By: Staff Writer
October 07, Colombo (LNW): Sri Lanka’s automotive component manufacturers have faced significant challenges since 2020, grappling with the economic crisis and the toughest business cycles in recent history.
While many manufacturers have managed to survive, some are still navigating the effects of reduced market demand and difficulties in sourcing raw materials, partially mitigated by the temporary suspension of imported brands.
In light of these challenges, the Sri Lanka Automobile Component Manufacturers Association (SLACMA) has expressed optimism about the National People’s Power (NPP) party’s policies aimed at revitalizing the industry.
According to SLACMA President Dimantha Jayawardena, the inclusion of automobile assembly and component manufacturing in the NPP’s policy framework is a positive step for the sector’s growth.
Jayawardena emphasized that the Standard Operating Procedure (SOP) for promoting local industry has been crucial in integrating Sri Lankan manufacturers into global supply chains.
The SOP mandates the use of locally manufactured components, requiring stringent adherence to quality standards set by Original Equipment Manufacturers (OEMs). This initiative has paved the way for local manufacturers to meet international standards and tap into global markets.
The presence of global automobile brands assembling vehicles in Sri Lanka is a testament to the progress made. This initiative is overseen by the Industries Ministry, supported by a Cabinet-appointed committee with representatives from various government bodies to ensure compliance with regulations.
Currently, Sri Lanka exports approximately $800 million worth of automotive components, including $200 million in auto components, $200 million in automobile wire harnesses and electric items, and $400 million in rubber components, tires, and solid tyres.
The Industries Ministry has also laid out a 20-year master plan to enhance the country’s position in electric vehicle (EV) manufacturing, aiming to turn Sri Lanka into a hub for wire harness and electric component production for EVs.
SLACMA’s 60-member manufacturers are optimistic about the industry’s future, particularly with the NPP’s clear focus on developing automobile manufacturing and component production. They are committed to collaborating with stakeholders and policymakers to increase export-oriented revenue through global supply chains.
The government’s long-term vision, supported by the Industries Ministry, the Export Development Board, and the Board of Investment (BOI), is to achieve $3 billion in export revenue from the automotive sector within the next decade.
Jayawardena expressed confidence in meeting this target, highlighting the association’s efforts to certify manufacturers to international standards such as the IATF 16949. This initiative is partly funded by the Ministry of Industries to enhance competitiveness in the global market.
SLACMA’s short-term goals include fostering joint ventures and technical collaborations with regional and local partners to fast-track local manufacturers’ entry into global supply chains.
By securing financial support and upgrading infrastructure, SLACMA aims to strengthen Sri Lanka’s position as a competitive player in the global automotive component industry.
