Sri Lankan glass company says exports could be boosted with oil priced on a formula linked to crude oil
Sri Lanka’s Piramal Glass Ceylon Plc has reportedly stated that it can compete better with foreign producers and boost exports if furnace oil is priced on a formula linked to crude oil.
Furnace oil now costs 92 Sri Lanka rupees a litre, and it is not linked to crude oil prices.
Chief Executive Sanjay Tiwari has been quoted in the local media as saying that the comparable cost in India is Rs. 72.
“Furnace oil prices linked to crude oil will make exports more competitive,” Tiwari has observed.
“We are not asking for subsidies.”
Piramal Glass now exports to about 150 containers a month with about 45 containers going to India and exports are sent to the USA, Canada, Australia, New Zealand and Myanmar.
“We are working on to increase our exports percentage to total capacity up to 40 percent,” Tiwari has said. “This may take two years.”
According to reports, the company is now building a fifth production line with an investment of Rs. 1.3 billion.
The new line will increase capacity to 300 tonnes per day from the current 260 tonnes.
OSL take:
The statement by Sri Lanka’s Piramal Glass of confidence in competing better with foreign producers and boosting exports with a furnace oil price formula linked to crude oil prices is indicative of the strength of local companies. Also to be confident of boosting exports is an encouraging sign for foreign businesses interested in doing business with Sri Lanka. The country already enjoys several free trade agreements and trade tariff concessions with many foreign countries. Therefore, Sri Lanka is growing fast to becoming a sought after business destination for foreign businesses/investors.
| Article Code : | VBS/AT/22022019/Z_2 |