A delegation from the National Chamber of Commerce of Sri Lanka met Mr P D Fernando, Director General of Commerce on 27^th June 2012 and explained to him the unfair competition that has to be faced by the local adhesive industry due to the influx of low quality adhesives from other countries at reduced duties. They pointed out that the import duty for adhesive from India & Pakistan are as low as 0% while the duties from other countries are in the range of 15%. This low duty regime has created an unfair competition to the local adhesive industry which supply about 60% of the local adhesive requirements mainly to the local footwear, furniture and other allied industries.  The Chamber requested the support of the Director General of Commerce especially in deciding tariff for high quality products that are successfully manufactured within the country so that the local industry could survive and help to save foreign exchange which otherwise  is spent on low quality imports.  They further requested the DG Commerce to convince the policy makers and to charge a cess for imported adhesive so that local industry will have a fair competition as against the present unfair competition. The Chamber representatives said that local adhesive industry was started in 1960s and performing well until the recent past and the reduced import duty introduced lately has adversely affected the industry. They further pointed out that Sri Lanka was exporting adhesive in the past but due to the import duty reduction the industry is presently struggling for survivals. Mr P D Fernando, Director General of Commerce pledged his support to convince the policy makers to look after the industry with fair practices. Mr Fernando thanked the National Chamber of Commerce of Sri Lanka for bringing genuine issues so that the Department could actively engage in promoting the local industry. He also pointed out that the Chambers should highlight problems in this nature for the betterment of the local industry.

Mr. P D Fernando, Director General of Commerce (center) discussing the issues. On his right are officials of the Department of Commerce. On his left are Mr. Nizer Cardar, Chairman – NCCSL Industries Committee and Mr. E M Wijetilleke, Secretary General/CEO of the National Chamber (extreme left).