Lanka's rubber industry can meet global competition

by L. S. A. Wedaarachchi

The rubber industry in Sri Lanka has the potential to grow and is capable of meeting global competition. Sri Lanka's rubber products industry currently enjoys a small share of less than 0.25 per cent.

The global rubber industry shows a steady growth. At present it records an annual turnover exceeding Rs. 1.2 trillion.

Total global rubber consumption grows at an annual rate of 4.1 per cent. More than 40,000 generic rubber producers are made worldwide. The Sri Lanka Association of Manufacturers and Exporters of Rubber Products chairman Ananda Caldera said that before 1950, Sri Lanka had basically an agro based economy.

Due to state intervention, after 1950 Sri Lanka made conscious efforts to industrialise, he said. "The open economy resulted in globalisation and has lead to change in the economic environment in Sri Lanka.

The economic environment of Sri Lanka has also been influenced by the Indo-Sri Lanka Free Trade Agreement (FTA), SAPTA. At present the rubber industry in Sri Lanka is recognised as a focus industry or "thrust" industry, he said.

He said that Sri Lanka's rubber industry has been clustered as a Sri Lanka Society of rubber representing all stakeholders, namely Planters Association, Product Manufacturers and Exporters Association and the Colombo Rubber Traders' Association.

According to Caldera the rubber industry in Sri lanka can be categorised as dry rubber based industries namely pneumatic tyres, solid tyres, footwear, moulded goods and Latex based industries namely dipped products, Latex bands Foam rubber.

He said that the high cost of energy, lower level of mechanisation and automation non availability of active applied research organisations, and non availability of an adequate number of recognised testing laboratories, are the weaknesses of the industry prevailing at present.

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