Lanka DoC to work on adhesive industry complaints
The adhesive industry plays a crucial role in a variety of allied
industries such as footwear and lately, even SMEs due to its value
addition role. The Department of Commerce of Ministry of Industry and
Commerce is now studying ways to assist the cross-cutting Sri Lankan
adhesive industry from cheaper import substitutes. “There seems to be
unfair competition faced by the local adhesive industry due to the
influx of low quality adhesives from other countries at reduced duties,”
said P D Fernando, Director General of Commerce on June 27.
Fernando said this in the aftermath of his meeting with an adhesive
industry delegation from the National Chamber of Commerce of Sri Lanka
on June 27. The delegation informed Director General of Commerce that
the import duty for adhesive from India and Pakistan are zero percent
while the duties on imports from other countries are around 15 percent.
“This low duty regime has created an unfair competition to the domestic
adhesive industry,” he said.
Thousands are employed (directly and indirectly) in this industry and
the Lankan footwear sector is strongly dependent on the adhesives.
Among the manufacturing firms engaged are Sinwa Industries, Edna
Refineries Ltd, Antler Trading, Harrisons Chemicals, Agra Chemicals,
S-Lon Lanka, Ceylon Carbon Paper, Vortex Industries, and Abesinghe
Industries. The synthetic rubber based adhesives sector, with new tech
know-how, now produces Polychloroprene (CR) adhesives which is in
accordance with international quality standards.
“We supply about 60% of the Lankan adhesive requirements mainly to
the footwear, furniture and other allied industries” said Naider Cader
of Sinwa Industries and the President of Sri Lanka Adhesive Industry
Association.
“We want the DGC to convince the policy makers and to charge a cess
for imported adhesive so that local industry will have a fair
competition as against the present unfair competition. The local
adhesive industry was started in 1960s and performing well until the
recent past and the reduced import duty introduced lately has adversely
affected the industry”.
The delegation also pointed out that Sri Lanka was exporting adhesive
in the past but due to the import duty reduction the industry is
presently struggling for survival,” he added.
The adhesive industry delegation, accompanied by EM Wijethilleke,
Secretary General of NCC, requested the support of the DGC especially in
deciding tariff for high quality products that are successfully
manufactured within the country so that the local industry could survive
and help to save foreign exchange which is otherwise spent on low
quality imports.
P D Fernando, Director General of Commerce pledged to take up the
issue with the policy makers to look after the industry with fair
practices and thanked the National Chamber of Commerce of Sri Lanka for
bringing genuine issues so that the Department could actively engage in
promoting the local industry. |