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| Sunday, 22 February 2004 |
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Ceramics Council formed Sri Lanka's porcelainware is among the best in Asia, but exports to affluent countries including the United States were often stalled due to lack of an international campaign to market the nation as a quality producer of porcelainware, Sri Lanka Ceramics Council (SLACC) President Sunil Wijesingha, said last week. The occasion marked the inauguration of SLACC, bringing together, the ceramics industry, by accommodating 30 to 40 companies in operation, including SMEs, with a total workforce of 22,000. These companies comprise manufacturers of ornamentalware, tableware, wall/floor tiles, limited scale sanitaryware and ancillaryware. The objectives of SLACC are to promote the ceramics industry and make it more competitive in the world market; to serve as a consensus building among manufacturers, research and development institutes, universities, government industries and others involved in the ceramics industry and to promote high standards of business conduct; to be the unifying force in working with the government to ensure the well-being of the ceramics industry. Sri Lanka's exports of ceramics was Rs. 3,246 million in 1997, and rose to Rs. 4,846 million in 2002, but in dollar terms, exports receded, from $5.5 million in 1997 to $4.2 million in 2002, Wijesingha said. Central Bank has forecast a growth of exports for the ceramics industry to reach Rs. 5,040 million by 2007. Wijesingha said that the industry has the potential for growth through expansion of current operations, diversification and manufacture of advanced ceramics products. However, the growth of the industry is hampered due to lack of a clear policy direction; capital intensive nature of the industry and cost of capital; foreign investment flow to Asian countries, due to the availability of cheap labour; lack of marketing channels, in the case of SMEs etc. The energy cost of the industry is among the highest in Asia and the total cost of production varies from 20 to 40 percent. For a typical porcelainware factory, the energy cost would be around Rs 120 million per year; for a tile manufacturing factory, Rs. 172 million per year and ornamentalware factory, Rs. 28 million per year. SLACC has recommended more LP gas suppliers to enter the bulk/industrial segment; to see that an independent regulatory body is set up to oversee that LP gas pricing is reflective of world market prices.SLACC Secretary, Kithsiri Wijesundera said that the industry had requested for relief from the Ministry of Power and Energy. Replying, Minister of Industries, Rohitha Bogollagama, said that the Ministry, had long-term plans to grant such relief, but with a general election around the corner, it would not be possible right now. A Sri Lanka ceramics symposium is scheduled to be held in Colombo during June-July this year and, among its objectives, are to showcase the industry and act as a sales point; to explore opportunities for technological transfer and encourage scientific research connected with the ceramics industry, vice president, Dayasiri Warnakulasooriya said. The ceramics industry also plans to release industry publications and conduct industry specific technical and marketing seminars, Treasurer, Rajiv Casie Chetty said. (EL) |
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