More investment and collaboration urged in rubber sector to capitalise on high demand

Sri Lanka’s rubber sector requires more investments and collaboration among industry players to capitalise on the high demand in the world market for the country’s high-quality natural rubber, a leading rubber product manufacturer in the country said.

“The rubber sector needs more investments, private and public, foreign and local and thereby common industry infrastructure facilities will improve. Collaboration among industry players in precompetitive areas will lead to synergistic effects in industry operations,” Samson International PLC, a unit of DSI Samson Group, told its shareholders in its latest annual report.

Sri Lanka’s natural rubber is in high demand in the world market, due to its unique properties.

The company in particular highlighted that Sri Lanka has a premium quality natural rubber type known as Lankaprene, which is odour-free to a certain extent, light coloured and clean, is ideally suited for medical equipment and upmarket value-added products.

However, as per the projections, Sri Lanka’s average rubber yield is expected to remain unchanged at the current low level of 1,042 kg/ha, even in 2024. Further, the country’s raw rubber production, which has been on a declining trend, is projected to decline by a further one percent by 2024.

“The competent workforce with right attitudes and training will be more productive, resulting enhanced earnings and lower turnover, making the rubber industry more attractive for employment,” the company pointed out.

The company also noted that the rubber prices may not go up in the international market in the near future, since the demand for natural rubber has witnessed a decline in key Asia Pacific and European markets.

Sri Lanka produces 0.6 percent of the world’s natural rubber production, which is around 81,000 metric tonnes per annum. Sri Lanka exports almost all types of natural rubber available in the market, including ribbed smoked sheet rubber, latex crepe rubber, scrap crepe, all grades of technically specified rubber, centrifuged latex and specialty rubbers.

However, the country imports a large amount of raw natural rubber and synthetic rubber for local consumption and value-added exports.

Sri Lanka’s rubber industry is positioned as the fourth largest source of foreign exchange for the country, accounting for approximately 8 percent of the merchandise export income. Samson International brings in over Rs.600 million per annum from exports of rubber- related products such as sealing rings, hot water bottles and mats and floorings, etc.