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Government to support local automotive assembly with 30% locally made automobile components

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The Sri Lanka Automotive Component Manufacturers’ Association recently announced that the Sri Lanka government is actively seeking to promote automotive assembly with locally secured components, in order to boost the industry and create better job opportunities. The assembly of 100 vehicles will create more than 250 direct jobs and 100 indirect jobs. If 1000 vehicles are assembled, an average of 2500 direct jobs and 1000 indirect jobs will be created ensuring a solid and confident business environment for the manufacturers.

With the local vehicle assembly, component manufacturers will have a strong market to sell their products as well as improve product quality. It will also safeguard the interests of local automotive component manufacturers.

Sharing his views on the progress of this decision, Dimantha Jayawardena, president of the Sri Lanka Automotive Component Manufacturers’ Association said, “Automotive components manufactured by our members are of the highest quality and conform to international standards. They are fast gaining recognition as OEM products by leading automotive manufacturers. Government has offered this industry policy as an incentive to promote the use of at least thirty-percent of the original components from Sri Lankan manufacturers. This policy is monitored by the Ministry of Industry and Supply Chain under minister Wimal Weerawansa, along with the Ministry of Finance. SLACMA is also grateful to Dilum Amunugama, MP, the State Minister of Vehicle Regulation, Passenger Transport Services, Railway Carriages and Automobile Industries for his active support in driving this policy forward.”

The Memorandum of Understanding (MoU) signed between the Sri Lanka Automotive Component Manufacturers’ Association and the Automotive Component Manufacturers’ Association of India (ACMA) back in 2017 has supported the SLACMA in various ways including the possibilities to enhance technical collaborations through joint ventures, receive support and guidance in policy matters, obtain assistance in finding OEM partners and knowledge sharing between both associations. Sri Lankan Component Manufacturing has entered the Global Supply Chain by the technical collaboration between Ideal Auto Seating and MSKH India, a joint venture of Magna Worldwide – the largest automotive component manufacturer in the world. Magna Worldwide has its presence in 28 countries with 169,000 employees and 338 manufacturing plants.

SLACMA has submitted a 10-year master-plan to the Finance Ministry as a crucial step to take the Local assembly industry and component supply to the next level, as they seek quality certification from their regional counterparts to boost growth. Currently, the Ministry of Finance and Ministry of Industry and Supply Chain is in the process of obtaining Cabinet approval for the Standard Operating Procedure for local assembly and local auto-component manufacturing.

Automotive components presently manufactured in Sri Lanka

1) Tyres

2) Batteries

3) Rubber Components including Bushes

4) Exhausts Systems

5) Seats and Seating Components

6) Radiators

7) Bumpers and Body Interior Panels

8) Center Consoles

9) Suspension Components

10) Truck Trailers

11) Clutch Systems

12) HVAC Systems

13) Complete Dashboard Systems

14) Steering Racks Including Conversion Kits

15) Cables

16) Wire Harness

17) Oil Filters

18) Air Filters

19) Head Light Manufacturers.

20) Truck Bodies / Bowser / Tractor Trailers – More 300 Manufacturers.

(SLACMA)



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ADB approves $100 million loan to boost skills development and jobs for youth in Sri Lanka

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The Asian Development Bank (ADB) has approved a $100 million results-based loan to help Sri Lanka transform its technical and vocational education and training (TVET) system, equip more young people with industry-relevant skills, and strengthen the country’s competitiveness and inclusive growth.

The Skills Development System Transformation Program will support the Government of Sri Lanka’s efforts in improving the quality and relevance of skills training, strengthening links between training providers and industries, and expanding employment opportunities for youth. The program will increase women’s employment opportunities in nontraditional jobs in fields including automotive technology, engineering, information and communications technology, construction, and renewable energy.

