Sri Lankan tyre market in crisis: Requests to facilitate export manufactures to prioritise local demand

May 7, 2021 at 2:04 PM

The Sri Lankan tyre market is currently facing a crisis due to a shortage of tyres and Passenger Car Radials (PCR) in particular.

According to the Daily FT, the shortage has been faced due the high dependence on imports and as a result of the ban imposed on imports over the last two years.

The import restriction has further resulted in the local production being unable to meet the annual demand of approximately one million.

It has been suggested to source tyres from other local manufacturers whose intended market is the export market as an option to resolve the crisis.

However, this option too leads to obstacles due to regulatory and restrictions.

It has been observed that tyres manufactured for export utilise raw materials that were imported tax-free, as a concession afforded to incentivise local industries.

“We need to facilitate export manufactures so they should be able give priority to local demand. The government has imposed restrictions on these manufacturers to enter local market. Therefore government must take necessary steps in order to these tyre manufacturers can supply the local demand” An industry expert said commenting on the crisis. (NewsWire)