The first ever Global Rubber Confab to take place in Sri Lanka went live in Colombo on 28 October morning with the host Sri Lanka vowing to become a ‘polymer hub’-with none other than the World Bank Washington praising the move. “By supplying both natural and synthetic rubber in parallel, there is a good possibility that we can strategically become a “polymer hub”, or at least a “natural polymer hub” to the world. With Sri Lanka’s historic natural rubber reputation, I believe that is a viable option that we all can explore and implement” said an upbeat Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on 28 October in Colombo. Minister Bathiudeen was addressing the inauguration event of Global Rubber Conference 2014 (GRC) at Cinnamon Grand, Colombo on 28 October. GRC 2014, packs more than 250 delegates from 28 countries (including ASEAN, US, EU, East Asia and North Asia). Key stakeholders of the event in Sri Lanka are Minister Bathiudeen’s Ministry of Industry and Commerce (MIC), and Ministry of Plantation Industries, with EDB under MIC being the co-sponsor with Confexhub, Malaysia. The annual GRC is one of the world’s leading confabs on natural rubber and its products. This is the fourth GRC to be held.

Joining the occasion were Basil Rajapaksa (Minister of Economic Development), Dr. Abdul Aziz (Chairman, Confexhub Sdn Bhd – Malaysia), Anura Siriwardena (Secretary, MIC), Bandula Egodage (Chairman & CEO, EDB), Ms Sujatha Weerakoon (Director General-EDB), RDS Kumararatne (DG-DoC), top government officials, rubber industry reps from manufacturing and exports sectors.

“This event takes place as latest encouraging news on local and international Natural Rubber are reported. The local report is the good news of the action taken by HE the President Mahinda Rajapaksa in his Budget 2105. On behalf of our rubber industry, I thank HE the President Mahinda Rajapaksa for increasing the certified price for rubber and increase the Cess tax on rubber imports. As for international good news, I am pleased to tell you, that till 2015, rubber prices would be steady around dollars two. After 2017, prices per kilo would go above three dollars. I thank the, visiting global investment strategist Mr Dar Wong, for giving us this good news, at the technical session” said Minister Bathiudeen and added: “World Natural Rubber production too have shown an increase in 2013. It is also interesting to note that global tire sales have increased by 21% to $ 187 Bn in 2011, and continues to increase. As I have, revealed in our Rubber Conference press briefing in Colombo in August, that our government under the vision of HE the President Mahinda Rajapaksa is now aiming at an ambitious $3B rubber industry in the coming decade. The most interesting contribution of our rubber industry in this regard is its resilience. Despite challenging global market conditions and energy cost pressures not only Sri Lanka’s rubber sector has been resilient, it also shows signs of expansion. The cost of production per Lankan rubber Kilogram was around $1 in 2012, and showed only a slight increase $1.15 in 2013. Average yield per hectare is 1247 kilos in 2013 and in this regard, we rank above some other producers in the region. We also rank in par with the world average yield per hectare as well. Interestingly, as for expansion in the last five years, the number of registered private companies operating in Sri Lankan rubber sector has increased by a strong 48%, to 251 from 2009’s 169 registered firms. The local rubber cultivation extent has also increased by 9.4% since 2009 to 133,600 hectares in 2013. As for exports I am pleased to say that in 2013, Sri Lanka exported $72 Mn of natural Rubber and another $887 Mn rubber finished products. This 2013 overall total of $ 960 Mn is a 100% increase, from exports of five years ago in 2009. My Ministry has commenced important initiatives for this sector at a cost of more than $46000. As global industry experts I believe that you too would agree that Innovation in this sector is the way forward. We all know of the latest trend in global rubber sector-the increasing demand for “green rubber.” For Sri Lanka’s next rubber revolution with your support Sri Lanka can think of innovative, ‘green rubber’ opportunity and position itself as a top “green rubber” supplier to the global market. Supplying both natural and synthetic rubber in parallel, there is a good possibility that we can strategically become a “polymer hub”, or at least a “natural polymer hub” to the world. With Sri Lanka’s historic (natural) rubber reputation, I believe that is a viable option that we all can explore and implement.”

Minister Bathiudeen’s call for a polymer hub has been commended by none-other than the World Bank. “Sri Lanka can become a polymer hub indeed!” said Washington DC based John Baffes (Senior Economist, Development Prospects Group, Washington DC office of the World Bank). “Sri Lanka has the capacity to produce quite a diverse range of natural rubber-and even other products such as spices. Sri Lanka can increase its rubber exports by aiming towards a polymer hub since that opens door for value addition practices and wider commoditisation of this material” added Baffes.

“GRC is initiated by the EDB” said Bandula Egodage (Chairman & CEO-EDB) addressing the event. “As per HE the President Mahinda Rajapaksa’s event, our exports are in a transformational situation-from traditional to non-traditional. This is why we have become a leader in rubber tyres. GRC is an opportunity for rubber opinion leaders, experts, investors, industry leaders and other stakeholders to meet each other and share their experiences. It also gives a great opportunity for our rubber industry, which has two aspects-plantation and manufacturing.” Dr. Abdul Aziz (Chairman, Confexhub Sdn Bhd – Malaysia) addressing the event, said: “As a result of introduction of rubber to South Asia, research facilities also came here. As a result, in 1909, the Rubber Research Institute (RRI), the oldest in the world, was established in Sri Lanka. Also as a result of this research facility, the rubber disease that threatened Sri Lankan production, was eradicated. Due to their breeding program, they have produced RRIC 103 rubber variety that withstood the disease. It is important for the rubber industry to meet challenges.”

The GRC will close on 30 October after many in-depth technical sessions and briefings by attending international experts and reputed speakers.