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Tile imports yet to be permitted despite promise

07 Jun 2021

  • Government agreed on Rs. 490 per square m cess on tile imports
By Karen Hapuarachchi   The Tiles and Sanitaryware Importers Association (TSIA) informed us that there has been no progress yet on relaxing the import restrictions, even after the Finance Ministry agreed to implement a size-based cess of Rs. 490 per square metre on tile and sanitaryware imports.   “It has been a while since we heard an update. I suppose the progress of this matter is getting delayed due to the travel restrictions and the problems that have arisen due to the new (coronavirus) wave as well,” TSIA President Kamil Hussain told The Morning Business.   He further stated that it is crucial for measures to be taken against the challenges in importing tiles influenced by the tile and sanitaryware import ban. The TSIA also stated that the association is working on resolving the issues with the relevant state ministries and authorities to address the livelihood concerns of the workers and their families involved, as a mountain of debt has been accumulating since last year. He also mentioned that one of the prominent reasons why the Government should relax the current restrictions is due to the changes in the local market, as he mentioned that the shortage of tiles affects not only the local market for tiles but the construction industry as a whole. The Morning Business spoke to National Construction Association of Sri Lanka (NCASL) Chairman Susantha Liyanaarachchi to get a collective view of the industry players facing the shortage of tiles and sanitaryware. “We cannot even hope to get raw material tiles. How will normal consumers purchase these products for their household completion or repair? These are huge challenges,” Liyanaarachchi commented. He further added that the prices of tiles and sanitaryware were off the charts and there is a shortage of supply as well. Accordingly, consumers obtain loans, create BOQs (bills of quantities), and go through huge processes for construction projects. “If you look at the raw materials such as tiles and sanitaryware, the prices have gone off the charts. Companies such as Rocell find it very difficult to get raw materials from both international and local markets,” Liyanaarachchi stated. He further informed us that multiple price hikes (tiles and sanitaryware and the recent steel price hike) has led to slow progress in projects. It was also stated that consumers are unable to pay more to compensate for the increased costs for raw materials after accepting the contract and the advance, and also due to the effects of the Covid-19 pandemic causing financial issues for consumers. “It is a very dangerous situation. The Government should support this industry, as other industries are thriving amidst the recent wave and the pandemic overall, through the adoption of e-commerce. However, this industry needs relief from the pressure it is experiencing from all corners,” Liyanaarachchi commented. As per the TSIA conference held in March, Rush Lanka Group Representative Shabir Iqbal announced that the construction industry has not been able to complete contracts for clients due to the shortage of tiles in the market. Iqbal also stated that there is no variety in the local market in terms of tiles and he also mentioned the price hikes that have been occurring for the past few months. He also mentioned that local showroom employees have been informed of an ongoing shortage of tile stocks for around three months at the time. “Our projects have neared completion, but we have no idea what to do next. We have promised our clients imported tiles. Out of the goods that are used, 20% is imported and 80% is locally sourced,” Iqbal commented. He further stressed that the developers in the industry support local manufacturers of tiles, but the developers are not being helped in this case. Concerns were also raised that consumers end up paying more for less variety in tiles and sanitaryware.

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