Lankan ceramics industry urges renewal of GSP+
Renewing the GSP+ for exports in the European Union will help Sri Lanka recover cross markets in ceramics, a top official said, adding “in the past few years we have lost many markets due to the loss of GSP+”.
Sri Lanka Ceramics Council (SLCC) President Mahendra Jayasekara made these comments while speaking at this week’s 10th Annual General Meeting of the council held in Colombo,
He said while Sri Lanka has lost many markets during the past few years, exporters need to look at many traditional markets in Europe and North America.
“The industry has shown resilience in the face of challenging domestic and global economic conditions. One big challenge we face today is that a great number of countries joining the European Union resulting in clear emerging markets in Europe,” he told the audience.
Mr. Jayasekera also said the government should implement a clear mechanism to regulate mining of raw materials for the ceramics industry of Sri Lanka. Uncertainties with regard to mining have played a major role in discouraging companies to expand their factories.
He said the industry has not expanded fast enough over the last few decades mainly due to the lack of capital and also lack of clarity on government policy towards raw material and the level of protection accorded to the industry.
Although there is high tariff and cess on imports, the Board of Investment (BOI) is granting duty free import permission to relatively small investments as small as Rs. 50 million. “This runs counter to government’s stated policy of protecting local industry,” Mr. Jayasekara added.
He also said “the government should implement a clear mechanism to regulate mining of raw materials, especially ball clay by developing a policy as to how mining in abandoned paddy lands will be allowed as ball clay deposits occurs mainly in low lands”.
The industry as a whole is running under capacity in the first quarter owing to a sharp fall in domestic demand for ceramic products based on low level of activity in housing construction and also declining disposable income.
Export markets have so far held ground as some companies have reported growth in exports mainly due to them capturing niche markets.
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