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Rubber research facility in operation by end-2021

29 Aug 2021

  • Infrastructure work in progress
By Yakuta Dawood The proposal that was announced during the Budget 2019 to establish a fully fledged rubber research facility in Sri Lanka to benefit local tyre producers who have no access to testing and prototyping. will finally begin operations by December 2021, The Sunday Morning Business learns.  Speaking to us, Rubber Research Institute of Sri Lanka Additional Director Dr. V.H.L. Rodrigo expressed that they are hoping to commence a few operations under the testing and prototyping tyre facility by the end of this year, with the two instruments they have right now. “We are currently developing the infrastructure and with the two new instruments, we are hoping to establish the facility by the end of this year. With this establishment, small and medium-scale enterprises (SMEs) will benefit and it will also promote tyre manufacturing in the country,” Dr. Rodrigo explained. When inquired as to the reason behind the delay to establish the facility, he stated that the total cost of Rs. 500 million provided by the Export Development Board (EDB) in 2019 was insufficient to purchase equipment for the facility. “We received another Rs. 500 million from the EDB this year and hope to receive another Rs. 150 million next year, in 2022. Also, the procurement is getting delayed due to the ongoing Covid-19 pandemic. Hence, even though the fully fledged facility will take a few more years to be fully operational, some of its operations will hopefully start by the end of this year,” Dr. Rodrigo added. However, attempts to receive a response with regards to this subject from the EDB proved futile.  With reference to the EDB, 70% of natural rubber production in Sri Lanka is consumed by the rubber products manufacturing sector for local sales or predominantly for the lucrative export market. Even so, Sri Lanka is only capable of producing 50% or less of the demand, thereby resulting in 50% of raw materials being imported from other countries to facilitate local manufacturers. However, to curtail challenges present in the rubber industry and to attract foreign investment with an aim to expand the local rubber industry in Sri Lanka, the Sri Lanka Association of Manufacturers and Exporters of Rubber Industry (SLAMERP) and the Board of Investment (BOI) are also currently in the process of initiating a new rubber investment zone in Sri Lanka to improve manufacturing.  Speaking on this subject, SLAMERP Director General Rohan Masakorala stated that the new investment zone will attract foreign investment with an aim to expand the local rubber industry in Sri Lanka.  “This zone will be entirely dedicated to rubber product manufacturing. There is a progression in the plan firstly because the Government and BOI have started looking for an appropriate plot of land in the Western Province, and secondly because the private sector rubber companies have started submitting their expansion plans,” Masakorala said.  We also spoke to BOI Executive Director – Investment Promotion Prasanjith Wijayatilake, who stated that the rubber industry concept is one of the three main concepts the BOI is currently working on to be initiated within the year.  “We are looking at the apparel and pharmaceutical zones right now. In terms of the rubber city zone, we are looking at two plots in hand, and one will be chosen within this year. However, with the current hindrance due to Covid-19, it could be further delayed,” Wijayatilake stated.


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