Sri Lanka rubber sector aiming to become $3 billion a year industry by 2025

July, 29, 2019

The Colombo Rubber traders’ association (CRTA) celebrated its 100th Annual General Meeting (AGM) in Colombo recently.

Speaking during the event, managing director of global rubber industries (Pvt) Ltd Prabhash Subasinghe emphasized upon the activities that needs to be implemented in order to make Sri Lanka rubber industry a $3 billion industry by 2025.

“The turnover of the rubber industry today stands at approximately $1 billion with the aim of becoming a $3 billion dollar industry by 2025. This is not a simple task. If we collectively double our efforts along with the rubber master plan Sri Lanka can be an important player in the domestic and global rubber industry. Like most industries we are not immune to change and we are seen a seismic shift in our industry that requires us to reposition and better our self for the future,” he added.

In 2018 the world production of natural rubber accounted 13,960 million tons an increase of 4.6%. Meanwhile the world demand recorded an increase of 5. 2%, ultimately, resulting a deficit.

“In Sri Lanka however the rubber production declined by point 6% to 82.6 million kilos. Whereas the domestic usage of rubber for local industries increased by 5.6% to 135 million kilos in 2018. This creates a major shortfall which has to be filled by the import of natural rubber,” he added.

Speaking further, Subasinghe noted that SLAMERP had successfully engaged with the Government of Sri Lanka in a number of key discussions with the aim of removing obstacles and assisting with industry growth.

“SLAMERP took leadership in preventing a port tariff increase of almost 120% via successfully lobbing Prime Minister Ranil Wickremesinghe. In addition to this we also worked with the central bank for Forex Payment Methods to be revised to accommodate international payments. Moreover, SLAMERP worked to suspend a proposed export proceeding monitoring system but the central bank and customs submitted alternative proposals thereby easing trade exertions for exporters and arranged encouraging and increase in the exportations of rubber goods and an increasingly favorable trade balance,” he added.