Financial Times

Sunday Times FT story brings results

The government last week banned the export of steel scrap and nonferrous scrap including brass, copper, and aluminium in a quick response to last week’s The Sunday Times FT story on this issue.

The cabinet decision to ban the export of steel scrap and nonferrous scrap of all forms for six months was conveyed by Industries Minister Kumar Welgama to the Foundry Development Services Institute.

Its chairman Melvin Samarasinghe said this decision will keep over 3500 small and medium industries alive and its 300,000 stakeholders alive for the next few months. “However the industries feel that many more steps are required for long-term sustainability of the industry,” he said.

The Sunday Times FT report said Sri Lanka’s steel industry is in the throes of a major crisis as over 600 industries with more than 40,000 workers face imminent closure due to a shortage of raw material and uncontrolled export of raw material to India.

Already seven steel plants have shut down leaving 1,000 workers in the lurch, an issue that has been raised by the trade in a letter to the Board of Investment (BOI) blaming one particular Indian manufacturer for unethical trade practices, it said.

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