Activated carbon factory re-opened

by Rohana Jayalal

The revival of large-scale industries which were closed down is a part of the Government's economic policy, Finance Minister Ravi Karunanayake said at the re-opening of Adam Carbons (Pvt) Ltd at Giriulla.

The Government hopes to provide incentives to revive such industries to ensure employment to a large number of people, promote economic life and develop provincial areas, he said.

"We are determined to ensure a better life for the people and the country. Our top priority is to encourage investment and increase exports," the Minister said.

"The country needs to focus on exporting more products and services as the Government's strategy is to develop the local export market to compete in the international arena.Our thrust is to ensure that we have more exports," he said.

"We certainly have a drop in exports. The quantity is there but not quality, value and the volume. We have to transform Sri Lanka into a regional market, expanding its scope and market share from the domestic to the international arena," the Minister said.

Sri Lanka's GDP at current market prices was estimated at Rs. 9,785 billion (US $75 billion) in 2014 compared to Rs. 8,674 (US $ 67 billion) in 2013. The agricultural sector contributed 10.1 percent to the GDP, industrial sector 32.3 percent and services sector 57.6 percent.

Exports amounted to only $ 11.3 billion compared to $ 19.46 of imports, leaving a trade gap of $ 8.27 billion, Karunanayake said.

"The business community must contribute to reduce the trade gap. We have a balance of payment surplus but the trade gap must be made positive to ensure an overall healthy situation," he said.

The Government is exploring the possibility of reducing some of the products and services that are imported into the county which are considered unnecessary and will encourage local producers and service providers, the Minister said.

"Regionalising would certainly reduce cost of production while increasing market share, making us competitive in the export market," he said.

"The business community does not need to compete individually. We will get together with the private sector and compete," Karunanayake said.

Bieco Link's activated carbon factory, was renamed Adam Carbons (Pvt) Ltd. after Adam Investments PLC bought out previous owners PCHH PLC. It launched production after a brief period of inactivity.

The factory, at one time, Sri Lanka's second biggest exporter of activated carbon has seen its fortunes revive since Adam Investments PLC became the majority shareholder of its parent company PCHH PLC (now Adam Capital PLC) in November 2014. The new owners have re-equipped the plant, appointed a new management and repaired buildings and premises in a refurbishment spanning six months.

"Giriulla town and residents depended on the factory for employment and income," said Managing Director, Adam Capital, Chaminda Banduthilake. The period of inactivity had affected the local economy and had a negative impact on the town.

"With the reopening, the economy and inhabitants of Giriulla once again stand to benefit from our operations," he said.

Poised to impact local activated carbon production, Adam Carbons (Pvt) Ltd. enjoys an advantageous location in the coconut belt with raw material suppliers readily available in the area.

An urgent campaign sparking worldwide interest yielded orders from overseas buyers spanning three months' production.

The factory which has rotary and flatbed kilns can supply granular and powdered activated carbon, with an anticipated production of 6,000 metric tons annually. Activated carbon is used as a purification agent in water treatment and air purification, as well as in the gold refining, petroleum and chemicals industries. Any carbonaceous materials can be used as raw material to manufacture activated carbon, such as coconut shells, peat, wood or coal. Sri Lanka's six activated carbon manufacturers prefer coconut shell charcoal for its ready availability in the island.