Business
Standard operating procedure for local assembly of vehicles and component manufacturing to be launched
The Ministry of Industries spearheaded by . Wimal Weerawansa is soon to launch the standard operating procedure (SOP) for local assembly of vehicles and automotive component manufacturing to encourage world renowned brands to locally assemble vehicles.
Dimantha Jayawardena, president of the Sri Lanka Automotive Component Manufacturers’ Association said that the new SOP has been prepared in keeping with the highest standards around the world. “This SOP has been prepared by the Policy Development Division of the Ministry of Industries in close collaboration with Ministry of Finance, Sri Lanka Customs, Registrar of Motor Vehicles, Sri Lanka Automobile assemblers and Automobile Component Manufacturers. With the launch of the SOP it will become mandatory that vehicle assembly comply to the SOP and increase value addition for locally manufactured vehicles.
The SOP includes guidelines and standards for registration at the Department of Motor Traffic, BOI, Sri Lanka Customs and the Ministry of Industries and for the local assembly of vehicles.
It has also specified the necessary regulations for standardization of the assembling and manufacturing process, the automobiles and components, and the establishment of the assessment facilities. It also has guidelines for the exportation of assembled and manufactured vehicles and the recommended exemptions of excise duties.
Jayawardena also said, “The SOP clearly states that it is vital that the sector should be provided with the opportunity to expand itself in the domestic market at the first stage and in order to achieve this objective, there should be a substantial level of investment in the domestically value-added automobile manufacturing/assembly industry, which could create the demand for locally manufactured components increasing their quality and to achieve internationally renowned standards.
“This SOP includes all regulations, procedures and requirements related to different aspects of the industry, from the registration of an industry to the safety and quality standards applicable to the same and is subject to review and revision every five years. Prospective local assemblers should be given the flexibility during the first two years to invest and start operations and adhere to the SOP guidelines within a 2-year time-frame.”
We expect more than 20,000 direct jobs and 25,000 indirect jobs to be created within the next 2 – 3 years. Currently SLACMA is working with the Ministry of Skills and Development together with NAITA and German Tech to absorb these students to the local assemblies.
The advantage of local manufacturing of automobiles allow technology transformation and technical training under some of the world’s best manufacturing standards such as Just In Time, 5S, KAISEN, LEAN Manufacturing, IATF 16949 and Six SIGMA standards. This will help our students to apply these manufacturing methods in other manufacturing industries.
“I must commend His Excellency the President for his vision of adding value to Sri Lankan products and services and in the process greatly enhancing the skill level of the local workforce.” He added.
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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