Mar 23, 2019

Imported rubber spells doom for the local rubber industry

Due to the tax concessions provided for the import of rubber sap from Malaysia and Cambodia, the local rubber industry has been affected drastically, according to the Lanka Estate Services Association.

A kilo of rubber sheets previously sold at between Rs. 500-600, but due to the import of rubber sap under the tax concessions, a kilo of rubber sheets had dropped to around Rs. 250, according to the Association’s Chairman Chatura Samarasinghe.

He noted that due to this predicament, the state and private rubber estates are finding it difficult to sustain their operations. He noted that previously, rubber sap was only allowed to be imported during the seasons that the local rubber sap is not available.

Due to the steep decline in the price of rubber, the farmers engaged in the rubber industry are also facing dire hardships, Samarasinghe noted.