Plastics industry poised to grow at 10-15%

Thursday, 24 July 2014 00:00 - - {{hitsCtrl.values.hits}}

“The plastics industry in Sri Lanka is poised to grow at 10-15%, above the country’s GDP growth rate,” says P.P. Perera, Industry Consultant on Plastics & Rubber, Executive Council Member of the Plastics and Rubber Institute of Sri Lanka (PRISL). PRISL, together with Enterprising Fair India, will conduct the second edition of SRILANKA PLAST – a plastics expo (www.srilankaplast.com) and the first edition of RUBEXPO – a rubber expo (www.rubexpo.com) on 14, 15 and 16 August at the BMICH. Following are excerpts of an interview conducted with Perera:

How big is the plastic and rubber industry in Sri Lanka?

Plastics consumption is 200,000 MT per annum. There are close to 1,000 companies, the majority of them are in SME sector. Around 40% of them engage into exports. The value of exports of plastics in 2012 from Sri Lanka was close to $ 60 million while the import value during the same period was 600 m, which is 10 times more than the exports value. The rubber industry is a traditional resource based industry in Sri Lanka. Sri Lanka is the eighth largest producer and sixth largest exporter of natural rubber. Annual rubber production is currently 135,000 MT and meets approximately 1.3% of world’s consumption. The largest producer and supplier of solid tyres in the world and holds a market share of 45%. Sri Lanka is the largest producer of latex crepe and sole producer of thick pale crepe. Export of rubber grew to $ 1 billion in 2011-12. In 2012 alone the export value is four times the value of the import of rubber. About 25,000 MT of synthetic rubber is imported.

What are the opportunities available for plastics and rubber industry in Sri Lanka?

In the plastics industry in Sri Lanka is poised to grow at 10-15%, above the country’s GDP growth rate. This will be due to the growing demand of packed foods and growing number of modern retail outlets. In rubber, the Government proposes to increase the annual production to 200,000MT and achieve a growth of exports to $ 2.5 billion. The Vision 2020 document of the Government of Sri Lanka proposes to achieve these goals for rubber industry by facilitating cultivation, introduction of modern technology and providing access to export markets.

Why did you decide on organising an event of this nature in Sri Lanka?

As a catalyst that encourages trade, we are happy to launch two significant expos focussing on plastics and rubber, which play an integral part in local export earnings. As a developing nation Sri Lanka is opening up with its economy and infrastructural advantages, there is no better time than this to open up the country and inviting international businesses to experience its riches. With the ambitious goals set for the plastics and rubber industries, the need of the hour is new technologies, cost effective manufacturing practices and access to outside knowledge available for these two industries. Also not all companies can afford to visit world renowned expos like ChinaPlas or K Fairs, and hence it is our endeavour to bring expos of this kind to their door step.

Who are the parties behind organising this event? Who are the partners and supporters?

As the apex body of plastics and rubber industries of Sri Lanka, PRISL has chosen to partner with a B2B expo business firm from the neighbouring country India, which is Enterprising Fairs India Ltd., which specialises in holding B2B fairs in India, East Africa and posed to grow into other developing countries. We have also mustered support from the Ministry of Industry and Commerce, Export Development Board (EDB) of Sri Lanka, Industrial Development Board (IDB), Rubber Research Institute of Sri Lanka (RRISL) and Central Institute of Plastics and Engineering Technology (CIPET).

What can we expect at the exhibition?

Over 160+ exhibitors from countries like India, China, Taiwan, Italy, Japan, Philippines and Sri Lanka will be showcasing their machinery, technology and material. There will also be an exclusive guidance booth where young/budding entrepreneurs can get guidance/advice to set up business in the industry with support from EDB and IDB also.

What are the key issues the industry is facing?

The industry faces issues such as high cost of energy, high cost of finance, lack of modern technologies except in large multinationals, low profile SME sector and work force development issues.