“A skilled workforce is essential to Sri Lanka’s long-term economic transformation and competitiveness,” said ADB Country Director for Sri Lanka Shannon Cowlin. “This program will help create stronger pathways from education to employment by making training more responsive to industry needs, expanding opportunities for young people and women, and ensuring that graduates have the skills required by a modern and evolving economy.”

Though Sri Lanka’s economy is recovering, it faces skills shortages in priority sectors, high youth unemployment, and low female labor force participation. Many employers report difficulty finding workers with the skills needed in a changing economy.

Aligned with the Government of Sri Lanka’s Technical and Vocational Education and Training Sector Strategic Framework 2026–2035, the nationwide program will be implemented from 2027 to 2031 and is expected to directly benefit more than 100,000 young people through improved access to quality, employment-oriented training.

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USD 40.84m pipeline to secure aviation fuel supplies to BIA

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By Ifham Nizam

The government has cleared a USD 40.84 million and Rs. 8,548.75 million contract to build a dedicated aviation fuel pipeline from Muthurajawela to Bandaranaike International Airport (BIA), alongside a massive new fuel storage facility with a capacity of 92,000 cubic metres.

Energy Minister Anura Karunatilaka said the project represented a major investment in strengthening the infrastructure underpinning Sri Lanka’s aviation fuel supply and ensuring more reliable fuel availability at the country’s main international airport.

‘This project will provide the infrastructure required to strengthen the reliability and continuity of aviation fuel supplies to Bandaranaike International Airport, Karunatilaka said.

The contract has been awarded to China Petroleum Pipeline Engineering Company Limited, following an international competitive procurement process in which three bids were received.

The project will see a new aviation fuel storage tank complex constructed at Muthurajawela, together with the associated infrastructure required for handling and transferring aviation fuel.

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CSE activity up, turnover weak at Rs. 1.4 billion

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By Hiran H Senewiratne 

Trading activity on the Colombo Stock Exchange (CSE) gathered pace yesterday as global fuel prices began to show signs of easing, according to market analysts.In this context, both indices moved upwards. All Share Price Index up by 67.97 points while S and P SL20 up by 8.30 points.

Turnover stood at Rs 1.4 billion with seven crossings. Those crossings were reported in Sampath Bank 1.7 million shares crossed to the tune of Rs 238 million and its share price traded at Rs 140, Access Engineering two million shares crossed to the tune of Rs 159 million and its share price traded at Rs 79.50, LOLC one million shares crossed to the tune of Rs 129 million and its share price traded at Rs 129, HNB 100,000 shares crossed to the tune of Rs 38.4 million and its share price traded at Rs 384, JKH 1.9 million shares crossed to the tune of Rs 35 million and its share price traded at Rs 18.60, Hayleys 100,000 shares crossed to the tune of Rs 22.50 million and its share price traded at Rs 225 and Richard Pieris 847,000 shares crossed to the tune of Rs 22 million and its share price traded at Rs 25.50.

In the retail market top seven companies that have mainly contributed to the turnover were Sampath Bank Rs 114 million (813,000 shares traded), JKH Rs 100 million (5.3 million shares traded) LB Finance Rs 49 million (325,000 shares traded), HNB Finance Rs 30 million (27 million shares traded), HNB Rs 27 million (70000 shares traded), NTB Rs 25 million (82000 shares traded ) and Lanka IOC Rs 21 million (666,000 shares traded). During the day 65 million shares volumes changed hands in 10433 transactions.

The Banking and manufacturing sector counters performed well.  In the banking sector Sampath Bank let the market while manufacturing sector especially JKH also significantly performed well. With the fuel revision Land IOC also a significant stock at the floor.

Meanwhile, First Capital Treasuries said that Ramesh Schaffter resigned as a Non-Independent Non-Executive Director with effect from October 1, to facilitate the restructuring of the company’s board.

Yesterday the Central Bank announced the US Dollar rate as against rupee. The rupee was quoted flat at Rs 330.65/80 to the US dollar in the spot market , while bond yields dropped, dealers said.

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