Calls for free export of copper scrap:
Kelani Cables invests Rs. 100 m on new product
Kelani Cables will invest Rs. 100 million this year on a new line of
cables, which is not manufactured in Sri Lanka so far.
MODERN: Cable manufacturing at the factory. Picture by Saliya
Managing Director of Kelani Cables Hemantha Perera told Daily News
Business they are planning to manufacture a new line of cables this
“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
“There should be a permanent link with local metal industrialists and
copper scrap producers such as copper cable manufacturers to supply
“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.