The Sri Lankan Export Development Board (EDB) sees that it is necessary to resolve the decline in rubber export earnings, as earnings have declined to levels below $ 950 million this year, EDB Chairperson Mangala Wijesinghe said at a Government press briefing on the export earnings of the past 10 months, yesterday (25).
“We see that the rubber (export) sector in the past, had export earnings that ranged between $ 1,300 million and $ 1,400 million on a yearly basis, which had declined to $ 950 million in the last few years. More recently that number has further declined below $ 950 million,” Wijesinghe said.
He further compared the segment to the coconut export segment which conversely saw a 43% increase in earnings, which have already crossed $ 1 billion in export earnings. “Whereas when we take the coconut sector, right now the earnings have crossed $ 1 billion in the last 10 months. This is a significant increase for the coconut export sector. The export segment has seen some export diversification, and so has production of goods increased.”
Wijesinghe said the main challenge of the segment was handling costs, and a noted decline in production, in light of the United States Government issuing its reciprocal tariffs this year, levelling Sri Lanka with a 20% country specific tariff, on top a 10% universal baseline tariff.
“However when you take the rubber export segment, largely the issue was the cost. We can see certain goods of the segment have seen a decline in production. Generally around 33% of the export segment’s production is for the US market. With the 20% tariff that is levelled this year, our exporters have been facing a certain level of discomfort.”
“First it was 44%, then it was 30% and now it is reduced to a 20% rate. They are currently experiencing a host of challenges in relation to this. They have asked for some government intervention to help with export diversification. For that the Government is ready to take a significant decision.”
Wijesinghe said that through the consultations for the National Export Development Plan (NEDP) with rubber industry persons, the EDB has been informed of the intention of the segment to increase export revenue to $ 3 billion. The timeline for this had however not been revealed during the press briefing.
“We have consulted various parties, especially rubber industry persons who have informed us that they wish to increase rubber export earnings from the existing earnings to $3 billion.”