Reduce tax on LPG gas, says SLCC chief:

Staggering energy and labour costs hit ceramics industry

By Lalin FERNANDOPULLE

The ceramics industry, a major foreign exchange earner faces a daunting task to stay afloat due to staggering energy and labour costs, an official of the Sri Lanka Ceramics Council (SLCC) said.

He said Sri Lanka has to compete with low cost markets such as Bangladesh, India and Vietnam which have gained an edge over Sri Lanka in the global market. Sri Lanka is acclaimed for producing some of the finest ceramic products in the world. The industry is several centuries-old and provides direct livelihood to around 7,000 people while another 7,500 are indirectly employed in the industry.

The income from ceramics exports in 2010/11 was Rs. 5,777, 460, 240 as against Rs. 5,044, 769, 499 earned in 2009/10.Porcelain tableware, ornamental ware and glazed wall and floor tiles are exported to the USA, Australia, Italy, Germany, UK, France, Canada, the Netherlands, Japan and Singapore which are primary markets for Sri Lankan ceramic products.

SLCC President, Dayasiri Warnakulasooriya said the ceramics industry has called for a reduction on the tax on LPG gas for the survival of the ceramics industry.The tax on LPG gas on the ceramics industry has impacted badly on the survival of the industry. The ceramics industry consumes a high amount of LPG during the production process.

”The SLCC has requested for the direct purchase of LPG gas from the Ceylon Petroleum Corporation to save the cost on taxes” Warnakulasooriya said.Ceramics manufacturers pay a high price for LPG which increases production cost.

The industry cannot compete in the international market and survive in the business, with such high production costs.The ceramics industry needs around 1,170 metric tons of LPG per month. A large number of small ceramic factories have closed due to high energy prices and the emergence of new markets with low labour cost, SLCC sources said.

Sri Lanka is rich in minerals, such as kaolin, ball clay, feldspar, silica quartz and dolomite, which are used in the manufacture of ceramics products. Sri Lanka’s ceramic industry is fortunate to enjoy an abundance of raw materials, available at a very reasonable cost. The excellent quality and purity of these materials contribute to the high standard of the products, which are now of international repute. The other distinct advantage enjoyed by Sri Lanka is the availability of a highly skilled and literate workforce at very competitive wage rates. An abundance of trained and gifted designers, chemists, technologists and engineers provide a highly productive workforce.