
The active involvement of the Ministry of Industry and Entrepreneurship Development, beyond ceremonial roles, indicates government recognition that franchise development can accelerate job creation and formalize business practices across sectors. This alignment between private sector activity and public policy fosters conditions for sustainable development.
The expo’s timing follows the April 2025 Global Franchise Forum, which initiated dialogue between international brands and Sri Lankan stakeholders. The swift progression from exploratory discussions to concrete partnership negotiations within ten months suggests momentum that extends beyond event-driven interest.
