“We are all aware that with the open economy, there were many industrialists who came from abroad. They opened industries in various parts of the island including Matugama, my electorate and Hambantota, the district of President Mahinda Rajapakse. Of those, how many are still in operation? We gave them land and all infrastructure facilities. In addition, even financial facilities were provided to these foreign businessmen through our banks,”___________________________
by Sooriya Liyanage
( April 01, Colombo, Sri Lanka Guardian) The government is committed to protect the local industrialist. Today the country is suffering from the consequences of not safeguarding our entrepreneurs.
Different foreign investors opened a factory in Agalawatta on five occasions and it was closed each time with the investors decamping. That factory was due to be opened for the sixth time last Saturday, (March 15). Talking about local industrialists alone is not enough. We have to protect them too, said Kumara Welgama, Minister of Industrial Development last Friday (March 14).
Addressing the ceremony to award the ISO 9001-2000 SGS certification to Elcardo Industries held at the Taj Samudra Hotel, the minister said the concept of Mahinda Chinthana gave high priority to the local industrialist. “We are all aware that with the open economy, there were many industrialists who came from abroad. They opened industries in various parts of the island including Matugama, my electorate and Hambantota, the district of President Mahinda Rajapakse. Of those, how many are still in operation? We gave them land and all infrastructure facilities. In addition, even financial facilities were provided to these foreign businessmen through our banks,” Minister Welgama said.
After about three, four years, some of them disappeared even without paying back their bank loans and EPF dues. There were many such factories that are still closed. Even in the Hambantota district, there were three such factories, the minister revealed.
He said the scenario would have been different had the government given assistance to the local entrepreneur. There had been an era when Sri Lanka could boast of quality, locally manufactured textiles. Citing an example, the Minister said the Gold Seal fabric, manufactured by Cyntex Textile Factory owned by Mr. Gnanam, was a superior quality product, which could confidently compete even with imported textiles. There were also other local industrialists in the textile sector such as Mr. Piyadasa of the Dasa Group, the minister said.
“Today, the local industry has taken a nosedive with the exception of entrepreneurs such as Maliban and Munchee biscuit manufacturers. The manufacturing industry, especially textiles, had virtually collapsed,” he lamented.
Elaborating on the extent of the debacle Minister Welgama said that when the country needed uniform material for school children, Sri Lanka could manufacture only 30 per cent of the requirement. Seventy per cent had been imported. Today the gap had gradually been reduced to about 50 per cent. Had we encouraged our industrialists, we wouldn’t have been importing textiles today, the minister pointed out.
Emphasising the importance of safeguarding our industries and industrialists, Mr. Welgama said that DI was our own industry producing quality footwear. It really did not have the opportunity to blossom into a national industry for the simple reason that floodgates had been opened to import footwear.
“We managed to avert the collapse of our footwear industry - after consulting veterans in the industry of course - by imposing a Rs. 300 tax per pair of footwear. Also the ministry had selected technicians from our own factories, who were sent overseas on a six-month study tour on shoe designing. It is the fourth batch being trained now. As a result, today most of our showrooms proudly display our own shoes, designed and manufactured in our own factories,” the minister said.
Commenting on the Elcardo Industries and its founder, Athula Weeraratne, Mr. Welgama said he was well versed with the business lines of Elcardo and he did not need the prepared document done for him by the ministry to deliver his speech.
Minister Welgama said he had known Athula, for the last 25 years. Recalling his first encounter with Athula, he said that at that time owners of Mercedes Benz cars, especially Box and 123 models, faced problems as the silencer of those models became defective in a very short time. It could be replaced with a new one from the Diesel and Motor Engineering Co. but within six months the same problem arose.
“I finally overcame this problem when I went to Elcardo at Nawala. The silencer Athula turned out for me, and especially the muffler, which was a very specialized job, lasted very much longer than any made locally or imported,” revealed Mr. Welgama.
He also said that he owned a 4 Sri series MG racing car in which the sound of the exhaust was very special and not everybody could do the muffler. “Those who drove racing cars changed gears more often for the simple reason that as young men we were certainly thrilled to hear that particular roar from the exhaust. I especially derived extreme pleasure and I simply could not enjoy the ride if that exhilarating beat was missing. Even today, my MG has that silencer turned out by Athula of Elcardo,” Mr. Welgama said.
“I do not need prepared speeches to talk about Athula,” he said and added that the greatness of the person was the way he conducted himself with dignity and decorum. “Athula is still the perfect gentleman I used to know 25 years ago,” the Minister said.
The second stage of Athula’s endeavours was the manufacturing plant in the Industrial Zone in Ratmalana on a block of land he received when the late C. V. Gunaratne was the minister. When he wanted to expand his operations, Athula met me as the Minister of Industrial Development, to obtain the adjacent block. The Ministry Additional Secretary, Mr. Piyatillake, highly recommended the project, but the minister had insisted on inspecting the existing Elcardo plant before granting approval.
“When I visited his factory, I saw his products, the modern machinery and equipment and the way the staff got about their work. I was so impressed by his achievements, I immediately decided that Athula was the most suited for the adjacent block Today, in the factory constructed on that block of land, Elcardo is manufacturing roofing sheets,” Mr. Welgama said and added, “Today I am the happiest among us all of us here on the achievement of Elcardo in getting the ISO 9001-2000 SGS certification”.
Athula Weeraratne, Founder and Managing Director of Elcardo Industries in his address said that he was indeed proud of the success of his company, which had very modest beginnings. The industry started 25 years ago with only five employees and today it employed 150 with another 200 being indirectly employed.
- Sri Lanka Guardian
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