SME industry owners, entrepreneurs hit by fuel and gas hike

Many small and medium sector industry owners and entrepreneurs in the country are facing hardships due to the hike in fuel and gas prices which has resulted in an increase in the cost of production.

President, Ceylon Chamber of Small Industries, Aloy Perera said most of the small and medium scale industries depend on diesel, kerosene and gas and when prices of these items rise rapidly they find it difficult to survive in the industry.

He said repeated appeals to Ministry officials to grant subsidies to small industry holders and entrepreneurs have been to no avail.

Gamini Karunaratne, a bronze craftsman of Nittambuwa said following the increase in kerosene and gas prices he was unable to produce the quantity he wished and sell them at a competitive price.

Basil Perera, also a bronze craftsman from Wattala said he cannot sell his products due to the excessive cost of energy and that he is trying desperately to survive in the trade.

Tableware manufacturing companies such as Noritake, Dankotuwa Porcelain and Fernwood are incurring losses due to the surge in fuel and gas prices within a short period.

Chairman, Dankotuwa Porcelain Sunil Wijesinha said the company loses Rs. 2 million per month as a result of industrial gas increasing by Rs. 7 per kilogram.

The company made a profit of Rs. 2 million per month during the first quarter of the year but now loses Rs. 2 million a month due to the increased cost of production.

He said immediate measures should be taken to stop subsidising domestic customers and ensure a reasonable increase in prices.

K.I.K. Group Chairman Lalith Kahatapitiya said the energy crisis in the country has hit many small industries which are surviving without any progress.

"It is appropriate that we go for high tech industries with foreign collaboration instead of depending on low tech industries with basic technology," he said.

The Ceylon National Chamber of Industry Chairman A.K. Ratnarajah said the chamber will be organising a forum where the views of all industrial stakeholders will be presented to the relevant ministries and exert pressure on officials to formulate a national plan for industries.

Industrial and business chambers said that they had made representations to the relevant authorities on the need for a subsidy scheme and certain relief measures for the small and medium scale industries but have not received any response.

LF