LIST OF MEMBERS - crtasl.org · The Colombo Rubber Traders’ Association Annual Report & Accounts 2015/2016 3 REPRESENTATION ON OTHER BODIES THE CEYLON CHAMBER OF COMMERCE MrMr

The Colombo Rubber Traders’ Association Annual Report & Accounts 2015/2016

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COMMITTEE – 2015/2016

CHAIRMAN Mr.M.S. Rahim- A.M Rahim & Co. Ltd

VICE CHAIRMAN

Mr. S.Poholiyadde- Kegalle Plantations PLC

Buyer Representatives

Almar Trading Company

A.M Rahim & Co. Ltd C.W. Mackie PLC

Eastern Merchants PLC

Richard Peiris & Company Ltd Shums & Company Ltd

Seller Representatives

Pussellawa Plantations Ltd

Kelani Valley Plantations PLC Kegalle Plantations PLC

Balangoda Plantations PLC Kotagala Plantations PLC

Kahawatte Plantations PLC

BROKER REPRESENTATIVE

John Keells PLC

BY INVITATION The Planters’ Association of Ceylon

The Colombo Rubber Buyers’ Association Mr. N.Silva – C.W.Mackie PLC (From April,2015 to December 2015)

Mr. Mahesh Kapukotuwe - Almar Trading Co. (Pvt) Ltd Non - CBA Broker – J. D. and Sons (Pvt) Ltd

SECRETARIAT

The Ceylon Chamber of Commerce


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SUB COMMITTEES - 2015/2016

MEMBERSHIP & DISCIPLINE

Mr. W.T. Ellawala (Convener)

Mr. H. de Silva Mr. M.S. Rahim Mr. R.C. Peiris Mr. L. Perera

Mr. M Dias

WAREHOUSE

Mr. A. Edirisinghe (Convener)

Mr. A.Perera Mr. K.M.N.P. Bandara

Mr. R. Fernando Mr. M Dias

Mr. S.Junaid

BY LAWS & CONSTITUTION

Mr. S. Poholiyadde (Convener)

Mr. A. Edirisinghe Mr. L. Obeyesekere

Mr.Amanda Weerasinghe Mr. H. de Silva

Mr. M.S. Rahim Mr. Ranil Fernando

Mr. V Ruberu

FREIGHT & SHIPPING

Mr. A. Edirisinghe(Convener)

Mr. T.Shums Mr.K.M.N.P. Bandara

Mr. H. de Silva

REGULATORY REFORMS

Mr. W.T. Ellawala (Convener)

Mr. M.S. Rahim Mr. R Fernando

Mr. S. Poholiyadde Mr. M Dias


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REPRESENTATION ON OTHER BODIES

THE CEYLON CHAMBER OF COMMERCE

Mr. M.S. Rahim and Mr. S. Poholiyadde were nominated to serve on the Committee of the Ceylon Chamber of Commerce for the year 2015, as the CRTA representative and Alternate, respectively.

SRI LANKA SHIPPERS’ COUNCIL

Mr. N. Silva of C.W. Mackie was nominated to represent CRTA in the year 2015/16. With the retirement of Mr. N. Silva Mr. Mahesh Kapukotuwe of Almar Trading Co. (Pvt) Ltd was appointed to serve as CRTA representative on the SLSC.

EXPORTERS’ ASSOCIATION OF SRI LANKA

Mr. H. de Silva of Eastern Merchants PLC and Mr. Talal Shums of Shums & Company Ltd were nominated to represent the Association on the EASL Committee for the year 2015/2016.

SRI LANKA SOCIETY FOR RUBBER INDUSTRY

Mr. Maasiri Dias was nominated to represent the CRTA on the Board of the Sri Lanka Society for Rubber Industry for the year 2015/2016.


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MEMBERS

Buyer Members ALMAR TRADING CO. (PTE) LTD 143/17, Sri Wickrama Mawatha, Colombo 15 Tel : 5340440 Fax : 5344100 ALI BROTHERS (PVT) LTD. 228, Layards Broadway, Colombo 14 Tel : 2330207 – 8 Fax : 2541104 ASSOCIATED MOTORWAYS LTD 185, Union Place, Colombo 2 Tel : 2309309 Fax : 2323781 ASSOCIATED SPECIALTY RUBBER (PVT) LTD Yatideriya Rubber Factory Undungoda. 71200 Tel : 035-2278812 Fax : 035-2278811 A. M. RAHIM & CO. LIMITED 64, W. A. D. Ramanayake Mawatha., Colombo 2 Tel : 2320421/2333625/2445856 Fax : 2448345 AROMA NATURAL RUBBER [PVT] LTD Keraminiya Watta, Mawanella. Tel : 035-2248050 Fax : 035-2246648

CEAT- KELANI INTERNATIONAL TYRES Co (PVT) LTD P. O. BOX 53, Nungamugoda, Kelaniya. Tel : 2911305/2911241/2911269 Fax : 4817721/2911453 CEYLON TRADING CO. LTD 36, D. R. Wijewardena Mawatha, Colombo 10 Tel : 2327336/9 /2328904/2325665 Fax : 2449586


