Sri aimed at improving competitiveness, governance, and public financial

Sri Lanka is a south Asian island, with the area of 65610 km2 and lower middle-income of 21.2 million people with per capita GDP in 2016 of $3,835 also 2.24 million tons of domestic cement production (2015) and 204 kg of per capita cement consumption. Since the civil war ended in 2009, the economy has grown on average at 6.2% a year, reflecting a peace dividend and a commitment to reconstruction and growth, but there have been signs of a slowdown in the last three years. The economy is projected to grow by 4.6% in 2017 and marginally exceed 5.0 percent in the medium-term, driven by private consumption and investment. The government is committed to implementing an ambitious medium-term reform agenda aimed at improving competitiveness, governance, and public financial management that would achieve long-term benefits (World Bank data, 2016).

 

 

According to central bank annual report 2013, Sri Lanka has estimated to be consuming about 5.8 million tons of cement per annum. In the first five months of 2016 Sri Lankan cement production has been increased 19.7 MT to 1.041 million tones, imports also rapidly increased 18.4% to 1.88 million metric tons. It indicates the recovery of civil engineering sector similarly to the economic development. Till first five months of 2016 domestic cement production and imports accretion by 465000 tones, up 18.9% from earlier to 2,928 million tones. Though, January to May of 2015, production and imports rise only 4.4% from a year earlier or 103,000 tones to 2.463 million tones.

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Siam City Cement (Lanka) Limited (INSEE cement). produces 1.3 million MT of cement and approximately 640,000 MT of clinker annually. It has Sri Lanka’s only fully integrated cement plans with two rotary dry kilns, each with capacity 1100 MT/day in Puttalam and a grinding station in Galle. Sri Lanka’s annual demand for cement sold is about 5.9 million MT and INSEE cement is a leading player in the cement market in Sri Lanka with approximately 38% market share.

However, Sri Lanka’s situation is much inequable from the global cement industry as world trade in cement is hardly 4% whereas Sri Lanka imports 66% of its requirement either in the form of cement or clinker. (News, the Sunday Times). Therefore according to World cement magazine, Sri Lanka become the fourth-largest cement importer in the world.

As well as 75% of clinker is being imported from nearest countries like Pakistan, Malaysia, India, Vietnam, Thailand, and Indonesia.