Exploring Sri Lanka’s Leather Industry
Introduction
The leather industry in Sri Lanka, predominantly in the small and medium-sized sectors, holds immense promise for future growth and development. This labor-intensive sector not only contributes to employment generation but also has the potential to boost the country’s Gross Domestic Production. This article delves into the historical emergence, current status, challenges, and recommendations for the Sri Lankan leather industry, shedding light on its significance and prospects.
Historical Emergence
During the Second World War, the commercialization of Sri Lanka’s leather industry took shape with a primary focus on producing leather goods for the Armed Services. Initially, the government was at the helm of operations, eventually giving way to private sector involvement in the 1960s. Presently, the Colombo and Gampaha Districts host 14 private tanneries. While two tanneries exclusively practice vegetable tanning, the others engage in both vegetable and chrome tanning. Predominantly small-scale, these tanneries process up to three tons of raw materials, with a few considered medium-scale, handling around six tons per day. The tanneries’ output ranges from semi-finished to finished leather, catering to domestic leather goods manufacturers and export markets.
Challenges and Current Landscape
The Sri Lankan leather industry confronts two major challenges today. The first pertains to the inability to meet the Central Environmental Authority’s standards for tannery effluent discharge. The second centers around intensifying competition in the export market, with rivals vying on both price and quality fronts. Industry experts suggest that the local tanneries’ technology is outdated due to environmental risks, inhibiting technological upgrades over the past decade. However, the industry’s survival and success hinge on product diversification and quality enhancement to cater to global demand.
Potential for Growth
The leather goods manufacturing sector, requiring skilled labor, could potentially absorb the youth unemployed, potentially stemming from the removal of garment industry quotas in 2005. However, to foster this growth, the tanning sector’s development within Sri Lanka becomes pivotal. Imported leather proves costly and inefficient for manufacturing leather goods, necessitating a robust local tanning infrastructure.
Technological Landscape
A recent research study examined the technological landscape of the Sri Lankan leather industry, particularly the tanning sector, employing the perspective of embodied technology. The industry’s technological capability was assessed using the Thailand Development Research Institute’s 1989 model, revealing room for improvement across various technological components. While machinery usage was widespread, sophistication remained modest. The industry exhibited an adequate capability to acquire new technology, but areas such as training, production management, organizational practices, and knowledge accumulation required enhancement.
Recommendations for Progress
The study generated recommendations to propel the Sri Lankan leather industry forward. Topping the list is the immediate implementation of the Bata-atha project, followed by systematic training and skill development programs, export marketing development initiatives, the advancement of production-related equipment, establishment of a testing laboratory, certification programs, coordination mechanisms between public entities and tanneries, and initiatives to improve raw hide quality.
Conclusion
The potential of the Sri Lankan leather industry is palpable, with the right strategies and implementations. By addressing challenges, upgrading technology, fostering skill development, and prioritizing strategic initiatives, the industry can not only flourish domestically but also make a mark on the global stage. With a coordinated approach and the right investments, the leather industry could emerge as a significant player in Sri Lanka’s economic growth story.
