“We are facing difficult times in the rubber sector. Issues such as global market situation, supply side constraints, lack of technology to modernize the sector, and artificial rubber imports need to be resolved for the development of this sector” said the Minister of Industry and Commerce Rishad Bathiudeen on 05 August in Colombo.
Minister Bathiudeen was speaking at the inauguration of the third edition of Lanka Plast and Rubexpo at BMICH on 05 August. The series has expanded from its original “two exhibition natures” 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 taking part this year. Joining the Minister Bathiudeen were Deputy High Commissioner of India to Sri Lanka Arindam Bagchi, President of Plastics and Rubber Institute of Sri Lanka (PRISL) M.T. Pringiers, and PRISL Vice President Kaushal Rajapaksa.
“Rubber is one of our main exports. It is also used heavily in local manufacturing. Annually we consume around $195 million of rubber, for local manufacturing. Our Ministry database has 485 rubber product manufacturers of large medium and small scales but we believe that there are many un-registered rubber manufacturers as well. The issues in rubber sector affect our rubber product manufacturing as well. Realising the need to quickly address them, My Ministry has launched several initiatives” said Minister Bathiudeen and added: “In fact my Ministry will be a proud implementing partner of 12 projects out of the total 25 projects in Government’s Rubber Master Plan. We start with information. Lack of information on 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. There is a growing problem of lack of skilled technology knowledge in our industry. Realising the need to address this issue my Ministry, with Sri Lanka Plastic and Rubber Research Institute contacted an Indian university well known for plastic and rubber technologies. We contacted the Cochin University of Science and Technology in Kerala India 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 My Ministry is facilitating 25 Lankan rubber industry technicians to go to Kerala next month for training in latest rubber technologies. I am pleased to say that there has been a strong demand by our rubber industry to take part in this initiative from the time we announced it. We thank India for the support extended to our industry and other sectors over the years. In another initiative to address rubber product manufacturing skills, we are also sponsoring another 25 students for the Graduateship Program of Plastic and Rubber Institute of Sri Lanka, funding 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 molding machine” for 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 molds 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 Sri Lankan rubber industry with the latest technologies. As for Plastics, it is 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 6 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 which is around 6 kilos 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 Arindam Bagchi addressing the event said that there has been continued strengthening of Indo-Lanka relations, including trade. “After end of the conflict, both governments are enjoying robust economic and commercial relations. Exports from both countries 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. 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 to discuss on 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 now, began in 2012 and has been supported by Minister Rishad’s Industry and Commerce Ministry since its inception.
