Move to drive SL exports
Sri Lanka is planning a cross functional team (CFT) style solution
for woes of industrial sectors. “We will be forming a special unit to
address issues faced by Sri Lanka’s industrialists, and manufacturers
focused on exports” said Industry and Commerce Minister Rishad
Bathiudeen. “Our main focus is to assist in issues of export oriented
industries,” he said.
Minister Bathiudeen was addressing a group of representatives
(industrialists, manufacturers and exporters) of Sri Lanka’s rubber
industry on Wednesday at the Export Development Board premises of the
Industries and Commerce Ministry.
Speaking about the CFT style unit, Minister Bathiudeen said, “I am
not just thinking of a solo mechanism by the Industry and Commerce
Ministry alone but rather a collaborative effort of other relevant
ministries, trade chambers, manufacturing associations and even the
Customs Department to solve industrial issues speedily.” He added: “It
will be a ‘one stop shop’ solution provider for our industry issues.
The new unit will not be limited to rubber issues but will involve
all industries in Sri Lanka” and said, “we will bring together high
level decision making officials of various departments together in one
place at the same time to help you all.”
“Initially we may hold it as an Industry Forum once every three
months but we will gradually transform it to a permanent Unit
thereafter” the Minister said.
The group of rubber industrialists who met the Minister on Wednesday
informed Minister Bathiudeen that they are burdened with high energy and
electricity costs, among other issues. They also felt that current
rubber exports in raw form needs to be increased from its present 23
percent share of total exports, as the raw rubber prices continue to
climb in the international markets. The representatives also complained
of high tariffs on their import and export of rubber and requested that
high tariff on furnace oil imports (used in rubber factories) be
lowered. Another issue raised by them was the high labour costs.
The representatives viewed the announcement as very encouraging.
Cheering the move immediately was the Small and Medium Rubber Product
Manufacturers’ Association President, Dilan Ilapperuma. “This is a very
good step. Of course, it is long overdue,” he said.
The share of the Industry sector in total GDP of Sri Lanka is 28.7
percent in 2010. The Industry sector grew by 8.4 per cent, supported by
increased domestic and external demand with enhanced investor and
consumer confidence. Rubber based products, textiles and garments
coupled with increased performance in the construction sector were the
main contributors for Industry sector growth in 2010. Sri Lanka reported
US $ 737 million export earnings from rubber products in 2010 of which
US $ 169 m was earned from raw rubber volumes. Despite a slight dip in
March 2011, international rubber prices continue to remain high and Sri
Lankan rubber producers are now reporting record earnings, at times in
margins of 200 percent. The increase in rubber prices was mainly due to
the rise in oil prices in the international market.
Among the Industrialists meeting with the Minister were Saiffudeen
Jafferjee (Jafferjee Brothers), DK Rajapaksa (DSI Samson Group), Don B
Ilapperuma (Jafferjee Brothers), Don Desmond (Clinco Rubber Mouldings),
Sarath Wijesinghe (Aqua Packaging), and S&M Rubber Product
Manufacturers’ Association President Dilan Ilapperuma. Also
participating in the discussion were Rohantha Athukorala (Executive
Director of the National Council for Economic Development) and Sujatha
Weerakone (Director General-EDB). |