Industry must work together to achieve targets - President, SL Ceramic Council

The future of the ceramics industry in Sri Lanka will depend on factors such as utilization of local raw materials, finding ways to reduce energy costs and differentiating from other ceramic manufacturing countries, said President, Sri Lanka Ceramic Council, Dayasiri Warnakulasuriya.

Speaking at the seventh AGM he said that he was confident that if the industry works together the targets can be achieved.

He said the industry is continuing to face stiff competition not only from China but also from Bangladesh, India and other neighbouring countries. "The main markets for all of us is Europe and USA.

The reduction in export orders from these countries due to the economic crisis has put much pressure on local exporters to reduce production costs to retain buyers.

The fact that we are facing an exchange loss on currencies such as the euro and the pound and we have also lost the benefit of the GSP Plus adds to our challenges."

Warnakulasuriya said that our ceramic products are of world class but the production cost is quite high compared to our regional neighbours due to the high energy cost and the lack of good quality raw materials.

The increasing labour cost has become a major issue for the industry and also face difficulty in sourcing raw materials locally due to issues in obtaining mining licenses. The chief guest CEO of LIRNEasia Prof. Rohan Samarajeeva said that our chances of success are better if we draw on skills and capital or if we do it our own way. Expressing his ideas on free trade agreements Prof. Samarajeeva said that it is good to be connected together.

He said China is proposing ASEAN plus three but there is no mention of Sri Lanka.

Japan and Australia are promoting the East Asian Community but there is no mention of Sri Lanka. Only India wants to sign a CEPA with us.

The countries who are connected are better off than the countries who are not.

A country should increase productivity, integrate with global value chains and ensure that it is not left out as this will pave the way for success.

Prof. Samarajiva said that trade between South Asia and East Asia is increasing and at present India is trading with China more than with the EU and USA.

SG