Sri Lanka's Increases Rubber Production by 6pct

19th July 2010, www.dailynews.lk, By Gayan Kanchana

Sri Lanka’s annual rubber production has increased by six percent to reach 137 million kilograms. It is expected to grow further with new rubber plantations this year. The annual production increased by six percent to reach 137 million kilograms, and is expected to increase as new plantation bearing comes in the Moneragala district.

A further two thousand hectares are expected to come into bearing this year, Colombo Rubber Trader’s Association (CRTA) Chairman M.S. Rahim said.

The Rubber Development Department will shortly be holding a census of rubber land in the country.

Rahim speaking at the 91st Annual General Meeting (AGM) of the CRTA which was held in Colombo last week said: “Last year due to the worldwide recession most of the world economies collapsed. But thanks to the rigid financial controls, several Asian

countries were able to manage in economies well”.

China was the first to lead extensive development in their country and soon followed by India. With the two larger populations at work, all raw material rebounded. With such a rapid development, the demand for rubber for automobile tyres, highways and building construction increased.

From January 2009 local rubber prices moved up steadily and reached level of Rs 310 for crepe 1X and Rs 318.50 for RSSI by the end of the year. This was the best of times for the growers as it was the cropping month and was a bonus for the plantation companies who had to bear an increase in labour wages in 2009.

But the good time began to end for our rubber growers after March 2010 due to bad weather and excessive holidays. Growers have not been able to produce estimated crops and enjoy the true benefit of the higher than ever prices fetched at the auction.

“Rubber products are an important component of the manufacturing sector because its potential is continuing with the demand of world natural rubber product. We are among the ten ranking rubber exporters in the world,” Rahim said.

Chief Guest at the AGM Bank of Ceylon Chairman Dr. Gamini Wickremasingha said, ‘The GDP posted a growth in the country by 7.1 percent for the first quarter of 2010 compared to that of the corresponding period of the last year. The rupee went up by 2.6 percent against the US dollar.

Exports have recorded a growth by 7.1 percent for the first three months of 2010 compared with the same period of the last year with higher earnings from the industrial exports including rubber products.