TSIA calls govt. to do away with protectionist policies

Tiles and Sanitaryware Importers Association addressing the media at Jaic Hilton Colombo Residences

By Shabiya Ali Ahlam 

The Tiles and Sanitaryware importers yesterday urged the government to do away with its protectionist policies, as impacts of the same are more detrimental than constructive to the national economy. 

With local manufactures of ceramic ware lobbying to expand the existing protection they enjoy, the Tiles and Sanitaryware Importers Association (TSIA) stressed the move would be unfair and will create a monopoly in the industry which by no means should be encouraged. 

“Excessive protectionism is not good for Sri Lanka and the industry. It is our belief that if you cannot compete to global standards and rates, then you are not going to export from Sri Lanka, regardless of the industry,” TSIA President Kamil Hussain told journalists yesterday addressing a press conference held educate on the prevailing status of the industry. 

He elaborated that the continuous focus on protectionism has only resulted in the industry becoming stagnant. According to the TSIA, the added support for local manufacturers in the tiles and sanitaryware space has not only negatively impacted the entire industry, but has slowed down the local construction industry 
as well. 

Last week the Ceramic and Glass Council requested from the government further tax concessions, reinstatement of CESS and lower furnace oil prices to further boost competitiveness. 

However, currently the manufacturers already enjoy over 100 percent import duty in addition to other taxes that have been extended as protection.  While Sri Lanka has over 200 tiles and sanitaryware importers holding 49 percent of the market share, local manufacturers are just two in number and enjoy 51 percent market share. 
The TSIA also pointed out that the importers are at a disadvantage even during the government tender process, since local manufacturers are given priority and preference, and the additional cost is passed on to the consumer. 

Unable to cope with value addition, the TSIA highlighted that local manufacturers have started importing materials in recent times, which is much to their advantage. 
It was also stressed that while ceramic production is highly  energy consuming, it makes little sense to support the manufacturing which the country won’t be able to gain much from and be competitive. 

Currently Sri Lanka imports tiles and sanitaryware from India, China, Vietnam, Indonesia, Italy and Spain, amongst other countries. 

The TSIA also stated that it has been alleged the imported goods are substandard, and efforts are being made to include the sector in the Anti-Dumping bill. 

“The products imported are equally quality assured as these are exported to other countries as well. The tiles imported into Sri Lanka are scrutinized by policy makers to 100 percent check for SLS standard which is equivalent to ISO standards for the 10 years. 

Tile cargos are released from the customs, only if the tested samples are approved by Sri Lanka Standards Institution (SLSI) and this affirms quality,” said Hussain. 
By the way of taxes and duties, tiles and sanitaryware importers pay the government Rs. 6 billion annually. The entire industry, with local manufacturers and importers is valued at Rs. 25 billion.