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C. W. MACKIE PLC 36, D. R. Wijewardena Mawatha, Colombo 10 Tel : 2440229/2423554-63 Fax : 2440228 EASTERN MERCHANTS PLC 341, Union Place, Colombo 2 Tel : 2325736/2328406 Fax : 2448474 FAGA TYRES (PVT) LTD No. 02, Udugalla Estate, Paragasthota, Bandaragama Tel : 077 3873 601/ 034 4298 561/ 0 11 2620 603 Fax : 011 2620 603 GLENROSS RUBBER COMPANY B/2, Elvitigala Flats, Elvitigala Mw., Colombo 8 Tel : 2699607 Fax : 2866765 GLOBAL RUBBER INDUSTRIES (PVT) LTD 28, Joseph’s Lane Colombo 4 Tel : 2598831 Fax : 2551091 HAMEED BROTHERS COLOMBO (PVT) LTD 377, Grandpass Road, Colombo 14 Tel : 2320832/2324447/2345934-5 Fax : 2335617 JAFFERJEE BROTHERS 150, St. Joseph’s Street, P O Box 1180, Grandpass Colombo 14 Tel : 2432051/ 2434041 Fax : 2446085 K. R. V. ENTERPRISES 33, Kelani Ganga Mill Road, COLOMBO 15 Tel : 4936826 Fax : 2433499

LANKA PRODUCE TRADERS 636/B/2, Malwatta, Malwana Tel : 0112570076/0777488829


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LE-FERNE LABORATORIES (PVT) LTD. 255/3, Highlevel Road, Colombo 5 Tel : 4203328/4203329 Fax : 2813862 LOADSTAR (PVT) LTD Regents Court, 218, Minuwangoda Road Ekala, Ja-Ela Tel : 4837659 Fax : 2232828 LALAN RUBBER (PVT) LTD 18, Nawala Road, Nugegoda. Tel : 4311200/4311241 Fax : 2820579/2311222 MALWATTE TRADERS 22, Babapulle Place, Off Grand Pass Road, Colombo 14 Tel : 2439451 MICROCELLS LTD Koskanatte Road, Mampe, Piliyandala Tel : 2708908 Fax : 2708917 OREX TRADING COMPANY No. 107, Biyagama Road, Kelaniya Tel : 2911566/2911236 Fax : 2911566 P. R. & SONS No. 17, Dawalasinghharama Mawatha Colombo 15 Tel : 2546168 RICHARD PEIRIS & COMPANY PLC 310, High Level Road Nawinna, Maharagama Tel : 4304028/2852644 Fax : 2856787 SAMSON COMPOUNDS (PVT) LTD D Samson Rajapakse Mw, Bataduwa, Galle SHUMS & CO LTD 33A, Queens Road, Colombo 3 Tel : 2580027/2580170/2588470 Fax : 2503619/2503440


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Seller Members AGALAWATTE PLANTATIONS PLC 10, Gnanartha Pradeepa Mawatha, Colombo 8 Tel : 2679598-9/2678390 Fax : 2694833 BALANGODA PLANTATIONS PLC P.O.Box No. 6, Palmgarden Ratnapura Tel: : 045 2231445/7 Fax : 045 2223598 ELLAWALA RUBBER (PVT) LTD 14, Carlwil Place, Colombo 03. Tel : 2575756 Fax : 2573098 ELPITIYA PLANTATIONS PLC 73/3, Ward Place, Colombo 07 Tel : 5335572-74 Fax : 5335573 HAPUGASTENNE PLANTATIONS PLC 186, Vauxhall Street Colombo 2 Tel : 045 2222717/ 2222319 Fax : 045 2222717 HORANA PLANTATIONS PLC 7/1, Gower St, Colombo 05 Tel : 5400700 - 87 Fax : 5400730

KAHAWATTE PLANTATIONS PLC 52, Maligawatte Road, Colombo 10 Tel : 4723937 Fax : 4722495 KEGALLE PLANTATIONS PLC 310, High Level Road, Nawinna, Maharagama. Tel : 4310823 / 4310799 Fax : 4310799 KELANI VALLEY PLANTATIONS PLC 400, Deans Road, Colombo 10 Tel : 2686274-5/2627700 Fax : 2694216


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KOTAGALA PLANTATIONS PLC 53 1/1, Sir Baron Jayathileke Mawatha Colombo 1 Tel : 2381508-10 Fax : 2381513 MALWATTE VALLEY PLANTATIONS PLC 280, Dam Street, Colombo 12 Tel: 5388800 Fax: 2543937 NAMUNUKULA PLANTATIONS PLC 310, High Level Road Nawinna, Maharagama. Tel : 4310801, 4310500 Fax : 4306726 PUSSELLAWA PLANTATIONS LTD. No. 168, Negambo Road Peliyagoda Tel : 7990000 / 7990007 Fax : 7990063 WATAWALA PLANTATIONS PLC No. 60, Dharmapala Mawatha, Colombo 03 Tel :4702400 Fax :4716365


