Probe on scrap metal exports issue

Anjana Samarasinghe

SCRAP METAL: Though the Government banned scrap metal exports in April for six months, scrap metal has been exported through some BoI companies.

Chairman of the Foundry Development Services Institute (FDSI), M. Samarasinghe, told the Daily News that the Government banned metal scrap exports for six months to safeguard local metal industrialists.

But some BoI companies export local scrap metal to India.

However the Minister of Industrial Development appointed a committee to probe the issue.

The committee has requested details on exports and imports from these BoI industries.

The committee has given two weeks time for these companies to respond.

Some BoI companies were exporting ingots made out of local scrap to India through their industries as finished goods.

Samarasinghe said these BoI companies import scrap and convert them in to ingots. This is a nearly 10% value addition which is done by utilising local scrap metals. Through the FTA, BoI companies could export these ingots without paying duty.

Due to these exports, local metal industrialists lose raw material for their manufacturing process. However local industrialists consume 500 tonnes of brass, nearly 300 tonnes of zinc, 500 tonnes of copper and nearly 15000 tonnes of scrap iron for their industries per month.

Through these scrap metals local industrialists manufacture finishing products which have 300% value addition.

Local industrialists too need to focus on increasing value addition in the metal industry for the development of the industry.

He said that Government should totally banned scrap metal exports to safeguard the industry. It is important to exclude scrap metal from the Indo-Lanka FTA, he added.

Samarasinghe also said that they have organised a seminar on the metal industry to educate industrialists on value addition and regulations on August 31.

All stakeholders including Government officials, and industrialists expect to take part in the seminar.