Government statistics indicate that the local vehicle assembly industry has generated over 3,200 direct and indirect employment opportunities in the past few years, said Director, Engineering Division, Industrial Development Board (IDB), Nishantha Weerathunge.
He was speaking at an event hosted by the Automotive Component Manufacturers Association of Sri Lanka (SLACMA).
“The industry has helped secure around 5,000 jobs in companies involved in the motor vehicle business and over 20,000 indirect employment opportunities providing support services for these companies.
“The Government’s initiative to develop local vehicle assembly has been a lifeline for these companies and their employees during the economic crisis in the absence of completely built motor vehicle imports.
“In Sri Lanka, talk of a manufacturing economy often begins only when the country is in economic trouble. The promotion of industry as a government policy was very slow due to the lack of a commitment by the authorities and the lack of knowledge among the people.
As a result, the automobile manufacturing/assembly and automotive component manufacturing industry that sprang up, faltered.
“Although the history of the industry goes back to the 1980s, the industry was not fully supported until the end of 2020. It was in that, the Ministry of Industries along with other Ministries and Departments introduced a Standard Operating Procedure (SOP) related to the assembly/manufacturing of automobiles and manufacturing of automotive components.
“Based on the Government’s policy of taking Sri Lanka to a manufacturing economy, the Ministry of Industries has been entrusted with the lead role in the development of the country by developing the local manufacturing industry sector.
“For this purpose, twenty manufacturing industries have been identified, among which automobile assembly/manufacturing and automobile component manufacturing take a leading role.
“A Consultative Committee on the production and assembly of automobile components related to this industry has also been established by the Ministry of Industries with members representing the industrialists engaged in this industry,” he said.
“Vehicle assembly/production took place in Sri Lanka from time to time. “However, with the aim of regulating and promoting the industry, a Standard Operating Procedure (SOP) was prepared only in 2020, incorporating the opinions of experts in the field and in accordance with international standards and received Cabinet approval on 11/1/2021,” Weerathunge said.
The main factors that led to the implementation of the standard operating procedure is the large amount of foreign exchange that goes out of the country for the import of vehicles and the need to ensure a minimum vehicle requirement for the country, following the suspension of vehicle imports due to the Covid epidemic. The local assembly companies are not allowed to add imported components bought from the local market and try to prove that they have added more than 20% value.
