Sri Lankan Publisher Wijeya Newspapers Diversifies to Survive Economic Crisis
Colombo, Sri Lanka – Facing a dramatic decline in print circulation and advertising revenue following the COVID-19 pandemic and a severe economic downturn, Wijeya Newspapers, a leading Sri Lankan media group, has embarked on a remarkable diversification strategy. From launching an education institute to building a nationwide logistics network, the publisher is transforming its operations to ensure long-term sustainability. This story examines how Wijeya Newspapers is navigating unprecedented challenges and forging a new path forward.
The Precipitous Decline in Print Revenue
Sri Lanka’s newspaper industry experienced a period of robust growth until 2015. However, the combined impact of the COVID-19 pandemic and subsequent economic instability triggered a significant downturn. Circulation figures plummeted as lockdowns and economic hardship curtailed readership. Wijeya Newspapers, publisher of over 13 titles in English, Sinhala, and Tamil – including Sri Lanka’s first Braille newspaper for visually impaired students – was not immune to these pressures.
Despite increasing newspaper prices, the company managed to retain approximately 85 percent of its peak COVID-era circulation revenue, amounting to around LKR 3 billion (approximately $9.7 million USD). The real blow came from a steep decline in advertising revenue, which fell from LKR 5 billion ($16.2 million USD) to roughly LKR 2 billion ($6.5 million USD). “Before COVID, our presses ran seven days a week, because our Sunday newspaper alone exceeded 400 pages with over 100 pages of classifieds,” explained Janaka Rathnakumara, COO of Wijeya Newspapers, during the Indian Printers Summit in Delhi. “But after COVID and Sri Lanka’s economic crisis, we couldn’t even import paper or ink, and print volume fell dramatically.”
A Multi-Pronged Approach to Sustainability
Recognizing the urgent need for change, Wijeya Newspapers adopted a strategy of diversification, seeking to leverage existing assets and explore new revenue streams. The core challenge, as Rathnakumara stated, was “business sustainability.” This led to a series of innovative initiatives, including the launch of Times School of Higher Education, offering undergraduate and postgraduate programs.
In a particularly resourceful move, the company repurposed its printing facility. Staff were shifted to produce exercise books from 9 am to 5 pm, with newspaper printing resuming at night. Within a year, this venture propelled the company’s exercise book brand to become the third largest in the Sri Lankan market. Alongside these efforts, Wijeya Newspapers also focused on strengthening its digital presence through websites, mobile apps, and social media platforms. However, Rathnakumara acknowledged that “digital revenue remains minimal and that’s why sustaining print remains essential.”
From Fleet to Fortune: The Rise of Reach Transport Service
Perhaps the most transformative initiative has been the launch of Reach Transport Service, a collaborative distribution model that capitalizes on the company’s existing truck fleet. The service aims to convert the newspaper delivery network into a commercial logistics operation, providing reliable transport and courier services across Sri Lanka. Reach’s four key objectives are to establish a commercial logistics network, deliver dependable transport solutions, leverage the Wijeya Newspapers brand, and maintain operations 362 days a year.
“When print volumes dropped, I looked for ways to use the empty space in our vehicles,” Rathnakumara explained. “We started collaborating with other businesses to transport their products along with our newspapers.” Initial partnerships included Toyota Lanka for spare parts delivery and Daraz (operated by Alibaba/Amazon), Sri Lanka’s leading e-commerce platform, for line-haul services. The process involves loading parcels onto trucks first, followed by newspapers, ensuring timely morning deliveries and return trips for partner shipments. Subsequent collaborations expanded to include Plenty Foods and Singer Sri Lanka.
These are primarily business-to-business (B2B) line-haul operations, with plans to expand into first-mile and last-mile delivery services. What began as a crisis response has evolved into a significant growth driver. Initially showing no financial growth, Reach generated LKR 50 million (approximately $162,000 USD) in 2022, increasing to LKR 75 million ($244,000 USD) in 2023-24, and reaching LKR 80 million ($260,000 USD) in 2024-25.
Maximizing Resources and Reducing Overhead
Wijeya Newspapers has demonstrated a remarkable ability to optimize resource utilization. The company leverages its Sunday newspaper distribution fleet – which requires additional trucks due to the large page count (around 400 pages per edition) – by utilizing these vehicles for exclusive deliveries on weekdays. Even vehicles used for staff transport are now employed for city tours and airport transfers.
The impact on the bottom line is substantial. Transportation, once a cost center, now generates approximately LKR 7.5 million ($24,400 USD) in monthly revenue through Reach. Crucially, over 90 percent of transport costs are now covered by external businesses. Overheads have been reduced from LKR 300 million in 2022 to around LKR 205 million, resulting in monthly savings of approximately LKR 95 million ($309,500 USD) through Reach and the notebook manufacturing plant.
What challenges do media companies face when attempting to diversify revenue streams in rapidly changing economic climates? How can established brands leverage existing infrastructure to create new business opportunities?
Frequently Asked Questions About Wijeya Newspapers’ Transformation
A: The primary driver is the significant decline in print circulation and advertising revenue following the COVID-19 pandemic and Sri Lanka’s economic crisis.
A: Reach Transport Service has grown from generating no initial revenue to LKR 80 million (approximately $260,000 USD) in 2024-25, becoming a significant revenue stream.
A: Wijeya Newspapers launched Times School of Higher Education and established a notebook manufacturing plant, in addition to strengthening its digital presence.
A: By leveraging its existing fleet for the Reach Transport Service and through the profitability of the notebook manufacturing plant, Wijeya Newspapers has reduced overheads from LKR 300 million to LKR 205 million.
A: Plans include increasing fleet utilization to 95%, expanding beyond the Western Province, and developing first-mile and last-mile delivery services.
Disclaimer: This article provides information for general knowledge and informational purposes only, and does not constitute financial or business advice. Readers should consult with qualified professionals for specific guidance.
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