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| Thursday, 24 June 2004 |
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Over 50,000 lose jobs : Check export of metal scrap to India By Shirajiv Sirimane Over 50,000 people have lost their jobs due to export of copper, brass, aluminium and lead (metal scrap) to India without value addition. Most of those affected are from Kandy, Gampaha and Malabe. According to Manager, Small and Medium Enterprise Developers (SMED) a project of the Federation of Chambers of Commerce and Industry and Friedrich Naumann Stiftung, M. N. R. Cooray they have conducted several surveys in this regard and this is a serious problem that needs urgent attention. Most of them were utilising Copper, brass, aluminium and lead as raw materials to produce ornamental items for the local and export markets. He said that copper wires and aluminium (used in kitchens) and other metal objects are being exported. The 'bottle man' is the go between to collect these products from homes. He then sells them to the junk shop that supplies them to exporters. He said that several laws to check this situation were introduced but without success. The merchant (exporter) finds loopholes in the law, exploits the India Sri Lanka FTA and exports the scrap to India. Due to the export demand for these items the prices in the local market have soared and this has resulted in the local manufacturers being unable to buy the high prices. The local manufacturer has seen an increase of around 35 to 40 percent and due to this he has lost his competitive edge. "This is why most of the small time manufacturers have closed down," he said. Cooray said that in the Northeast it is a completely different story. "None of the copper, brass, aluminum and lead waste is allowed to be transported out of the region. Due to this the industry is progressing smoothly in the Northeast. He said that in a bid to safeguard the small and medium sector industrialists the SMED organised a series of events in the recent past. "One of the main projects we have undertaken was to find trade partners and a market for the small time industrialists," he said. The SMED conducts regular workshops and seminars. At these events small timer has the opportunity to meet top businessmen and form alliances. "This project is called the Enterprise development project for incubators. Managing Director Bopitiya Motors, B. K. Jude F. Rodrigo, one of the largest motor vehicle spare part manufacturers in Sri Lanka, said that he found a sub contractor at one of these seminars. The sub contractor, D. S. B. Chandana from Laksha Metal Industries, Kamburupitiya manufactures bronze bushes for gearboxes and the items are of very high quality. The owner, Chandana said that he was about to close his industry as he had no manpower and capital to do sales and get involved in the manufacturing process. "I am thankful for the incubator project for saving my industry where over 15 people are directly employed," he said. Rodrigo said that he was pleased that he could get a better quality item from local manufacturer who is more reliable and could adjust according to industry requirements. |
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