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Broker Members

COMMODITY CONSULARS (PVT) LTD 49/4, Sir Chiththampalam A Gardiner Mawatha, Colombo 2 Tel : 0777 700 999 Fax : 5665429 FORBES & WALKER COMMODITY BROKERS (PVT) LTD 46/38, Navam Mawatha, Colombo 2 Tel : 2433720/43 Fax : 2437147 H. W. J. DIAS & BROS (PVT) LTD. 40/5, Dharamapala Place, Rajagiriya. Tel : 0716912162 J. D. & SONS (PRIVATE) LTD. 64, W.A.D Ramanayake Mw, Colombo 02 Tel : 2331739/ 2331749 Fax :2331729 JOHN KEELLS PLC 186, Vauxhall Street, Colombo 2. Tel : 2306551 Fax : 2326121 LANKA COMMODITY BROKERS LTD No. 97 Ananda Rajakaruna Mawatha Colombo 10 Tel : 5377080-3 Fax : 5377090 M. Z. M. MOHIDEEN & SONS 16/4-1/1, Waidya Road, Dehiwela Tel : 0777-316415 & 0777-359259 Fax : 2719802 RANSRI ENTERPRISES (PVT) LTD. 199/96, Obeysekera Crescent, Rajagiriya Road, Rajagiriya. Tel : 5653261 Fax : 4335061 SIYAKA PRODUCE BROKERS (PVT) LTD. 120/15, Vidya Mawatha, Colombo 07 Tel : 4939438 Fax : 2678145


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AN OVERVIEW OF THE INDUSTRY

NATURAL RUBBER PRODUCTION

Total rubber production declined by 9.94 percent to 88.6 Million Kgs during the year 2015 compared to the year 2014. In particular, smallholders slowed their tapping operations in response to lower rubber prices. Furthermore, the unfavorable weather conditions that prevailed during the second and the third quarters of the year along with the high cost of production, poor management of the fields and over aged trees contributed to the decline in

production. Source: Central Bank of Sri Lanka

During 2015, sheet rubber production declined by 4.14 percent to 44.4 Million Kgs and crepe rubber declined by 4.16 percent to 11.1 Million Kgs.

TABLE 1

SRI LANKAN RUBBER PRODUCTION 2011 - 2015 (Mn. Kgs.)

CATEGORY TOTAL

2011 2012 2013

2014 2015 % SHARE OF

TOTAL 2015

Sheet Rubber 60.69 59.24 62.8 48.54 44.4 50.1

Crepe Rubber 64.64 39.73 20.19 15.26 11.1 12.5

TSR 7.98 8.67 9.57 7.62 7.6 8.6

Others 24.87 44.4 37.86 27.15 25.5 28.8

Total 158.19 152.04 130.42 98.54 88.6 100%

Source: Rubber Development Department

Having accounted for the major share of the country’s total production in 2015, Sheet Rubber increased from 49.25 percent in 2014 to 50.11 percent in 2015. Crepe Rubber declined 15.48 percent in 2014 in to 12.5 percent in 2015, whilst “Others”, comprising mainly centrifuged latex, maintained its share at around 28.78 percent of the total production in 2015.


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TABLE 2

NATURAL RUBBER PRODUCTION 2009-2015

(Mn Kgs)

Year

Sheet

Rubber

Sole Crepe

Scrap Crepe

Latex Crepe

TSR Latex & Other

Total

2009 50.51 4.99 3.16 28.00 10.93 27.39 124.98

2010 59.24 6.70 1.84 52.50 8.34 24.34 152.96

2011 60.70 3.48 1.33 59.93 7.98 24.87 158.19

2012 59.24 1.90 1.28 36.55 8.67 24.40 152.04

2013 62.80 2.38 2.44 15.37 9.57 37.86 130.42

2014 48.54 2.41 1.02 11.83 7.67 27.15 98.62

2015 44.4 1.9 0.9 8.3 7.6 25.5 88.6


COST OF PRODUCTION

The current Plantation Workers’ Collective Agreement, which expired with effect from 31 March 2015 is under discussion and it has taken a considerable time unlike the previous agreement of 2013 which was negotiated and formalized following comparatively brief deliberations. The RPCs have been consistent in their stand that while they are not opposed to a wage increase, they are unwilling to give such an increase in the Attendance Based Wage Model that is currently in place. Instead they have proposed a Wage Model that would take in to consideration the Worker Productivity through the improvement of which the companies will have the capacity to pay the increase. The inability of the companies to grant a wage increase under the traditional Attendance Based Wage Model and the Unions demand for the same has delayed the conclusion of the finalization of the wage negotiations for over 1 year. The unprecedented price drop has had a very significant impact on the viability of the Rubber Sector forcing the Rubber plantations to incur massive losses.

The Rubber cost of production has been far above the price they receive for their products at the auctions and the inclement weather and the withdrawal of fertilizer subsidy hitherto granted by the government has further compounded the situation and increased the cost of production even further. The inconsistent and irrational policy related to banning of commonly used but necessary weedicides in the plantations have further complicated the already tenuous situation regarding the high cost structure in the plantation sector.

Source: Planter’s Association


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DOMESTIC CONSUMPTION

Domestic rubber consumption also declined to 73.2 thousand tons from 85.63 thousand tons during the year 2015 reflecting the reduction in industrial production partly due to falling export demands as well as the lack of availability of quality latex rubber.

