Tyres, tubes Hot water bottles Auto part Industrial components Gloves, condoms, balloons Boots, shoe soles Jar seals Carpets, mattresses Natural rubber Synthetic rubber Chemicals, dyes and moulds Others

Overview of the Sri Lankan rubber industry

The history of Sri Lanka's rubber production dates as far back as 1876. th th Today Sri Lanka is the world's 9 largest producer and the 10 largest exporter of Natural rubber (NR).While the latex coming out from the< rubber tree is used in the manufacture of various rubber products, even the timber is used, in treated form for producing furniture and other timber based products. The rubber industry generates employment to a vast number of people mainly from rural areas. Starting from the tapping of latex to the manufacture of semi finished or semi processed rubber and rubber products (primary products) and moving forward to the manufacturing of value added products combined with those involved in trading the rubber industry provides employment for over a 200,000 people.

Sri Lanka is a major supplier of high quality latex crepe to the world market and the worlds largest manufacturer and exporter of solid tyres for Off-road vehicles. Almost 60% of the natural rubber production of Sri Lanka is used for value added products. The bulk of these valueadded products are for the export market. Foreign investors from 20 countries have set up lucrative and long standing world class ventures under BOI approval. Sri Lanka can boast of supplying some world reputed brands of industrial tyres, household and industrial gloves and solid tyres. The 59 BOI approved rubber industry projects consume nearly 75% of Sri Lanka's total domestic natural rubber produce. However, there is potential to grow the industry further and to explore diverse areas of production.

The total world import of rubber & rubber based products in 2006 recorded at EUR 30 billion to the Netherlands. Sri Lankan exports of rubber and rubber based products was limited to EUR 27 Million. In the tyre industry the world import values of new pneumatic tyres to the Netherlands alone was EUR 9 billion, and retreaded or used pneumatic tyres of rubber; solid or cushion tyres, tyre treads and tyre flaps, at EUR 21 million. Sri Lankans exports in the specific products was EUR 0.93 million and EUR 3 million . The pneumatic tyre industry can be identified as a potential market to further explore.

Sri Lanka’s competitive advantages in the rubber industry

• Availability of high quality raw rubber at competitive prices.
• Recognition as a high quality natural rubber (Latex Crepe) producer.
• Sri Lanka has global leaders and world renowned products that attest to the superior quality of its use of latex technology
• Access to a pool of technical and professional manpower at competitive wage rates.
• Attractive incentives.
• Good infrastructure.
• Quality assurance by stringent certification procedures (ISO 9000, 1400, BS,ASTM,JS,CE)
• Competencies built over 124 years of experience in the industry.
• Availability of supporting services (research & development facilities, testing & certification services).

Many of the local rubber manufacturing companies are pro actively looking for partners for joint ventures in order to elevate and diversify from the existing areas and scope of business.