Government institutions to sell scrap metal to local industries
View(s):The Government has decided to sell scrap metal produced by the state sector to local industries outside the formal procurement procedure, it was announced recently.
This includes empty shells and scrapped armour plates from the Sri Lanka Army, Sri Lanka Air Force and Sri Lanka Navy, it said.
Large stocks of scrap metal are piling up in junkyards across the country as a result of a scrap metal export ban, steel sector exporters said adding that the prices of scrap metal has collapsed due to drop in demand.
Cabinet approval was given to a proposal presented by the Ministry of Industries to solve the issues faced by the traditional craftsmanship industries and rural industries sector.
Accordingly, the empty bullet/shell cases and armour plates will be handed over to these industries on a concessionary basis in order to provide these manufacturers with the opportunity to price their products to compete with the imported goods, a senior official of the ministry said.
Although the scrap is to be sold to local industry bypassing normal procedure to the National Crafts Council but it will be subjected to the price matrix approved by the Cabinet of Ministers in 2017, he added.
The scrap metal will be obtained from Sri Lanka Telecom Company, Sri Lanka Railways Department, Sri Lanka Electricity Board and the National Water Supply and Drainage Board.
40,000 people, more than 70 medium industries and over 300 small industries in the Kaduwela, Gampaha, Kandy and Kegalle have been badly hit by the scrap metal exports ban, several businessmen in the sector complained.
These industries earn a revenue of over Rs. 750 million per month by producing value added products including water pumps, manhole covers, machinery and spare parts, but this has almost come to a standstill due to the shortage of scrap metal, they said.
Local businessmen sell scrap metal at a reduced value to other countries, they added.
However, the export companies noted that they are also earning foreign exchange by selling scrap metals which cannot be recycled in Sri Lanka.