TABLE 3

DOMESTIC CONSUMPTION OF NATURAL RUBBER 2011-2015

(IN THOUSAND TONS)

2011

2012 2013 2014 2015

Total 111.72 110.03 107.25 85.63 73.2


CULTIVATION

At present, rubber cultivation has expanded to an extent of 133,668 hectares of which 85,083 hectares (63.4%) are cultivated by the Rubber small holding sector. Further, an extent of 48,585 hectares (37%) is managed under the corporate sector. 111,200 hectares of the total extent of lands are mature (tapping) rubber lands and 28,800 hectares are immature rubber lands. The extent of land under Rubber cultivation is expected to increase as the Rubber cultivation is extended to non-traditional growing areas such as Ampara and Vavuniya Districts. The total extent was expected to increase to 148,000 hectares in 2015. However, as a result of depressed prices it is seen that many Small holders are moving away from Rubber cultivation.

The Rubber small holders are distributed in 19 Districts of the country and their contribution to the national rubber production is approximately 77%. The interest of the rubber small holders in the cultivation is maintained mainly due to the fertilizer subsidy granted continuously to the rubber small holders under the National Fertilizer Subsidy Programme and the increased rubber re-planting subsidy.

The corporate sector cultivates approximately 48,585 hectares which is 37% of the total extent of cultivated rubber lands. They contribute to 23% of the National production. The Corporate sector land is distributed in 12 districts. This sector is significant to the sustainability of the local rubber industry due to the production capabilities where raw rubber is converted to finished products and their intervention in the purchase of latex from the rubber small holders. The national fertilizer subsidy granted continuously to the corporate sector from May 2011 has been withdrawn in 2015 by the government and this has impacted on the Rubber production.

Source: Planter’s Association

EXPORTS

Earnings from rubber exports, which declined continuously from 2012, weakened further in 2015, reflecting the impact of continuous reduction in global rubber prices, led by lower global demand .Consequently, export earnings from rubber declined by 42.3 US dollars 26


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million in 2015, led by the reduction in both export volumes and prices. Along with the 36.4 per cent decline in export volume, the average export price of rubber also declined markedly, from US dollars 2.78 per kilogram in 2014, to US dollars 2.52 per kilogram in 2015.

Source: Central Bank of Sri Lanka

TABLE 4

EXPORTS OF RUBBER – 2011 - 2015 (IN THOUSAND TONS)

Year

Sheet Rubber

Sole Crepe

Scrap Crepe

Latex Crepe

TSR

Latex & Other

Total

2011 13.56 2.47 - 20.90 3.66 2.01 42.61

2012 11.06 1.49 - 17.65 4.58 2.61 37.38

2013 4.57 2.02 0.02 13.17 2.4 1.41 23.59

2014 1.97 2.30 0.02 9.86 0.9 1.25 16.31

2015 0.9 1.8 0.01 6.9 0.4 0.3 10.4


The Export Prices of Rubber in 2011- 2015 are shown in Table 5.

TABLE 5

RUBBER EXPORTS VALUE 2011-2015 (Rs. / million )

YEAR RSS CREPE OTHER TOTAL

2011 6,936 12,844 3,032 22,811

2012 4,816 8,106 2,803 15,726

2013 1,743 6,095 1,356 9,194

2014 587 4,553 776 5,916

2015(a) 217 3,064 268 3,548


(a) Provisional

Total Exports Value recorded an overall decline of Rs. 2368 Million in 2015 compared with 2014. During this period, the export value of RSS and crepe declined by Rs.370 million and Rs.1489 million, respectively.


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TABLE 6

EXPORTS OF NATURAL RUBBER FROM SRI LANKA FOR 2015 - (Kgs)

2015

CREPE RUBBER

Sole Crepe

Vietnam 1,022,517

South Africa 225,162

Hong Kong 301,482

Bangladesh 27,300

USA 6,332

Other 264,178

Total 1,846,971

Latex Crepe

Malaysia 392,000

Japan 1,603,600

Italy 622,800

Germany 679,000

Other 3,591,168

Total 6,888,568

Scrap Crepe

Malaysia 12,500

France -

Total 12,500

SHEET RUBBER

RSS

India -

Pakistan 10,005

Germany 322,560

U.S.A -

Other 570,866.1

Total 903431.1

LATEX & OTHER 304,975

TSR 416,777

GRAND TOTAL 10,373,221



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NATURAL RUBBER PRICES

The Colombo Market Prices of Rubber in 2011- 2015 are shown in Table 7.

TABLE 7

COLOMBO MARKET PRICES 2011-2015

(Rs./Kgs)

YEAR

RSS

LATEX CREPE

SCRAP CREPE

NO. 1 X BR

NO. 1 NO.2 IX NO. 1

2011 508.80 505.76 574.93 566.60 462.24

2012 416.47 409.56 410.84 405.00 376.57

2013 376.90 369.21 397.28 389.69 309.23

2014 286.05 280.14 310.00 302.20 213.27

2015(a) 248.17 243 301.48 296.30 213.67

(a) Provisional Source: Central Bank of Sri Lanka

A sharp drop in prices of natural rubber was observed in both domestic and overseas markets also continued their declining trend during 2015. At the Colombo Rubber Auction, the average price of Ribbed Smoked Sheet 1 (RSS1) declined by 13.2% to Rs. 248.17 per kg and latex crepe 1X declined by 2.7 percent to Rs. 301.48 per kg. The continuous decline in natural rubber prices caused smallholders in major producing countries to shift towards other agriculture activities leading to a reduction in global production. The average prices of natural rubber per metric ton in the international market, which is influenced by global economic conditions and petroleum prices.


