Financial Times

Industrialists say airport shuts door on local products
Sri Lankan governments, present and past, don’t provide any significant support to local industry and even when this happens, its just lip service, officials from different sectors complained last week, saying even President Mahinda Rajapaksa’s promises on this issue have been hollow.

At a Colombo press conference arranged by the Ceylon National Chamber of Industries, officials expressed their dismay at the refusal of the display and sales facilities for Sri Lankan products at the Bandaranaike International Airport.

Airport authorities have barred Lankan manufacturers of confectionery, cosmetics and tobacco products from selling or displaying products at the airport by Airport and Aviation Services (Sri Lanka) Ltd – all because of an exclusive agreement with a foreign company.

The AASL, after being persuaded by the Export Development Board, agreed to allow EDB only 308 sq ft in an unimportant part of the airport terminal for the use of a display centre for local products.

After a long process, 12 local manufacturers were selected to display their range of products. But on February 17 the airport told the EDB that these products should exclude confectionery, cosmetics and tobacco products.
This has barred four leading manufacturing companies which were selected, because they trade in the “banned” list.

They are Ceylon Biscuits Group manufacturers of biscuits, chocolates, cakes, organic dehydrated fruits and juices etc; Multichemi International Ltd, manufacturers of herbal cosmetics and detergents; Link Natural Products (Pvt) Ltd, manufacturers of herbal healthcare, ayurvedic pharmaceuticals and wellness and Thansher’s & Co, manufacturers of cigars.

Samantha Kumarasinghe, Chairman, Multichemi Group expressed disgust and displeasure over the attitude of some of government officials saying the airport is the gateway to the country for foreigners and to promote the country’s products they must have to be displayed at this gateway.
He said that though 12 Sri Lankan producers have been allotted only a meagre 300 sq ft, the authorities have allowed a trading company dealing with garments as much as 1,500 sq ft, accind that “There is absolutely no justice and transparency”.

He said the possible reason for not allowing the products of these four companies could be adduced to an agreement entered into by the authorities with a foreign company some years ago.

Kumarasinghe said the attitude of some of the bureaucrats involved appear to be questionable and highly detrimental to the progress of local industry, demanding that these “unpatriotic” elements in state agencies must be investigated and if found guilty, severely dealt with.

He said that though successive governments have promised to help local industrialists, that assistance hasn’t come. President Mahinda Rajapakse also vowed to help the local industry but nothing has happened.

Thasneem Lafir, Director, Thansher’s & Co said that in most countries there are stringent restrictions imposed on imports while exports are well advertised and promoted. But in Sri Lanka it is the other way about.

Jude Rubera, Export Manager, Ceylon Biscuits Group said they are the market leader with a 60 percent share of the market in the country and it is globally accepted brand exported to more than 36 countries. He said they are not looking at big volume of business at the Airport, but to portray a proud Sri Lankan product which would bring in more and more business to Sri Lankan products in foreign countries.

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