Calls for free export of copper scrap:

Kelani Cables invests Rs. 100 m on new product

Anjana Samarasinghe

Kelani Cables will invest Rs. 100 million this year on a new line of cables, which is not manufactured in Sri Lanka so far.

Managing Director of Kelani Cables Hemantha Perera told Daily News Business they are planning to manufacture a new line of cables this year.

“We are targeting the local market and the international market for this new range of cables. Through this new project, the company expects to be a unique cable manufacturer in the country,” he said.

He also suggested that the Government should allow free export of copper scrap for cable manufacturers to save foreign exchange.

“Nearly 300 metric tonnes of copper scrap accumulates in the local copper cable manufacturing industry per year”.

Scrap metal is used by local industrialists and the Government has imposed a CESS on export of scrap metal for continuous supply of raw materials for local metal industrialists. After fulfilling the domestic copper scrap requirement the country could export the balance scrap copper.

“There should be a permanent link with local metal industrialists and copper scrap producers such as copper cable manufacturers to supply copper scrap.

“These companies could export their balance scrap without disturbing local industrialists,” Perera said.

“We import copper according to the London Metal Exchange prices where duty and VAT are paid. At present we procure copper rods at US$ 7,250 per metric tonne.

We are in a position to export copper scrap at US$ 6,000 which is a massive 83 per cent of the raw material price,” he said.

Perera said the country needs to maintain quality standards when importing cables to the country. Some countries have specified quality standards of cables that should be imported to their countries, which prevent substandard products coming.