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TABLE 8

STATISTICAL OVERVIEW OF THE RUBBER INDUSTRY

2013- 2015

ITEM UNIT 2013 2014 (a) 2015(b)

Production Kg mn 130.4 98.6 88.6

Total extent Hectares ‘000 132 134 135

Area under tapping Hectares ‘000 107 111 116

Yield kg./ hectare 1,219 889 950

Cost of Production (g) Rs./kg. 150 160 170

Colombo Auction (RSS1) Rs./kg. 376.9 285.76 248.17

Export (fob) Rs./kg. 389.81 362.96 342.03

Replanting (g) Hectares 1,782 1,475 621

New planting (g) Hectares 1,574 1,304 769


(a) Revised (b) Provisional (g) Extents Covered by Cultivation assistance schemes of the Rubber Development Department

GOVERNMENT INTERVENTION IN RUBBER CULTIVATION

The development strategy of the rubber sector largely concentrated on the expansion of rubber cultivation to nontraditional areas while improving productivity through promoting good agricultural practices. The subsidy scheme for rubber replanting (Rs. 175,000 per hectare) and new planting (Rs. 150,000 per hectare) continued in 2015 as well. Accordingly, around Rs. 405 million and Rs. 190 million were disbursed for replanting and new planting activities, respectively, during the year. The new planting in traditional and nontraditional areas recorded around 219 hectares and 172 hectares, respectively. The government has undertaken steps to pay the difference between the monthly average price of RSS rubber in the Colombo Rubber Auction and the guaranteed purchase price of Rs. 350 per kg to smallholders since March 2015, with the intention of keeping the market price at competitive equilibrium level and thereby providing the remunerative price for smallholders. Under this scheme, around Rs. 1,409 million have been disbursed as at August 2015. Further, the Rubber Research Institute (RRI) implemented several policy measures to support the rubber sector amidst declining rubber prices in the global market. Accordingly, steps were taken to popularize newly developed technologies namely, improved tapping knife, power mat and single day drying system among beneficiaries while popularizing new high yielding clones in the smallholder sector. Measures were also taken to introduce slow release of fertilizer for rubber nurseries to overcome problems associated with conventional practices while continuously inspecting quality planting materials for rubber growers. Further, measures were taken to develop technologies and identify suitable lands to expand rubber cultivation in the Eastern and Northern areas of the country. It is expected that the expansion of rubber cultivation to


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nontraditional areas would help to attain production targets of rubber over the medium term. Source: Central Bank of Sri Lanka In order to encourage the domestic value addition of natural rubber produced in Sri Lanka a CESS of Rs. 15.00 was levied per a Kilogram on exported raw rubber. About 80% of rubber is consumed by domestic industrialists and about 20% is exported. With the reduction of rubber in the world market Sri Lankan price has also reduced simultaneously by falling planters including small rubber estate owners who have faced on difficult situations and it has been forecasted that the current prices will remain till 2020. In, to offer relief to the rubber planters by increasing the rubber price through making a competition between domestic rubber good producers and raw rubber exporters, the proposal made by Hon. Navin Dissanayake, Minister of Plantation Industries, to reduce the CESS levied on raw rubber exportation from Rs. 15/- per a kilo to Rs. 4/- per kilo, was approved by the Cabinet, Under Extraordinary Gazette Notification No. 1941/32dated 20.11.2015 issued under the Section 14(I) of this act, shall be payable at the rate specified in the corresponding entry in column IV of the schedule hereto, with effect from 15th June 2016.

OUTLOOK & MARKET TRENDS

OUTLOOK

The continued Decline in natural Rubber production for the last six years has been a major

concern for all concerned in the Industry. The worst affected are the Small holders as their

production drops annually.

What has caused the decline Is the fact that most the plantations in the 19 districts of the

country totaling to 79,395 Hectares has not been replanted regularly in the last 5 years,

although they have received fertilizer subsidy continuously under the National Fertilizer

subsidy program and the increased rubber planting subsidy.

As reported last year the rubber trees in small holdings are now over 35 years Old and their

yields will drop further if action is not taken to replant these areas.


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MARKET TRENDS

The decline in Natural Rubber production has been a key concern for the local Manufacturers

of Automotive Tyres and other rubber products, who export and Manufacture for the local

market. They will have to continue to import rubber to maintain their production levels.

Prices for all rubber will remain at current levels as drop in oil prices makes synthetic rubber

cheaper making it gloomy for all producers.

