Rubber sector unable to unleash full support as it receives little govt. attention: SLAMERP

By Shabiya Ali Ahlam
Sri Lanka’s rubber industry is unable to unleash its full potential and fetch higher revenue, as it continues to receive little attention from the government. 

The industry stakeholders said that although plans have been conceptualised to uplift the sector and improve its performance, hardly any efforts are being made by the relevant authorities to roll out the efforts. 

“We have a rubber master plan but that is not implemented properly. Otherwise, Sri Lanka can reach US $ 3 billion export in a shorter period. The more we depend on imported raw material, our value addition drops locally.
“We don’t see enough effort by respective ministries and government authorities to increase the rubber output,” said Sri Lanka Association of Manufacturers and Exporters of Rubber Products (SLAMERP) Director General Rohan Masakorala, speaking to Mirror Business. 

The private sector stakeholders have been calling on the government authorities to increase new plantations, roll out replanting efforts and explore avenues to increase productivity, he added. 
However, despite the repeated pleas, little progress has been made in 
this regard.

Productivity in Sri Lanka’s rubber sector remains one of the lowest among the competing countries. The smallholder productivity is 50 percent less compared to our main competitors. The primary reason for productivity remaining low is the resistance to embrace modern technologies for harvesting. 

As a result, in addition to other factors, Sri Lanka’s raw material production has dropped to 75,000 MT over the years from around 140,000 MT, Masakorala said.

The local rubber sector performed relatively well in the January-March 2022 period. During the period, the sector fetched export revenue amounting to US $ 252 million, which is a US $ 4 million drop when compared with the corresponding period of the previous year. 

The SLAMERP attributed the drop to a reduction in the exports of rubber gloves, due to the pandemic situation easing.

Last year, the rubber sector fetched about US $ 1.2 billion export earnings, the best year for the sector so far.
“This year too, as the world recovers from the pandemic, the demand for rubber tyres and other products will be high, with the expansion of global agriculture and infrastructure development. The demand for solid tyres too is steady, which is one of our key sectors,” said Masakorala.