EDB organises inward buying mission for rubber products

by Anjana Samarasinghe

Export performance of rubber products has shown a remarkable growth during the past two years the Exports Development Board (EDB) said. Rubber finished products exports were 182 million in 2002, which increased in 2003 to US$ 230 million, and it was US$ 284.94 million in 2004.

With an objective of further developing the export of rubber products the EDB together with the Sri Lanka Embassy in France organised an inward-buying mission for rubber products in Sri Lanka.

Due to this programme, the export performance of rubber surgical gloves to France has increased during the past few months and in the last two years. It was Rs 400 million in January 2005 and increased to Rs 809 million in June 2005. The export earnings of rubber gloves was Rs 7575 million in 2003 and Rs 8339 in 2004.

As a result of first and second phases of the inward-buying mission which were held last year and this year Sri Lankan rubber products manufacturers were able to gain orders from many French companies. The third phase of the programme was held recently with the participation of nearly 20 local manufacturers and French household product company "La Brosse ET Dupont" (LBD).

Director EDB Indira Malwatte said that both the buyer and manufacturer will have the opportunity to meet each other face to face. This will help to build confidence in the both parties. If local manufacturer has to find a buyer by himself he needs to spend a lot of money.

Also he will have a clear idea about how he has to manufacture the products according to the buyer's need she, said. Under the inward-buying mission programme EDB expects to find buyers from different countries through Sri Lankan embassies worldwide. EDB will make arrangements to introduce these buyers for the suitable manufacturers in Sri Lanka.

Last year the EDB introduced Japanese gem merchants to Sri Lankan traders and 20 local gem suppliers were able to commence businesses with these buyers. Next year we hope to introduce auto part buyers to local manufacturers' she said.

Corporate Deputy Purchasing Director of LBD Geradud Combadieres said Sri Lankan rubber products are in good quality and most of the manufacturers are having required quality certifications.

Imports of local rubber products are free from duty and raw materials can be easily found in Sri Lanka, he said.

This is an ideal opportunity for us to meet the manufacturer directly. But if we import from China it is very difficult to access to the manufacturer directly, he said.

'There is good demand for rubber gloves and doormats in Europe. Our company specialises in supplying household products. At the moment we are manufacturing 25% of our products but we will reduce it for 5% due to high cost of labour. We will outsource most of our products in future', he said.