Automobile component manufacturers look to NPP’s futuristic industrial policies to boost industry

• Sri Lanka currently exports over $ 800 m worth of tyres, auto components, automobile related wire harnesses, and other electric items; 10-year industry plan envisions exports rising to $ 3 b

The Sri Lanka Automobile Component Manufacturers Association (SLACMA) yesterday extended best wishes to Anura Kumara Dissanayake on being elected as the new President of Sri Lanka and said it looks forward to NPP’s futuristic industrial policies to uplift the automobile industry.

“It is commendable to see automobile assembly and automobile component manufacturing included in the NPP policy statement,” said the Association’s President Dimantha Jayawardena.

“Manufacturing automobile components has been chosen as a thrust industry,” he said. “The Standard Operating Procedure (SOP) to promote the local industry with domestic value-addition of locally manufactured components has helped local manufacturers to enter global supply chains. The SOP makes it mandatory to use local components. To do this, local manufacturers have to go through stringent manufacturing and quality standards of the Original Equipment Manufacturers (OEMs).”

He also said that currently there are global brands assembling in Sri Lanka. The project is monitored by the Industries Ministry with a Cabinet-appointed Committee with representatives from the Finance Ministry, Sri Lanka Customs, Import Control Department, Transport, Department of Motor Traffic Ministry and several other Government institutions that monitor compliance.

“Currently, Sri Lanka exports $ 200 million worth of auto components, $ 200 million worth of automobile related wire harnesses, and other electric items, and $ 400 million worth of rubber components, tires, and solid tyres, bringing the total to around $ 800 million in the sector. The Industries Ministry has a 20-year master-plan. With the increase of electric vehicle (EV) manufacturing, the SLACMA is looking into promoting Sri Lanka as a wire-harness and other electric component manufacturing hub for electric vehicles. With the NPP policy statement clearly defining the development of automobile manufacturing and component manufacturing, the SLACMA and its 60-manufacturer members are very positive about the future. The SLACMA will continue to work with stakeholders and policymakers to promote the industry and make more export-oriented revenue by entering global supply chains,” he added. 

“The 10-year plan of the Industries Ministry, the Export Development Board, and the Board of Investment (BOI) is to achieve $ 3 billion through exports from this sector. We are confident that this can be achieved.”