Overcome barriers to increase bottled water exports - Chairman

By Surekha GALAGODA

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Sri Lanka exported bottled water to the value of Rs. 24 mln up to October 2008 and there is potential to increase it further if the barriers impeding its growth are eliminated.

Chairman, American Premium Water Systems (Pvt) Ltd, Anura Kumarasinghe said that bottled water was never recognised earlier but it is an essential food item and the government realising its potential has presented a budget proposal to develop the bottled water industry.

Considered the father of the bottled water industry, Kumarasinghe said, “We had a discussion but never thought that the government will act so fast. It is a welcome move.”

Kumarasinghe who is also the President of the Sri Lanka Bottled Waters’ Association (SLBWA) said that as requested by the EDB, the Association submitted its proposals relating to the development of the industry on Friday. The EDB is keen to improve the industry.

He said that if consistent standards are introduced for local and imported water and a freight subsidy is given, SLBWA can increase the export volumes and earn foreign exchange. Since the product is 100% Sri Lankan the total amount earned is the country’s gain.

At present 90% of our bottled water is exported to the Maldives while the balance is exported to Australia and the Middle East.

In the event a subsidy on freight is given we can increase exports to Maldives as there is a huge market due to the numerous tourist hotels.

The freight rates to the Maldives is very costly. To export a 20-foot container to Maldives the freight rate is US$ 1,000 while it is US$ 150 to India.

In addition, Maldives has imposed a 15% duty. In the event government to government discussions can be held to abolish it, it will greatly help the industry.

In the event these obstacles are removed we can earn Rs. 200-250 mln on exports to the Maldives alone as the consumption is fives times greater than Sri Lanka.

The SLBWA can increase the quantity to the Middle East also if there is government support.

The Sri Lanka Standards Institution (SLSI) has laid down strict standards for local manufacturers while for importers the certificate is given based on documentation and the product.

He said that according to the standards local companies have to specify the source and one source can be used only by one manufacturer.

This hampers the growth of the business while the cost also increases unnecessarily. Globally source water testing has been given up.

Outlining the company’s achievements, Kumarasinghe said that the company has set up a plant in Chennai and the company is ranked among the first 10 bottled water companies.

The company is also planning to open a plant in Bangalore and another in the Maldives.

In Sri Lanka the company is planning to establish a plant in the Kandy district.

The market for bottled water is growing and it is now an essential food item.