RUBBER INDUSTRY
Tapping Sri Lanka’s Potential
Mangala Gunasekera sets his sights on advancing the nation’s rubber industry
At the outset, Mangala Gunasekera affirms the rubber industry’s commitment to bringing revenue into government coffers while expressing his gratitude to the president, the armed forces and the Ministry of Health – including the health minister – “for having arrested the COVID-19 pandemic in an exceptional and excellent manner.”
Elaborating on the rubber industry’s immediate reaction to the pandemic, he says: “Despite losing working time during the curfew, which adversely affected the rubber industry supply chain, we have bounced back thanks to the support received from the Sri Lanka Association of Manufacturers and Exporters of Rubber Products (SLAMERP), and the Export Development Board (EDB).”
Gunasekera also pays tribute to “the maximum support received from the police in Bentota, Aluthgama and Matara, in addition to the Divisional Secretariat and regional hospital in Bentota.”
With the virus largely associated with the body’s immune system as the strongest gateway or platform, Gunasekera notes that “we specialise in progressive resistance bands and these are in continuous cross border demand.”
The rubber industry per se hasn’t been affected by the COVID-19 crisis as the demand for gloves and health related sanitary products has increased, according to Gunasekera, who adds: “However, demand from the tyre sector may face a temporary setback.” Nevertheless, when countries are committed to full-scale production, manufacturing is expected to revert to normalcy. Commenting on the regional scenario, Gunasekera asserts that as “our neighbour’s house is not in order, the risk looms large until a proper vaccine is found to counter COVID-19.”
Due to the pandemic, existing contingency plans and company laws may need to be revised to facilitate business continuity – e.g. legal requirements for notice of shareholders’ meetings and laws relating to force majeure in contracts being accounted for in the statute book.
“We trust that the Attorney General’s Department is well equipped to address this,” Gunasekera adds.
According to the Asian Development Bank (ADB), Sri Lanka must develop expertise, products and services, and improve worker productivity to compete with global rubber industry leaders in high income earning countries.
Gunasekera explains that other measures such as upgrading technological competencies, innovating capacity enhancements, and improving workforce performance and productivity are among the key success factors when it comes to industrial manpower concerns.
“By learning global industry dynamics, companies need to uncover hidden opportunities in the context of new demands from end users,” he elaborates, adding: “To achieve such operational excellence, companies have shifted rapidly to value addition for new products in the rubber industry. This transformation needs to be fostered and managed to optimise outcomes.”
There are serious concerns regarding rubber plantations in the long term due to a shortage of labour as a consequence of recurrent constraints arising from the migration of labour; and to this end, Gunasekera avers that “there remain human rights issues besides sanitary concerns on estates – especially those managed by regional plantation companies (RPCs).”
He remarks that going forward, certain steps can be taken for the rubber industry to stay relevant and future proof: “Nurseries must be well maintained with target oriented replanting programmes if necessary and under-cropping… Estate schools should be maintained as deemed necessary – with a suitable mode of transport wherever applicable – and proper recreational facilities are needed.”
Gunasekera notes that such endeavours also bring about challenges to keep the cost of production under check.
“All these matters point to a shortage of raw material – i.e. the latex output of estates. Moreover, RPCs should be further strengthened to ensure their replanting programmes are on target to ensure a smooth supply chain for the short and long run of the rubber industry,” he sums up.
Mangala Gunasekera is the Managing Director of Textrip – he was interviewed by Lashani Ramanayake.