Business
Motor traders caution govt on sustainable electrification
The Ceylon Motor Traders’ Association (CMTA), the most senior automotive association in South Asia welcomes the government’s view that Electric Vehicles (EVs) represent the future of mobility, not just in Sri Lanka, but around the world. While the benefits of EVs are very clear in terms of reduced emissions and fuel savings, the CMTA cautions that the transition from internal combustion engines (ICE) to EVs – commonly referred to as electrification – should be carried out with proper planning and informed decision making, to preserve the interests of the Government, consumers, and the industry.
Being the only Association, which has access to global EV manufacturers and represents them in Sri Lanka, the CMTA is concerned whether due diligence has been carried out prior to the re-introduction of EVs to Sri Lanka. In this regard, the Association on the advice of global manufacturers has decided to develop a detailed automotive industry roadmap with KPMG, covering among other topics the sustainable introduction of EVs. This roadmap will be presented to the government authorities for expert advisory on the automotive industry.
As per the recommendations of global EV manufacturers, the CMTA has put forward several considerations to policy makers. Firstly, High Voltage (HV) Battery and the power management systems of EVs should be suitable for local climatic conditions as they are highly sensitive and must be adapted by the manufacturer for the specific country/region of use. Further, a minimum manufacturer’s warranty on the HV batteries of at least 5 years for passenger vehicles and 3 years for 2/3 wheelers should be required to protect consumers from crippling expenses and to negate premature foreign exchange outflow for defective batteries and related parts replacements, considering the extremely high costs of these parts. In addition, EV repairers should comply with globally accepted safety standards on infrastructure, including safety equipment, training, and isolation areas for vehicles/HV batteries in a hazardous state (e.g. after an accident).
To promote a sustainable path to electrification, the CMTA urged the government to establish a legal framework regarding end-of-life handling of HV batteries and other components, as if not disposed properly, HV batteries can be extremely hazardous to the environment and groundwater systems, which can also have implications to public health. It also emphasized the need for minimum technical standards of HV battery imports to avoid low quality battery imports and encouraged joint ventures with foreign companies with the technical expertise to set up sophisticated HV battery recycling/rebuilding facilities in the country.
Public infrastructure is also key for a successful mass-scale electrification. Reputed global EV manufacturers all emphasize the necessity for developing a public fast-charging network to give EV users peace of mind and allow them to embark on longer journeys. In terms of training facilities and resources for EV repairs, it is mandatory to enhance the curriculum at technical training institutes to create a pool of certified EV technicians who can cater to future EV repair demands.
Commenting on the timely topic of EVs, the CMTA Chairman, Yasendra Amerasinghe said, “Vehicle electrification if implemented will bode well for a country like Sri Lanka with distances between major towns being within the range of most modern EVs. Electrification is – without a doubt – the future, and we would like to see the authorities taking the necessary steps to create a conducive environment for sustainable electrification, as an improper roll-out can cause harm to consumers and the industry.”
In making a balanced and informed decision on electrification, the CMTA points out that policy makers should be aware that transitioning passenger vehicles to EVs while continuing with fossil fuel commercial vehicles may not have the expected impact on fuel imports as a significant proportion of fuel is consumed by commercial vehicles. The issue of the existing older passenger vehicles in the country would also need to be addressed through a scrapping or re-export policy to have an appreciable impact on the country’s fuel consumption.
Authorities should also be mindful that the import cost of an EV model is 20-30% higher than its ICE equivalent, which is only offset by the reduced fuel consumption and maintenance costs over a few years.
The year 2015 witnessed the introduction of EVs to the Sri Lankan market at extremely low import duties without much forethought and against the recommendations of the CMTA at the time. The result was an influx of grey (used) vehicles, which now are a great burden to around 5,000 EV owners due to battery failures. To date, there is no viable solution for these customers who are forced to sell their vehicles at far below market value, convert them to gasoline engines and use them with illegal registrations or continue to use them with failed batteries with a limited range of around 40-60km. Looking ahead, the CMTA suggests learning from the mistakes of 2015 and considering the recommendations provided by reputed global EV manufacturers for sustainable electrification.
Business
ADB approves $100 million loan to boost skills development and jobs for youth in Sri Lanka
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.
Business
USD 40.84m pipeline to secure aviation fuel supplies to BIA
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.
Business
CSE activity up, turnover weak at Rs. 1.4 billion
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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