Weak laws cause of substandard goods in the Sri Lanka market
Sri Lankan manufacturers and importers, due to weak product liability laws compared to stronger laws in other countries, tend to sell their products without proper quality or standards.
This was the view expressed by Dr Lalith N Senaweera, Director General/CEO, Sri Lanka Standards Institution (SLSI) when he addressed the 23rd AGM of the Lanka Confectionery Manufacturers Association (LCMA) held in Colombo last week.
Ms Shanaz Hakeem of Zai Industrial Projects (Pvt) Ltd was elected the Chairperson for the ensuing year along with the other office bearers.
Dr. Senaweera said that consumers always search for quality standard products and it is the responsibility of everyone concerned to ensure quality products. In many countries, he pointed out that the products liability laws are so stringent that no manufacturer or importer would be able to sell substandard products.
If these laws are strict the manufacturers and importers would take extra care, but now they know they could sell anything, he said. Dr Senaweera said that if the laws are strict, then the product quality could be ensured and also it would facilitate the prevention of dumping products from other countries.
He said that in this regard the LCMA has a big role to play. “You can conduct seminars throughout the country in different forums and address the people to help the drive for quality – it is like a market driven concept”.
As an association, he stated that they could thus not only educate the consumer and create a voice, but also influence the policy makers and authorities in showing them the gaps at the policy level in tightening these laws and if that could be done it would be a great contribution towards ensuring a healthy nation.
Sylvester Perera, outgoing Chairman, LCMA placing the annual report before the membership said that the confectionery industry is facing a number of constraints. He pointed out that import tariffs on some items are more than their CIF price and the cost of some raw materials used by the local confectionery manufacturers are the highest in the region.
He stressed the need to elevate the industry to the next level and strengthen the industry to export more of their products. Giving an example of high tariffs, he said that the amount of import levies charged for whey power is higher than the CIF price.
Export markets are highly competitive, he said and to meet this tough competition the government should give rebates on all import levies. He said the LCMA has proposed amendments to current regulations permitting exporters to claim the import levies that have been paid at the point of importation in order for the products of small and medium scale manufacturers to be competitive. He pointed out that advertisements of international brands and products mainly made in India shown by satellite and cable TV operators in Sri Lanka such as Dialog and Peo TV have created unfair competition with their Sri Lankan brands.
The government does not charge anything on these advertisements. He requested the government to charge Rs 25,000 per minute on a pro rata basis on these TV operators.