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Light
Engineering Products |
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Introduction
The Foundry Industry is an important feeder industry for the engineering
product sector in that it supplies parts and spares for machinery,
equipment and tools etc. In addition to supply of vital components
of various engineering products to tea & rubber industries, it
also supplies a wide range of directly exportable metal products.
Although mainly catering to the local market it has a high export
potential. The industry at present exports few foundry products. Further
it indirectly contributes to exports by supplying components to industries
such as tea, rubber etc.
The development of the foundry industry is of great importance to
the engineering sector. The Foundry Development & Services Institute
(FDSI) has been established and is owned, run and operated by the
private sector foundry industry in Sri Lanka. The FDSI efforts are
aimed at improving the productivity; quality and the market share
of the foundry sub-sector and upgrading the foundry industry so that
castings to international specifications could be produced.
Although the membership of FDSI is more than 50 companies, at present
there are about 25 companies in operation.
The present structure of the foundry industry is as follows:
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Capacity |
| Large scale |
6 |
<01Tonne & above |
| Medium Scale |
8-10 |
101kg<01Tonne |
| Small Scale |
9-11 |
10kg < 100kg |
The available capacity of annual production is about 100,000 tonnes,
at present the maximum utilization is around 20.000 tonnes. Hence
the industry uses only 20% of its capacity. |
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The engineering
products sector in Sri Lanka consists of over 1000 manufacturing units
which includes small & medium sized manufacturing units and the
export oriented ventures which are located both within and outside
the country's free trade zones.
Studies undertaken in Sri Lanka show that the local light engineering
industry compares well internationally for both its efficiency and
competitiveness. The country exports products such as precision
tools, moulds and electrical enclosures and manufactures high quality
water pumps and agriculture machinery for the local market.
These products could be sub-divided into two main categories.
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Engineering products
for industrial and agricultural use |
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Fasteners, locks, Tower bolts, Hinges,
sprayers and fire Hydrants, Fire Bars, Man hole covers, Sluice
gates, Machinery parts, Marine fittings, Sign Boards, Locomotive
parts, weighing scales, agricultural machinery, rice milling
units, hullers, industrial, Agro water pumps Sawing machine
parts, Refrigerator parts etc. |
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Engineering products for consumer
use |
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Sawing Machines & Ceiling fans,
Pots &pans, locks and handles, Garden equipment, domestic
water pump oil lamps & other Souvenirs,
The foundries that are in operation in Sri Lanka have the production
capabilities of grey iron casting, ductile iron casting, aluminum,
brass and steel castings. |
Investment
There are several investment opportunities in the manufacture of products
such for fans ,room air conditioners, refrigerators ,small engines
and metal furniture. |
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Exports
of Foundry/Engineering Products for Sri Lanka (Value in Rs.Mn.) |
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2000 |
2001 |
2002 |
2003 |
| Iron & steel products |
817.35 |
784.76 |
1368.18 |
1011.3 |
| Copper products |
112.48 |
301.2 |
6380.82 |
11568.68 |
| Lead products |
250.39 |
110.63 |
314.08 |
285.6 |
| Tools & Equipments |
7.69 |
39.52 |
119.29 |
31.17 |
| Others |
72.57 |
99.25 |
79.91 |
356.13 |
| Total |
1885.12 |
1912.42 |
9196.87 |
14145.05 |
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Source: Sri
Lanka Customs |
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Exports
of Light Engineering Products -Value Rs.Mn Major Export Markets (Exclude
Scrap Metals) |
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| Market |
1999 |
2000 |
2001 |
2002 |
2003 |
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14,468
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18,604
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22,210
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29,201 |
38,012 |
India
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58 |
143 |
533 |
7,760 |
14,991 |
Germany
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1,784 |
2,010 |
3,298 |
3,813 |
4,779 |
United Kingdom
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1,004 |
1,923 |
2,092 |
3,103 |
2,903 |
Singapore
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577 |
1,104 |
3,108 |
4,529 |
3,879 |
Japan
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2,497 |
3,013 |
3,005 |
898 |
1,725 |
France
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145 |
262 |
1,548 |
1,433 |
593 |
United Arab Emirates
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105 |
146 |
796 |
888 |
433 |
Hong Kong
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851 |
1,119 |
1,057 |
1,348 |
3,726 |
United States
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1,012 |
1,533 |
1,353 |
1,894 |
1,054 |
Switzerland
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742 |
1,048 |
887 |
625 |
623 |
Sweden
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317 |
307 |
273 |
190 |
224 |
Philippines
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13 |
22 |
23 |
87 |
264 |
Netherlands
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82 |
145 |
134 |
157 |
260 |
Maldives
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503 |
173 |
150 |
309 |
269 |
Indonesia
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23 |
22 |
41 |
118 |
155 |
Bangladesh
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23 |
38 |
136 |
126 |
59 |
Ireland
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73 |
95 |
114 |
108 |
155 |
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Source: Sri
Lanka Customs Returns |
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