Sri Lanka’s Trade Ministry eyes boost to local tyre industry
Daily FT: The Trade Ministry recently convened a meeting with representatives from the Local Tyre Manufacturers’ Association to explore strategies for boosting the domestic tyre industry.
Trade Minister Wasantha Samarasinghe in a post via Facebook noted that the discussions centred on reducing the country’s reliance on imported tyres, a move seen as crucial for conserving foreign exchange reserves amidst economic challenges.
The Association raised concerns about the high volume of tyre imports, which they claim have led to market oversupply despite the availability of locally produced options.
“To address this issue, the Association proposed implementing restrictions on tyre imports. Such measures they contended would not only support domestic manufacturers but also reduce the financial strain on the country’s limited foreign reserves,” they pointed out.
In response to these concerns, an agreement was reached to lower the prices of locally manufactured tyres, making them more affordable for consumers.
The Ministry emphasised that the price reductions must not come at the expense of quality, stressing the importance of maintaining international standards to ensure consumer confidence in local products.
OSL take:
Sri Lanka’s manufacturing industry is on a growth path showing great opportunities in expansion and an increasing business potential. It is in such a backdrop that the Sri Lankan government is looking at boosting the local tyre industry. The country’s manufacturing industry has received much support from the many trade agreements as well as trade concessions enjoyed by Sri Lanka with many foreign countries. Given the interest shown by the Sri Lankan government in supporting the local Tyre manufacturing industry, foreign businesses/investors could confidently explore the expanding business/investment opportunities in the industry while also looking at further expanding operations in and outside Sri Lanka through collaborations with local businesses. Foreign businesses/investors could also look at exporting the locally manufactured tyres in the foreign markets.
Article Code : | VBS/AT/20250107/Z_8 |