ALUMINIUM SECTOR
Compiled by Yamini Sequeira
FORGING AHEAD
Pramuk Dediwela claims strategic partnerships can unlock aluminium exports
Q: What is the state of the aluminium sector in Sri Lanka? And how has it evolved over the years?
A: The sector has undergone notable transformation over the years, evolving into a key player within the construction and manufacturing industries, and industrial sector.
Once heavily reliant on imports, the sector has progressively strengthened its local manufacturing capabilities, enabling greater self-sufficiency and reducing dependence on foreign suppliers.
A notable advancement has been the integration of cutting-edge technology and diversification of product offerings. The introduction of world-class aluminium proprietary systems, developed under international licenses, has elevated the sector’s standards.
As the economy stabilises, the aluminium sector is gradually recovering with renewed investments in large-scale infrastructure projects, and increased activity in residential and commercial construction.
Despite this positive trajectory, several factors pose challenges: fluctuations in raw material prices, largely influenced by international supply chains and currency exchange rates, create cost uncertainties for manufacturers.
Policy inconsistencies and regulatory shifts also impact business planning and investment decisions. Furthermore, evolving market dynamics, including shifting consumer preferences and competition from alternative materials requires continuous adaptation and innovation.
Q: How does the aluminium sector compare with regional and world markets?
A: While the scale of aluminium production in Sri Lanka is smaller in comparison to regional giants such as China and India, the sector distinguishes itself through precision engineering, sustainability driven manufacturing and high quality customised solutions.
Innovation remains a driving force with continued investments aimed at expanding product offerings, introducing new surface finishes, improving energy efficiency and developing sustainable aluminium solutions that align with global trends.
The sector is committed to delivering premium aluminium products that meet both local and international standards while maintaining competitive pricing.
In addition, it actively promotes sustainability and responsible manufacturing practices. Some companies have gained prestigious certifications and membership of global organisations such as the Aluminium Stewardship Initiative (ASI), which advocates for sustainability across the aluminium value chain.
Q: What are the main challenges facing aluminium manufacturers?
A: A major challenge the sector faces is in regard to sourcing raw materials, as many countries rely heavily on imports for aluminium billets. This dependency exposes manufacturers to world price fluctuations and foreign exchange volatility.
Energy costs are another concern, given the energy intensive nature of aluminium extrusion and anodising processes. At the same time, compliance with environmental regulations demands substantial investments in green technologies and effective waste management systems.
Another issue is the absence of mandatory standards for imported aluminium profiles, which allows substandard products to enter the market, particularly in the windows and doors segments. This undermines Construction Industry Development Authority (CIDA) and Sri Lanka Standards Institution (SLSI) 1410:2011 standards, which are followed by most local aluminium extruders, failing to provide due recognition and application to the established guidelines.
Additionally, duty and tax free concessions granted to construction projects such as apartments and commercial buildings can undermine public mandates by promoting inequality, disadvantaging taxpayers and reducing the competitiveness of local industries. These concessions benefit only a few, creating an uneven playing field.
Q: And how is the sector adapting to sustainability trends?
A: Sustainability has become a central focus in the aluminium sector with many companies leading the charge in driving this transformation.
This is reflected in various strategic initiatives aimed at fostering sustainable growth, environmental responsibility and social impact across the value chain.
The sector actively invests in recycling efforts to reduce its dependence on primary aluminium and minimise its carbon footprint. Operations are increasingly adopting energy efficient extrusion and anodising processes with many manufacturers adopting solar powered facilities to reduce environmental impacts.
There is also growing emphasis on developing eco-friendly coatings and sustainable packaging solutions to align with global green building standards.
Q: What opportunities are there for export growth – and what steps are being taken to enhance competitiveness in international markets?
A: Sri Lanka’s aluminium sector has great potential in global markets, particularly in regions such as the US, the UK, Europe, Australia, Canada, Singapore and New Zealand, where the demand for high quality sustainable aluminium is increasing steadily.
The sector is actively investing in advanced extrusion technologies, expanding product certifications, and strengthening supply chains to enhance global competitiveness and establish Sri Lanka as a key player.
Furthermore, strategic partnerships and trade agreements play a vital role in unlocking new growth opportunities, enabling the sector to compete on equal grounds and drive expansion.
Q: What is the future outlook for the country’s aluminium sector?
A: The future of the sector appears promising, driven by rising global demand for sustainable and innovative aluminium solutions. Growth will be fuelled by technological advancements, improved recycling capabilities and the expansion of exports.
However, strong policy support, robust infrastructure development, and strategic investments in research and development facilities will be crucial in sustaining this momentum. Companies that adopt AI, digitalisation, automation and green manufacturing practices will be at the forefront of driving the sector.
