Friday Dec 13, 2024
Friday Dec 13, 2024
Monday, 18 March 2019 00:00 - - {{hitsCtrl.values.hits}}
The Sri Lanka Association for Manufacturers and Exporters of Rubber Products (SLAMERP) welcomes the focus given by the Finance Minister and the Ministry on a key value-added export sector at the Budget 2019. The rubber industry currently exports $ 1 billion worth of manufactured high-end rubber products.
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SLAMERP Chairman Prabhash Subasinghe |
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SLAMERP Director General Rohan Masakorla |
Sri Lanka is known to be a reliable sourcing destination for international buyers and has the potential to be a major export and a trading hub for rubber if the conducive environment is further enhanced. At present, Sri Lanka commands nearly 30% of the world’s solid tyre industry and has a strong presence in quality glove manufacturing too among other products.
Top global brands are now present in Sri Lanka, making the country a prominent player in the international platform. Given this promising picture, the rubber industry certainly can reach $ 3 billion export revenue in the medium term and has even greater potential if the rubber master plan is implemented on a timely manner.
The Ministry of Plantations and the respective Government institutions have taken a keen interest in developing the concepts of the master plan and indeed this year’s budgetary allocation will certainly help across the industry to be motivated. SLAMERP has always been of the view that the plantations sector of the rubber industry needs replantation and expansion with new plantations to increase natural rubber production. At the same time, the industry has pointed out that productivity and yield increase is another area that must be addressed to support the output of natural rubber. Now, the industry consumes all what is produced locally and have been forced to import nearly 50% of raw material for export processing.
SLAMERP welcomes the total budgetary allocations of Rs. 1.3 billion which encompasses research and development too. The allocation of Rs. 800 million plantations is a very positive step in the policy document. It is in the interest of long-term development goals of the industry and will support the small holders as well as plantation companies to expand the growing areas and act to increase the output. Secondly it is commendable that R&D has been allocated Rs. 500 million as the industry needs upgrading of testing and other laboratory facilities as well to develop new products that the international market is demanding.
SLAMERP therefore extends its appreciation to the Government and all who focused on supporting the rubber export industry and consulted the sector in making the Budget 2019.
