Sri Lanka is looking forward to promote value-added rubber exports and also reduce rubber imports to the country.
“Considering the increase in price of natural rubber in the international market, the cess on export of raw rubber, has been increased from Rs. 8 to Rs. 12 per kilo gram,” said Industry and Commerce Minister Rishad Bathiudeen. “The cess imposed on rubber exports will serve as a measure to channel more resources to the value added industry by discouraging exports in raw, unprocessed forms,” he added.
The Minister was addressing Parliament on the amendment made to the Sri Lanka Export Development Act No. 40 of 1979. The Amendment, by an Extraordinary Gazette Notification No. 1712/23 dated July 01, 2011 increases the cess on export of raw rubber, and was tabled on September 21 for ratification by the House. The order under the Sri Lanka Export Development Act was passed by the House on the same day.
The statement tabled by Minister Bathiudeen said: “In recent times, the prices for natural rubber have been in the upward trend in the international market. The price of a kilo gram of rubber, which was around Rs. 348 in January 2010, has increased to Rs. 611 in January 2011. While there is an increasing trend in the export of natural rubber, the government has given priority to the promotion of exporting finished rubber products as a policy. Considering the increase in price of natural rubber in the international market, the cess on export of raw rubber, has been increased from Rs. 8 to Rs. 12 per kilo gram or 2% of the F.O.B price whichever is higher. In fact, Sri Lanka Association of Manufacturers and Exporters of rubber products has, in a letter addressed to me recently, urged to revise the cess on export of natural rubber to Rs. 24 per kilo gram. Rubber manufacture is a major component of the Sri Lanka’s economy.
“As the world’s seventh largest natural rubber producing country, we offer many types and grades of rubber such as RSS, pale crepe, sole crepe, technically specified rubber and specialty rubber. Our rubber products are exported to sophisticated markets such as Europe and USA and do not have any problem in adhering to international standards. The range of products covers industrial products such as solid tyres, auto components, conveyor belts, hoses and tubes, while latex based products include industrial, household and surgical gloves. General rubber products include, doormats, rubber bands, sports goods, footwear and footwear components.”
The shortage faced by the industry has compelled the importation of raw rubber. Sri Lanka imported raw rubber to the value of US$ 101 million in 2010 and to the value of US$ 105 million from January to July this year. Last year, Sri Lanka exported rubber in raw form to the value of US$ 170 Million and rubber finished products to the value of US$ 567 million. Therefore, clearly, local raw rubber channelled to the industry will save valuable foreign exchange, it was noted.
source - www.dailymirror.lk
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