SLACMA Optimistic on Market Growth

Sri Lanka’s automotive component manufacturers remain optimistic about growth despite recent economic challenges. With strong support from the Ministry of Industries and SLACMA initiatives focused on certification, financing, and global partnerships, the industry is positioning itself for export-led expansion toward a $1 billion target.

With the opportunities in the local and export markets with the current earnings being around $200 million per year following the Covid-19 and Economic Crisis, Automotive Component Manufacturers are optimistic about growth. 

The President of the Sri Lanka Automotive Component Manufacturers Association (SLACMA) Dimantha Jayawardena said in a press release: “Sri Lankan automotive component manufacturers have gone through the toughest business cycle from 2020 and through the current economic crisis. Most manufacturers have survived. Some are still trying to make the best following the temporary suspension of imported brands, while others are suffering due to low market demand as well as inability to source raw materials.”

In addition to being President of SLACMA, Dimantha Jayawardena is the Chairman of the Automobile Sector Advisory Committee for Automobile Components Manufacturing and Assembly Related Industry of the Ministry of Industries (MoI), and a member of the Industrialisation Commission appointed by the President. He is also a member of the Board of Directors and Advisor to several companies.

Jayawardena said that the MoI was able to help most of the manufacturers during the hardest times by the allocation of the Indian Credit Line to source raw materials. “It was extremely commendable that the Ministry of Industries took an initial step to help most of the manufacturers who were affected by the temporary suspension, by reviewing and lifting the restrictions following justification of the imports to the MoI. In addition, high interest rates have been severely impacting the industry, and many small-scale manufacturers had to wind up operations during the past year.” 

He said that the SLACMA has tried its best to support its members by getting involved in necessary interventions via the Ministry of Industries to safeguard the industry. “As the industry tries to come out of the worst times, SLACMA is now in the process of getting its manufacturers certified by the International Automotive Task Force (IATF) to the 16949 international standard. This endeavour is 50% funded by the Ministry of Industries. SLACMA will also work with financial institutions to obtain their support for small manufacturers to secure loans to upgrade factories and machinery, in order to increase the quality standards and be more competitive in the global supply chains.”

The short-term plan of SLACMA is to work with regional and local counterparts to support JVs and technical collaborations, as it will help the local manufacturers to enter global supply chains much faster, he said. 

He added: “The 10-year plan of the Ministry of Industries, the Export Development Board (EDB) and BOI is to achieve $1 billion through exports from this sector. We are confident that this can be achieved.” 

Source: The Morning – https://www.themorning.lk/articles/04PG24brU3jKOMzyFumS