Introduction to the Industry In 1867 introduced by British men Sir Henry Wickham was

planted 1st rubber tree in Henarathgoda Botanical Garden Gampaha.

Mostly growing in Kegalle ,Rathnapura & Kaluthara

Mainly produces 2 categories of rubber in the industry

Natural rubber

Synthetic Rubber

Currently produces around116 ,000 MT of Natural Rubber per year

10th largest producer of rubber in the world and 6th largest in Natural Rubber

1.08% of global production of NR Source –Association natural rubber producing countries 2014

Main grades of NR are Ribbed smoked sheets(RSS), Different type of Crepe rubber, Technically specified rubber(TSR) & latex concentrate

Mainly industry manufactures Pneumatic and solid tires and other manufactures gloves , mats ,footwear's ,meters & etc.

Tires -60% of exports Gloves _30% of exports Others -10% exports Sri Lanka produces rubber & rubber products for

International brands such as CONTINENTAL, SOLIDEAL, WONDER GRIP, SAFETY WORK, etc.

Exports earnings USD 70.50MN(jan to sep 2014 annually & growing steadily

Products

Source- Export Development board/Department of rubber development FAO web site

Market Annually Global industry grows 4% -6% Major exporting countries are

USA ,Germany ,Belgium ,Italy ,UK Semi processed rubber destinations are Pakistan,

Malaysia, India, Japan & Germany

Source –Export Development Board

Environment Analysis for Industry

Political Environment

opportunitiesMaking economical agreements with foreign countries. Encouraging employeesProvide subsidies

challengesEconomical barriersInfluence of pressure groups like unions.

Economical Environment

Opportunities

Reduce tax from exportersGovernment support for small rubber holdersGiven fixed price for natural rubberEmerging markets and expansion abroad marketsIncreased importers tariff & non tariff barriers

Challenges

Decline in the prices of NR Import of rubberProduce rubber within main export countries

Source-Sri lanka Export Development Board /Department of Rubber Development

Socio cultural environment

OpportunitiesEnhance quality of life through developing infrastructureStartups rubber tapping training programs

ChallengesSmall rubber lands % minimize due to urbanizationShortage of skilled rubber tappers for NRDue to market price decreases industry workers lost their joblabors are not willing be the workforce of plantation sector

Technological Environment

OpportunitiesAutomation of production processes.Improved quality of parts & end products.Significant cost savings.

ChallengesHigh cost of introducing new technologyDifficult to make machines to tapping rubberLow interest of the rubber small holders in utilization of new technologyShould find new rubber clones

Environmental Factors

OpportunitiesExpanding rubber cultivation to non traditional areas.High degree of environment friendliness through the natural forest cover provided by the rubber plantations and substantial carbon sequestering.

ChallengesEnvironmental pollution due to value addition operations in industriesLimited land for growing NRRubber industry consumes large volumes of water, uses tone of chemicals and other utilitiesProduction of NR heavily depends on weather conditions

.

Legal Factors

Rubber Replanting Subsidy Act No.36 of 1953

Rubber replanting ,rubber new planting intercropping, modernization of rubber factories and system control

Rubber Control Act No.11 of 1956

Registration of all rubber estates and small holdings

Issue of permits for new planting and replanting of rubber

Issue of permits to rubber manufactures

Issue permits for rubber dealers Regulations for Cess made under the Rubber Replanting

Subsidy (Amendment) Act No.20 of 2006.

Source –performance report of 2011-2012 Rubber development Department

Recommendations for improve industry Construct the most efficient facilities in terms of scale or technology.

Replacement of aging rubber tree stock and factories. Use the low cost production advantage to keep out

competition. Revising Cess Levy in respect of the decline in the

price of rubber Taking necessary actions to set a fixed price for rubber

and practiced it. Use its cost leadership position to penetrate the

market & develop brand loyalty. Develop marketing network

Provide technical exposure to SME manufactories. Through technology that would create various products to

export rather than exporting raw rubber or rubber sheets(value addition)

Source –Ministry of plantation industries strategic plan 2011-2015-Export Development Board Rubber Development board reports