200.00

210.00

220.00

230.00

240.00

250.00

260.00

270.00

280.00

290.00

300.00

310.00

320.00

330.00

340.00

350.00

360.00

1/1/

159/

1/15

17/

1/15

25/

1/15

2/2/

1510

/2/

1518

/2/

1526

/2/

156/

3/15

14/

3/15

22/

3/15

30/

3/15

7/4/

1515

/4/

1523

/4/

151/

5/15

9/5/

1517

/5/

1525

/5/

152/

6/15

10/

6/15

18/

6/15

26/

6/15

4/7/

1512

/7/

1520

/7/

1528

/7/

155/

8/15

13/

8/15

21/

8/15

29/

8/15

6/9/

1514

/9/

1522

/9/

1530

/9/

158/

10/

1516

/10

/1

524

/10

/1

51/

11/

159/

11/

1517

/11

/1

525

/11

/1

53/

12/

1511

/12

/1

519

/12

/1

527

/12

/1

5

AVERAGE RATE OF 1X & RSS 1 PER AUCTION - 2015

1X

RSS 1


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ACTIVITIES OF THE ASSOCIATION

ANNUAL GENERAL MEETING – 2015/2016

The 96th Annual General Meeting of the Colombo Rubber Traders’ Association was held on the 05th of June 2015 at the Union Ballroom of the Hilton Colombo Residences (JAIC). Hon. Lakshman Kiriella the Minister of Plantation industries was the Chief Guest and delivered the Keynote Address.

CESS ON RUBBER

A concept paper under indicating that the further strengthening of CESS on natural rubber will have a negative impact on both rubber cultivation and value addition was submitted to Dr. P.B Jayasundara, Secretary to the Treasury, Hon. Mahinda Samarasinghe, Minister of Plantation Industries and Hon. Rishad Bathiudeen, Minister of Industry and Commerce which conveyed to the government to take into consideration “the removal of CESS imposed on special grades of natural rubber sold at high prices that will benefit the export sector”, and reconsider further strengthening of the CESS on natural rubber exports and to also consider the removal or reduction of the current CESS on special grades of natural rubber exported (e.g. TPC and Sole Crepe) which is not used by any of the local industry. The Association on behalf of the industry urged the government to remove the CESS imposed on special grades of natural rubber sold at high prices which in turn will benefit the export sector. It was conveyed that the value addition to these special grades is not possible in Sri Lanka due to the existing domestic rubber product manufactures not using these grades of natural rubber as inputs into their production therefore, an increase in CESS to encourage domestic value addition is not advisable.

RUBBER CULTIVATION

Rubber cultivation is the foundation of the value added rubber product industry. According to Sri Lanka Rubber Research Institute (RRI) Sri Lanka’s rubber cultivation has seen a drastic decline over the last forty years. Rubber was cultivated in 214,000 hectares in Sri Lanka in the 1970s but it has dropped to 116,000 hectares (Area under tapping) now. While the rubber production and area under cultivation has dropped, the demand for rubber is expected to go up and Sri Lanka is unable to meet even the current demand.

Therefore, to sustain the growing rubber product sector, it is important to increase the rubber cultivation and production in the country. Supporting, particularly smallholder growers, with reasonable subsidies and the development of high yielding clones to be used in re-planting, is a high priority. CRTA has conveyed to the government to take into consideration this issue on Rubber cultivation at many public forums.


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RUBBER AUCTION SYSTEM

Exporters of rubber in bulk play an important role in the Industry by being largely responsible for the procurement of rubber sold by Licensed Broking Companies, on behalf of the Corporate Sector, through the Public Auction, managed by the Colombo Rubber Traders’ Association and conducted at the offices of the Ceylon Chamber of Commerce. There are, of course, some Producers who have chosen to sell their rubber through other channels, directly to overseas Buyers. However, they use the prices realized at the auctions, which are published in the print media, as a bench mark. This is not a prudent policy since, without the benefit of the competition generated at the auction, more likely than not, they will be “under-selling” their product. This, in turn, will impact auction prices, as Exporters operating at the auction will not be able to compete with the lower prices being offered and will be compelled to drop their limits, resulting in a vicious cycle. The rubber cultivation is dominated by small holders who account for nearly 77% of total production. Given the shortage of large scale plots of land, the small holders will continue to dominate the production. Their individual bargaining power in price is low. Since these smallholders, individually, do not have ready access to facilities to transport their produce to Colombo, which, in any case, would be too costly on account of the small volumes produced by each of them that would not have the benefit of economies of scale, they are compelled to sell their produce at depressed prices to dealers. It is critical that these smallholder growers obtain the best possible prices for their rubber, in line with prices realized at the auction, to enable them to remain viable. The rubber traders help increase the bargaining power by increasing competition in the market for natural rubber; thereby help keep the rubber prices high which in turn ensure profitability of production. If the natural rubber exporters are taken out of the picture, the rubber cultivators will depend on few manufactures to buy their production. This will drive down the prices to the benefit of the manufactures and however, it will discourage small holders to engage in rubber cultivation due to low prices and resulting low profitability. It will benefit both the Producers/Sellers and the Exporters/Buyers if all the rubber produced is channelled through the auction system, compelling the Producers dabbling in exports and, even, the local manufacturers of products for the export and domestic markets, to procure their requirement at the auction. This would generate much greater competition for the products and secure optimum prices. Here too the CRTA has conveyed to the government to take into consideration this issue at many public forums.

