Tremendous scope for ceramics industry

by L.S.A. Wedaarachchi

The ceramic industry in Sri Lanka has a bright future. The aim of the industry is to produce advanced ceramics.

The president of the Sri Lanka Ceramics Council (SLCC) Dayasiri Warnakulasooriya said that the government should give the backing and assistance for the progress of the industry. He emphasised the importance of joining hands with local industrialists, professionals and academics with their world counterparts.

The interest rates on loans to modernise factories in Sri Lanka are comparatively much higher than those with the other ceramic developing countries such as India, Thailand and China. In Sri Lanka the interest rate is 17% or 18% whereas only 2% or 3% percent is levied in India and Japan, he said.

Four years ago China grabbed the US ceramic market from Sri Lanka mainly due to their low price structure. China still maintains low prices and high quality standards since the Chinese ceramic manufacturers' production costs are low. In Sri Lanka especially production costs are high. It is increasing continuously due to the increasing energy, electrical and fuel costs.

The ceramics industry needs the assistance of the authorities to bring down production costs. It is only then that the ceramic industry could compete with competitors in the global market, he said.

"If Sri Lanka is to be competitive it is necessary that the local industry takes cognizance of what's taking place around it globally to strategies for the future.

This is not only in the development of the product itself, but also in shapes, performance, processes, energy research and the advanced uses of ceramics," he said. The ceramic industry which has a long history was revived in Sri Lanka during the early part of the 20th century when small-scale brick and tile industries were set up.

At present there are around 30 ceramic companies in operation, seven of which are large with the remaining being small and medium-scale enterprises. The competition among the larger firms is healthy and there is distinct product differentiation among manufacturers.

The Sri Lanka ceramics industry has some significant operational strengths, including a highly skilled workforce. The workforce stands at approximately 20,000.

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