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BORD OF INVESTMENT OF SRI LANKA
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You are here: Home / Industry Sectors / Rubber
 

The Sri Lankan rubber industry consists of three main sectors namely the plantation industry that grows and harvest latex, the rubber products manufacturing industry and the rubber wood based industry. In 2006 a total of 118,000 ha were under rubber cultivation, which produced a total of 109,153 MT of raw rubber. Rubber products manufacturers in Sri Lanka consumed 62,810 MT of locally grown rubber for value added products such as tires, gloves, mats, automotive parts and foam rubber. This accounts for 57% of the total raw rubber production in Sri Lanka. The raw rubber exports in year 2006 was 46,343 MT (Figure 01).

 
Figure 01 : Raw Rubber Production and Exports in Sri Lanka (1998-2005)
Source : Economic and Social Statistics of Sri Lanka, (2005)
Ministry of Plantation Industries (www.Plantation industries.gov.lk)
 
Presently, the rubber industry contribution to export earnings of the country is about 8%. The rubber exports accounted for US $ 542 mn for the year 2006 out of which 17% were from natural rubber exports whereas the balance is from rubber products exports (Figure 02). The value-added rubber products manufacturing sector has recently emerged as the key driving force in the industrial based development of the economy. The European Union is the major exporter of natural rubber with the export quantity of 11.2 MT in the year 2006 (Figure 03). This is followed by Pakistan with the export quantity of 11.1 MT. The major rubber products exporting countries are EU, USA Japan Canada & India.
 
Figure 02 : Rubber Exports in Sri Lanka (by Sub Sector) – 2006
Source : Export Performance Indicators, EDB, (1997-2006)
 
Figure 03: Country Classification of Natural Rubber Exports- 2006
Source : Annual Report, Central Bank of Sri Lanka, 2006
 
The figure 04 shows the export performance of rubber products sector in Sri Lanka. The rubber products exports in the year 2006 accounted for US $ 450 mn , which is a 14% increase over the previous year.
 
Figure 04 : Export Performance of Rubber Product Sector in Sri Lanka
Source : Export Performance Indicators, EDB, (1997-2006)
 
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