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| Tuesday, 3 February 2004 |
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Three-wheeler export orders hit due to lack of standard certificate by Irangika Range Sri Lanka has received an order for 216 three wheelers from the United States and Sudan, Sri Lanka's only three wheeler manufacturer Alba Lanka Industries (Pvt) Ltd, said. This is the first export order for three-wheelers from Sri Lanka. However the manufacturer is faced with a major problem as Sri Lanka has no authority to issue an Emission Standard Certificate (ESC) which is a must for vehicle imports to both countries. Chairman and Managing Director of Alba Lanka Industries (Pvt) Ltd M. Y. M. Nassar said there is no proper authority in Sri Lanka to issue this certificate. "We have made representations but no positive response had been received," he said. The Alba Group of Companies is a well-established organisation in the field of three-wheeler and two-wheeler spare parts. Having started operations 20 years ago, the company decided to pursue backward and forward integration of the company operations. In order to implement this, the company incorporated a new company called Alba Lanka Industries (Pvt) Ltd to manufacture three-wheeler spare parts, which could be sold through the company's main dealer network. With the operation of the new company, the imports of spare parts have gradually reduced. The initial project cost was Rs.90 million of which Rs. 15 million had been financed under a SMI loan scheme channelled through the Seylan Bank. The Alba Group had infused the balance investment of Rs. 75 million. As a result of this investment Alba Lanka Industries opened a factory in 1998 in Wellampitiya, generating new employment opportunities for over 150. The maiden three-wheeler, manufactured with the experience of Nassar was on display at an exhibition at the Youth Service Centre, Maharagama in 2002. According to the high demand, he sold four three-wheelers in August 2002. The Alba Group, will also introduce a new technically superior Alba Classic three-wheeler to the local market to suit local roads and climatic conditions. Although there is a demand for 300 three-wheelers they can only manufacture between 50 and 60 per month. They manufacture 60 percent of the three-wheeler spare parts for local purchase and import the rest. Nassar said the local production should be encouraged to save foreign exchange. The government should prepare a viable policy to strengthen local manufacturers, he said. At present around 3,500 three-wheelers are imported to Sri Lanka per month, at a cost of around Rs. 70 million. Nassar said some facilities such as supplying electricity under an incentive method and bank loans with less interest will not boost local industries since there would be others who would get into this business. He said the government's plans to import three-wheelers duty free, if implemented, will completely destroy local industries." He welcomed more support to uplift the company standard to generate more jobs for the youth and added that he is looking forward to make fresh representations to the government to obtain the ESL certification since USA was considered a lucrative market. |
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