Slow growth for lubricant industry

Sanjeevi Jayasuriya

Kishu Gomes

The growth momentum of the lubricant market is slowing down and the recent adverse weather conditions have had a negative impact on the industry. “The lubricant market has shown slow progress due to subdued activities. The upward growth trend from last year has comedown in the first quarter. The industry is highly competitive and increasing volumes has been a difficult task,” Chevron Lubricants Lanka Managing Director Kishu Gomes told Daily News Business.

“Industrialists find it difficult to operate in a viable manner as the lubricant market is highly concentrated. An effective regulatory framework to overcome this situation is necessary,” he said.

“The lubricant industry recorded a positive growth last year reaching a moderate growth of four percent. Though, four percent growth is not very high compared to other industries, it recovered from negative growth recorded in the previous years. The industry is on a positive trend, but slow growth is recorded at present,” he said.

The increase in raw material prices globally is a concern for the lubricant industry. “We plan to expand operations in Bangladesh and Maldives. We are present in all parts of Sri Lanka and consolidating our position currently. The products related to the industry in all categories are available in our outlets and there is no gap to fill. However, we need to increase the sales volumes.

The stiff competition and limited market capacity are drawbacks in this regard,” Gomes said.