SLACMA says Budget 2021 will usher new era for automotive component manufacturers

• Says 3 key proposals in budget will assist local auto industry immensely
• Hopeful for industry to create increased number of jobs in near future 
• Says in talks with 7 top auto firms to supply locally assembled and manufactured components

The Sri Lanka Automotive Component Manufacturers’ Association (SLACMA) yesterday welcomed the Budget 2021 describing it as a ‘new era for local automotive component manufacturers’. 

In appreciation of the government’s efforts to encourage entrepreneurs engaged in vehicle assembly using locally manufactured brand-new auto components, SLACMA President Dimantha Jayawardena said the Budget 2021 proposes to implement three key policies, which will assist the industry immensely. 

They are local automotive assembly using 30 percent of locally manufactured brand-new parts; promotion of local automotive products by giving them preference in government tenders (domestic preference) and eliminate unfair competition for local auto manufacturers by preventing under-invoicing by importers. SLACMA has submitted a 10-year master plan to the Finance Ministry as a crucial step to take the local assembly industry and component supply to the next level, as they seek quality certification from their regional counterparts to boost growth. 

The Association reiterated the role of the Finance Ministry under Prime Minister Mahinda Rajapaksa, Ministry of Industry and Supply Chain under Minister Wimal Weerawansa, Vehicle Regulation, Passenger Transport Services, Railway Carriages and Automobile Industries under State Minister Dilum Amunugama, the Department of Motor Traffic, the Export Development Board and the Board of Investment of Sri Lanka for their active support in driving this policy forward. 

SLCMA said it is currently in talks with seven world renowned automobile companies, in order to supply locally assembled and manufactured automobile components. 

Jayawardena  was confident that many jobs could be created in the coming months with the future of the industry looking good.