Tiles and Sanitaryware Importers Association (TSIA) said that a level playing field should be created between them and the local manufactures.
“While 51% of the market share is owned by local manufacturers, the importers are surviving in the industry with a 49% of market share,” said President, TSIA, Kamil Hussain at a Press conference in Colombo yesterday.
“There are only three local manufactures that are provided with 100% plus protection and a fuel subsidy for their production. In addition most government tenders, even though they are 20% higher priced are awarded to local manufactures.”
He said that with the present depreciation of the rupee they are faced with bigger issues as they buy in dollars and sell in Sri Lanka rupees. He said the local tile and sanitary industry import value is around at Rs. 12 million and they pay Rs. 6 million as taxes.
“While the local manufacturers have been out there for a long time in the market, it has been detected that the sector has several weaknesses to retain competitiveness in the industry which also includes decreasing of local value addition.”
“The local Ceramic industry is a highly energy consuming production field and also has severe environmental issues, said Secretary, TSIA, Erwin Bulathsinghala. “As an economy relying heavily on tourism, it is important to maintain environmental quality and consider about other industries to sustain and co-exist in Sri Lanka”. “The low population, geographical and other factors have elevated the production cost and curtailed the local production industry to be less competitive”, he added.
“it’s not correct to say that tile and sanitaryware imports to Sri Lanka are junk products that India, China, Indonesia or other markets aspire to get rid of. The tiles imported into Sri Lanka are scrutinized 100% checked for SLS standard which is equivalent to ISO standards, since at least 10 years. Tile cargos are released from the customs, only if the tested samples are approved by Sri Lanka Standards Institution (SLSI).”
“These same products are equally quality assured as the products exported to other countries.”
Statistic reports in Sri Lanka Standards Institution (SLSI) show that the rate of such rejections for low quality products has seen a drastic reduction over the years.
Former President TSIA D. Vigneshwaran said that there are around 200 importers and over 10, 000 employed in the sector. “Since government has already provided protection to the local manufacturing industry we believe that it’s time for the Government to consult and encourage the manufacturers to explore avenues where they can be competitive and thriving.”
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