6 November 2024 12:18 am Views - 196
Global tyre manufacturing giant Michelin has proposed the government in Sri Lanka to consider establishing a dedicated rubber manufacturing zone to boost local production of rubber related products.
As one of the world’s top natural rubber producers, Sri Lanka has significant potential to expand its rubber manufacturing sector, with Michelin stressing that the government should adopt more proactive policies to encourage such growth.
The proposals were presented during a meeting on November 1 between a high-level Michelin delegation and the newly appointed Export Development Board (EDB) Chairman Mangala Wijesinghe.
“Representatives of Michelin pointed out that the government needs to implement proactive policies to increase rubber production in Sri Lanka to provide impetus to value-added rubber products, while taking initiatives to expand market access through FTAs. They also stressed the necessity of establishing a dedicated rubber zone to manufacture different types of rubber products in the island,” the EDB said following the high-level meeting with the delegation.
Sri Lanka’s rubber manufacturing sector is a major contributor to the economy, generating close to US$ 1 billion annually, mainly through export of natural rubber and rubber-based products.
In September 2024, the sector was listed as the third-largest revenue contributor, recording US$ 79.5 million in export income.
However, the latest figures marked a 4.1 percent decline in revenue, compared to the previous months with reasons largely attributed to a drop in the export of pneumatic and retreaded rubber tyres and tubes.