Local boat builders and exporters show resilience despite slow global growth: Minister
Sri Lanka’s footprint in global boats and shipping sector may be smaller, but Lankan exports in it continue to surge in strong numbers.
As a result Sri Lanka is ambitiously positioning for US$ 200 million boats and shipping exports by 2022.
“Global ship and boat building industry has slowed down with lessening demand due to global economic pressures. Despite this, it is interesting to note that Sri Lankan boat builders and exporters have shown resilience and even increased export revenues,” said Industry and Commerce Minister Rishad Bathiudeen, at the launch event of the Boat Show Sri Lanka 2018, held at Cinnamon Grand Hotel on June 14, 2018.
‘www.srilankaboating.com’, the pioneering web portal for the Lankan boating industry was also jointly unveiled on this occasion with International Trade Minister Malik Samarawickrama, Tourism Minister John Amaratunga, Industry and Commerce Minister Rishad Bathiudeen, EDB Chairperson Indira Malwatte and Boat Building Technology Improvement Institute Chairman Neil Fernando. “This show will be the first ever marine festival in Sri Lanka, organised to showcase the country’s capabilities in marine tourism, recreational boating and yachting boat building and related services for export and local markets,” said Bathiudeen.
He further went on to say that: “The event is expected to provide ample opportunities to network shop connect and get in to know among the best of the marine industry of the region. The National Export Strategy (NES) of the Export Development Board with technical assistance of the International Trade Centre, Geneva, has included the boat and ship building sector as one of the priority sectors to be actively promoted in the export strategy. As a result, the Budget 2018 allocated Rs.100 million for the initial activities of promoting investment in the infrastructure development required for the boating industry.” Meanwhile, acknowledging the backlash in the local boat and export industry as opposed to the slow global growth, Bathiudeen added: “I am pleased that this event is announced in a background of new reports we receive about increasing export revenues from our boats and ships sector. Last year our boats and ship exports increased by 50 percent to US$ 97 million in comparison to US$ 65 million in 2016. Many Lankan companies are involved in making boats and ships while 11 identified companies are in exports. I thank all the workers and companies involved in this sector for their commitment to develop our manufacturing and exports.”
Cey-nor Foundation Chairman B.K. Jagath Perera revealed that the government is aiming US$ 100 million boat ans ship exports in 2018.
Perera said: “The 2017 total exports of US$ 97 million does not include our re-exports of ships and boats, which is US$ 157 million by such firms as China Harbour Corp.”
Sri Lanka, under its new National Export Strategy, targets US$ 200 million exports in this sector by 2022.
Global boats and ship building industry, despite its slowdown, is valued US$ 169 - US$ 170 billion annually.