Electronics industry

Sri Lanka has always been known for its traditional exports such as tea, rubber and coconut. These have been the mainstay of the economy or many decades. But non-traditional exports are rising at a fast pace.

One example is the electronics industry. Even 15 years ago, many would have dismissed the idea of Sri Lanka being an electronics hub. Now the tide has changed in our favour and the Lankan electronics industry has posted a 30 per cent growth. Most of the electronics industry's output is exported, but there are several companies which make electronic components and products solely for the domestic market.

The growth of the electronics industry augurs well for the country's economy especially in the context of the Indo-Lanka Free Trade Agreement whereby Sri Lanka can gain access to the Indian market.

The Sri Lanka Electronics Manufacturing and Export Association has expressed confidence that the Lankan industry can establish viable linkages with the Indian electronics giants.

This is an exciting development and the possibilities are endless because India is fast becoming a manufacturing hub for everything from cars to consumer electronics. All the major names in every industry - auto, consumer goods, medical equipment, and industrial equipment - have established a presence in India.

Electronic components have become vital for all these products and the Sri Lankan electronics makers are ideally placed to supply that surging demand.

This requires commitment and efficiency and above all, strict adherence to quality standards as these companies require nothing but the best, on time. Sri Lanka's electronics industry must strive to improve these areas to compete with some of the emerging competitors.

The electronics industry must not confine itself to the mere assembly of components. Countries such as India and Malaysia have attracted leading consumer electronics firms who manufacture a range of items in these countries. Most Japanese companies have shifted their plants away from Japan mainly due to high taxation and labour costs there.

Sri Lanka thus offers a very competitive environment for such companies. The local electronics industry, together with any principals they represent, must argue the case.

One also tends to think that the electronics industry is all about the manufacture of physical products. We often overlook the burgeoning software industry which has also become a major foreign exchange earner for the country. Several leading software companies have offices and research facilities in Sri Lanka. All incentives must be granted for the local software industry to flourish.

Hardware or software, research is essential for the development of local industry. The local electronics and software industries must tie-up with the universities in the sphere of research, as in other countries. This way, the industry will not only have a steady stream of innovative employees but also make a more positive contribution to the economy.