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by Channa Kasturisinghe

The five-year growth strategy formulated by the Government appointed sectoral task force for the rubber industry has emphasised the need to promote the rubber manufacturing sector in order to increase the value of rubber exports and increase the production of natural rubber to cater to the industry's demand.

The task force is planning to increase the export value of rubber and rubber based products from US$ 200 to US$ 800 annually and attract US$ 1.8 billion in new investment into the rubber products manufacturing industry by 2007.

The task force's efforts would be to generate a minimum value addition of US$ 80 million annually and to create 40,000 new employment opportunities.

The implementation of this Government and Private sector joint initiative would increase the production of natural rubber from the current capacity of 90,000 MT to 190,000 MT by 2014 and to maintain 200,000 hectares of land under rubber cultivation.

Damitha Dharmasena, Secretary of the Sri Lanka Rubber Cluster who presented the task force report to Enterprise Development, Industrial Promotion and Investment Promotion Minister Prof. G.L Peiris at the BMICH last week said that Sri Lanka's rubber industry was composed of three interdependent major sectors which needed to be promoted.

"They are the plantation industry including smallholdings, the rubber products manufacturing sector and the rubber wood based industry. The Rubber products manufacturing sector grew rapidly since 1970 and the rubber wood based industry is an important component to the industry due to the scarcity of forest wood.

The rubber products manufacturing sector recently emerged as a key contributor to manufacturing exports and the rubber plantation sector provides the vital raw material base for the rubber products sector.

At present the rubber industry's contribution to export earnings is about 4.5 percent. However, there is potential to increase it to 10 percent. Through the implementation of our growth strategies, the Task Force aims to achieve this goal, while capturing one percent of the global market for rubber and rubber products," Dharmasena said.

He said the key elements in a strategy to promote the sector included policy reform, supply side strengthening and consolidation, product positioning and an institutional support system. "A number of policy reforms would be necessary so that Sri Lanka can take advantage of developments in global markets.

A supportive policy framework designed to create an enabling business environment must augment the rubber products industry and the raw rubber industry and would encompass fiscal, forestry, energy, investment, legal, labour, environment and education policies," Dharmasena said.

He said the task force strategies would include the establishment of a Centre for Rubber Industry Competitiveness (CRIC) to promote value addition and marketing in the sector.

"It has also been proposed to set up a Rubber Industry Park and a Latex Rubber Repositioning program.

The mechanisms of a Society for Rubber Industry, Smallholder Regional Societies and Thurusaviya program will be implemented under the Institutional Support System," Dharmasena said.

In order to increase natural rubber production the Government is also planning to extend rubber plantations to non-traditional areas such as the Moneragala district.

Plantation Industries Minister Lakshman Kiriella told the Daily News that the Government would encourage rubber products manufacturers to set up factories in Moneragala to assist small holders to increase their income.

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