MONARAGALA VISIT

The Colombo Rubber Traders’ Association visited Monaragala on 2nd, 3rd & 4th October 2015 to assess the progress of the Uva/Wellassa Rubber growing project managed by Smallholder Plantations Entrepreneurship Development Programme (SPEnDP) which comes under the purview of the Ministry Of Plantation Industries and funded by International Fund For Agricultural Development (IFAD).


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BUDGET PROPOSAL

CRTA submitted a budget proposal to EASL and EDB based on the following issues.

Removal of Export CESS Imposed on Natural Rubber

Government RSS Grades Subsidy Scheme

Request the government to negotiate with Asian Countries for preferential tariff for raw rubber exports.

Low level of research and development

Replanting Subsidy Scheme

DISCRIMINATORY VALUATION OF RAW RUBBER IMPORT FROM SRI LANKA

The Association communicated through the Sri Lanka Pakistan Business Council requesting the Advisory Stakeholders Sub-Committee to make representation on behalf of the Rubber Industry in Sri Lanka on discriminatory valuation of Raw Rubber Imports from Sri Lanka. The Advisory Stakeholders Sub-committee of the Sri Lanka Pakistan Business Council was in constant contact with the Department of Commerce and other high officials in addressing these concerns. On September 03, 2015, the Association was informed that the Pakistan Government has changed the custom ordinance for natural Rubber.

MEETING WITH A DELEGATION FROM THE BOARD OF INVESTMENT (BOI) OF THAILAND

The Board of Investment (BoI) of Thailand organized a fact-finding mission to Sri Lanka during 26 February - 4 March 2016. The objectives were to explore investment opportunities and to exchange information and ideas with governmental agencies, industrial associations, private companies and consulting firms on the current situation and potentials for Thai investment, particularly in Rubber and rubber products sector.

The mission was led by the Executive Director of Regional Investment and Economic Center together with BoI officers and researchers from the Fiscal Policy Research Institute under Thailand’s Ministry of Finance. A formal discussion with the delegation from the Board of Investment (BoI) of Thailand took take place on Wednesday, March 02, 2016 at the Board Room of Ceylon Chamber of Commerce where members of the CRTA were present.

THE CEYLON CHAMBER OF COMMERCE

Mr. M.S Rahim and Mr. S. Poholiyadde were nominated to serve on the Committee of the Ceylon Chamber of Commerce for the year 2015-2016. The 176th The Anniversary of the Ceylon Chamber of Commerce was held on 25, June, 2015 at the Cinnamon Grand Hotel Colombo with a participation of approximately 300 members and guests. Hon. H.M. G.S. Palihakkara, Governor, Northern Province was the Chief Guest.


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Mr. Samantha Ranthunga took over as Chairperson of the CCC and Mr. R. Theagarajah was appointed as Vice Chairperson and Dr. Hans Wijesuriya as Deputy Vice Chairperson. Mrs. Dhara Wijayatilake, Attorney- at- Law, was appointed as the new CEO of the Ceylon Chamber of Commerce, with effect from 1, March, 2016.

THE COLOMBO RUBBER BUYERS’ ASSOCIATION

Mr. A. Edirisinghe served as the representative of the CRBA on the CRTA Committee for the year 2015-2016. The Association held its 80th AGM on March 20, 2015 at the Capri Club.

THE COLOMBO BROKERS’ ASSOCIATION

Mr. S. Meegama of John Keells PLC served as the nominee of the CBA on the CRTA Committee during the year under review.

THE PLANTERS’ ASSOCIATION OF CEYLON

Mr. S. Ganeshan represented the PA on the CRTA Committee during the year 2015-2016. The 161th Annual General Meeting of the Planters’ Association of Ceylon was held on September 11, 2015. The Chief Guest at the event was, Dr.Indrajit Coomaraswamy. Mr. Roshan Rajadurai was re-appointed as Chairman while the Deputy Chairman was Mr. Sunil Poholiyadde for the ensuing year.

EXPORTERS’ ASSOCIATION OF SRI LANKA

Mr. T. Shums of Shums & Company Ltd Mr. H. De Silva of Eastern Merchants and were nominated to serve on the Committee of the Exporters’ Association of Sri Lanka [EASL] for the year 2015-2016, as the CRTA representative and alternate, respectively. The Exporters' Association of Sri Lanka which is affiliated to the Ceylon Chamber of Commerce held its 18th AGM on the 29th July, 2015. Hon. Dr. Harsha De Silva, Deputy Minister of Policy Planning was the Chief Guest and the key note speaker at the AGM and Mr. Bandula Egodage, Chairman & Chief Executive of the Sri Lanka Export Development Board, was the Guest of Honour. Mr. Fazal Mushin of Link Natural Products (Pvt) Ltd was elected as the Chairman for EASL whilst Mr. Harin De Silva of Eastern Merchants PLC and Mr. Chrisso De Mel were elected as 1st Vice Chairman and the 2nd Vice Chairman respectively.


