Work starts on master plan for rubber industry

Minister of Industry and Commerce Rishad Bathiudeen  inaugurates the third edition of Lanka Plast & Rubexpo joined by Deputy High Commissioner of India to Sri Lanka Arindam Bagchi (right) at the BMICH yesterday. B. Swaminathan, President of Plastics and Rubber Institute of Sri Lanka M.T. Pringiers and Director of India’s National Small Industries Corporation P. Udayakumar are also present  - More pix on p5

Work on the much-awaited Rubber Industry Masterplan has commenced in earnest, with the Industry and Commerce Ministry implementing a major portion of projects outlined in it. 

Meanwhile, India says that its team will be in town as early as next week to discuss the Economic and Technology Cooperation Agreement (ETCA) mooted between the two South Asian neighbours, as announced yesterday in Colombo.

“We are facing difficult times in the rubber sector. Issues such as the global market situation, supply side constraints, lack of technology to modernise the sector and artificial rubber imports need to be resolved for the development of this sector,” stressed Minister of Industry and Commerce Rishad Bathiudeen yesterday, addressing the inaugural event of the third edition of Lanka Plast and Rubexpo at the BMICH. 

The series has expanded from its original ‘two exhibition’ nature to an event of four parallel exhibitions this year, with the introduction of packaging and manufacturing sector expos. Increasing numbers of plastic and rubber industry owners and CEOs are now attending this series. Exhibitors from India, China, Taiwan and Germany are also taking part this year. 

Joining Bathiudeen were Deputy High Commissioner of India to Sri Lanka ArindamBagchi, Plastics and Rubber Institute of Sri Lanka (PRISL) President M.T. Pringiers, and PRISL Vice President Kaushal Rajapaksa, among others.

“Rubber is one of our main exports. It is also used heavily in local manufacturing. Annually we use around $195 million worth of rubber for local manufacturing. Our Ministry database has 485 rubber product manufacturers of large medium and small scales but we believe there are many un-registered rubber manufacturers as well. The issues in the rubber sector affect our rubber product manufacturing as well. Realising the need to quickly address them, the Ministry has launched several initiatives,” said Bathiudeen.

He added: “The Ministry will be a proud implementing partner of 12 projects out of the total 25 projects in the Government’s Rubber Master Plan. We start with information. Lack of information on the Lankan rubber industry is a key issue in our development efforts. Therefore we are currently implementing a country-wide rubber manufacturing sector survey in this regard and expect to complete by the end of this year.”

Another project is addressing the shortage of rubber manufacturing skills, he revealed. “There is a growing problem of lack of skilled technology knowledge in our industry.Realising the need to address this issue, the Ministry and the Sri Lanka Plastic and Rubber Research Institute contacted an Indian university well-known for plastic and rubber technologies, the Cochin University of Science and Technology in Kerala, India. It is known in South Asia for its plastic and rubber research. This university positively responded to our request. As a result I am pleased to say that the Ministry is facilitating 25 Lankan rubber industry technicians to go to Kerala next month for training in latest rubber technologies.”

Bathiudeensaid there had been strong demand by the local rubber industry to take part in this initiative from the time it was announced, while thanking India for the support extended to the local rubber industry and other sectors over the years. 

In another initiative to address rubber product manufacturing skills, the Ministry is sponsoring another 25 students for the Graduateship Program of Plastic and Rubber Institute of Sri Lanka, with funding of Rs. 3.7 million. 

“SMEs are an important sub sector in our rubber product manufacturing sector. To address issues of rubber manufacturing SMEs, we have moved the Industrial Development Board under our Ministry to use new technologies. We are investing Rs 9.4 million to purchase a rubber injection moulding machinefor IDB. The technology is obtained from Taiwan. As a result of this, SME rubber industries that are facing the problem of lack of access to rubber moulds testing equipment will now be able to move forward in their production work much faster. I am pleased to say that in future too, we look forward to upgrade the Sri Lankan rubber industry with the latest technologies.”

Moving on to plastics, Bathiudeensaid it was becoming an increasingly used day-to-day item in Sri Lankan households, being a durable and a low-cost substitute to expensive metal and wood. 

“We believe that Sri Lanka’s per capita plastic use is around six kilograms. As estimated by Sri Lankan plastic manufacturers, there is a 20 to 25% annual plastic usage growth in Sri Lanka. Therefore the per capita plastic use is also likely to increase. With the decline of oil prices, plastic products also are becoming cheaper to manufacture and will be attractive low-cost items in the consumer market. Therefore I believe there are good times ahead for the plastic industry in Sri Lanka.”

Deputy High Commissioner of India to Sri Lanka ArindamBagchi addressing the event said that there has been continued strengthening of Indo-Lanka relations, including trade. 

“After the end of the conflict, both Governments are enjoying robust economic and commercial relations. Exports from both countries have increased to each other. But we have to look beyond exporting; the era of arbitraging on tariff is now over. Now we should need to look beyond exports and how to integrate economies, services. We need to see how our value and supply chains are integrated.”

India’s investments in Sri Lanka too have increased, he noted. “We have invested almost one billion dollars in Sri Lanka and another one to two billion dollars are being committed by Indians in the next five years. Both Governments are trying to build on these synergies. I am happy that next week a delegation from India will arrive to discuss our Economic and Technology Cooperation Agreement and they will look at how to integrate services and investment.”

The successful Sri Lanka Plast&Rubexpo exhibition series, held for the third time, began in 2012 and has been supported by the Industry and Commerce Ministry since its inception.