40-fold returns on investment:

Ratmalana Industrial Zone tops $ 18 m turnover in 2011

The Ratmalana Industrial Zone (RIZ) where 2012 US BID Quality award winner Elcardo Industries is based, has reported $ 18 m (Rs 2,500 m) turnover in 2011. “We salute the international achievement of Elcardo Chairman Rohan Weeraratne which brought honour to RIZ and our manufactures.

The $ 456,000 initial investment by the Industry Ministry in RIZ since 1998 has paid off and it also reaped revenue of 40 times of initial investment in 2011 showing that RIZ is another success in our industry zone scheme,” said Rishad Bathiudeen, Minister of Industry of Commerce.

“Our initial estimates of revenue for 2011 are $ 18 million but we believe it could be more, almost in the range of $20 million” he said.

Minister Bathiudeen made these observations in the aftermath of his sudden site tour to the Ratmalana Industrial Zone (RIZ) under his Ministry on June 22.

During the unannounced visit, the minister made a close inspection of the operations of the zone and also inquired of the wellbeing and issues faced by zonal industrialists.

Rohan Weeraratne won the International Quality Summit Award in the Gold Category at the annual awards ceremony held in New York recently at the Mariott Marquis Convention Hall. Jose E. Prieto, President of the US based Business Initiative Directions (BID), which has members from 178 countries, handed over the award to Weeraratne.

RIZ was started by the Ministry of Industry and Commerce in 1998 and to-date, the ministry’s investments and upgrade outlay for RIZ totals Rs 61.03 million ($ 456,000).

The zone, which has manufacturing sectors such as steel, toiletries, herbals, and stationery, has two phases spread across 16 acres (6.47 Ha).

Among the manufacturers successfully operating are Elcardo Industries Ltd (steel/roller doors), Phoenix Tradeing (heavy earth moving machinery), Siddhalepa Ayurveda Exports (herbal products), Luck herbs Lanka (lquid soaps), Seamaice (napthaline), Dynamic Technologies (road tankers), Asian Chill Equipment (supermarket displays), Deto Surfacts (industry detergents), Tiljay Computer Forms, and Petropackaging (good processing).

RIZ Industrialists, who greeted the minister informed him that they are making profits but complained of an odd taxation regime implemented by the Dehiwela Mount Lavinia Municipality, within which the RIZ is located. “As industrialists of the RIZ we are not sure on what basis we need to pay a tax for production capital,” they said.

According to Rohan Weeraratne, the BID award winning Chairman of Elcardo, the municipality has imposed a tax on new machineries installed by all manufacturers in the zone. “The taxes appear to be imposed arbitrarily with no one paying a standard rate. I myself have to pay a hefty tax for installing new machinery in my factories which I believe is unfair. We believe that this tax is against the industrial development policies of the government,” Weeraratne said. Minister Bathiudeen directed officials to look into the matter.