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SRI LANKA SHIPPERS’ COUNCIL

Mr. N. Silva of C. W. Mackie PLC was nominated to serve on the Committee of the Sri Lanka Shippers’ Council, as the representative of the CRTA, for the year 2015-2016 (from April to December). With the retirement of Mr. N. Silva, Mr. Mahesh Kapukotuwe of Almar Trading Co.(Pvt) was nominated to serve on the Committee of the Sri Lanka Shippers’ Council, as the representative of the CRTA for the year 2015-2016. Sri Lanka Shippers’ Council held its 45th Annual General Meeting on the 24th July 2015. The Chief Guest at the occasion was Mr. Tissa Wickramasinghe, General Manager – Commercial & Marketing- Colombo International Container Terminals Ltd. Mr. Sean Van Dort re-elected as the Chairman for the year 2015/2016. Thereafter, Mr. Nalin Silva and Mr. Chrisso De Mel were re-elected as 1stVice Chairman and 2nd Vice Chairman respectively.

The year 2016 will be of special significance to the Sri Lanka Shippers’ Council, being its 50th anniversary. Since its inauguration in 23rd March 1966, the Council has played a vital role in the Sri Lankan economy by looking after the interest of Shippers’ and also to serve as a strong advocate to the Government on Shipping & Port related matters. In order to mark the 50th Anniversary of the Sri Lanka Shippers' Council, a tree planting ceremony was held recently at the Hambantota port. The ceremony was held under the distinguished patronage of Hon. Arjuna Ranatunga, Minister of Ports & Shipping

SRI LANKA SOCIETY FOR RUBBER INDUSTRY

Mr. W.T Ellawala was re-elect as the Chairman of SLSRI for the year 2015/2016 and Mr. Maasiri Dias was nominated to represent the CRTA on the Board of the Sri Lanka Society for Rubber Industry for the year 2015.

Mr. W.T Ellawala was appointed as a member of the Ministerial Sub Committee on Rubber by the Hon Minister of Plantation Industries. Rubber Master Plan – The Master Plan has been worked out for a 10 year period from 2016-2025 as a national agenda for the rubber industry’s development and prepared by the Plantation Ministry together with the Industries and Commerce Ministry and the Sri Lanka Society of Rubber Industry. The Master Plan has set a target of achieving a turnover of USD 3.5 billion by 2024 which include incomes from raw rubber sales, rubber products manufactured, sold locally and exported and rubber wood based products sold. The documents describe the projects and strategic initiatives that must be implemented to achieve the target.

The SLSRI held their AGM on 30, March 2015.


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APPROVED WAREHOUSES OF BROKER / SELLER REGISTERED NO

LOCATION DETAILS

1

2

3

4

5

6

7

8

SIYAKA PRODUCE BROKERS (PVT) LTD

No. 349 B , Dippitigoda Road, Hunupitiya, Wattala

LANKA COMMODITY BROKERS LIMITED

No.01 Muthurajawela Road, Muthurajawela, Hendala, Wattala

FORBES & WALKER WAREHOUSING (PVT) LTD

No.805/4C, Bangalawatta Road, Building-D Mabola, Wattala

JOHN KEELLS WAREHOUSING (PVT) LTD

No.455/1, Dippitigoda Road,Hunupitiya,Wattala

JD & SONS (PVT) LTD

Main warehouse store no: 1,# 106 Weliamuna Road, Hendala, Wattala Main Warehouse, # 109, Weliamuna Road, Hendala, Wattala 455/1 & 349 A, B, & C, Dippitigoda Road, Hunupitiya, Wattala Main Warehouse Store no:2, # 106 weliamuna road,hendala, wattala


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THE CHAMBER BOARD OF ARBITRATORS AND SURVEYORS - 2015

The Following were approved as Arbitrators for the year 2015 – Rubber Mr. M. S. Rahim A. M. Rahim & Co. Ltd Mr. J. B. L. De Silva Eastern Merchants Ltd Mr. S. S. Poholiyedde Kegalle Plantations Ltd Mr. Richard Jansz J. D. & Sons (Pvt) Ltd Mr. U. Bandaranayake Forbes & Walker Ltd. Mr. R. C. Peiris Kotagala Plantations Ltd The Following were approved as Surveyors for the year 2015 – Rubber Mr. K D P Perera Forbes and Walker Commodity Brokers (Pvt) Ltd. Mr. F X Felix PNVX Cargo Inspection Services (Pvt) Ltd.


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BALLOT FOR THE ELECTION OF THE COMMITTEE – 2016/2017

On the results of the ballot, the following were elected to the Committee of the CRTA for the year 2016-2017:

Buyer Representatives

Almar Trading Co. (Pvt) Ltd A .M. Rahim & Co Limited

C.W Mackie PLC Eastern Merchants PLC

Richard Peiris & Co. Limited Shums & Co Ltd

Seller Representatives

Balangoda Plantations PLC Kahawatte Plantations PLC

Kegalle Plantations PLC Kelani Valley Plantations PLC

Kotagala Plantations PLC Pussellawa Plantations Ltd

BY ORDER OF THE COMMITTEE SGD. FOR SECRETARY

Documents

LIST OF MEMBERS - crtasl.org · The Colombo Rubber Traders’ Association Annual Report & Accounts 2015/2016 3 REPRESENTATION ON OTHER BODIES THE CEYLON CHAMBER OF COMMERCE MrMr