This document summarizes Sri Lanka's wood industry, focusing on the Moratuwa furniture cluster. It notes that the cluster has been in existence for decades but is currently incapable of producing quality furniture for export markets. It identifies issues like inadequate wood supply, lack of training and financing. Improvement strategies discussed include using research to upgrade small manufacturers, improving product quality, expanding markets, and minimizing pollution. The goal is to establish Moratuwa as a center of excellence for timber product design and innovation to increase exports and employment in the wood industry.
18. Information Technology Division /Sri Lanka Export Development
Board
H.44 Wood and articles of wood; wood charcoal
-4,000.00
-2,000.00
0.00
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
2008 2009 2010 2011 2012
TotalValueinLKR(millions)
Export performance
Exports
imports
Balance of trade
18Prof. Hiran Amarasekera, 2013
19. In a state of deterioration in terms of quality and competitiveness
inadequate wood supply in term of quality and quantity,
Unfavorable business climate,
Scarcity of trained manpower,
Lack of market opportunities, research support and
Lack of finances for investments to improve the industry.
20. Lack of stable policy direction
Excessive regulation of transport of wood and finished
products
Bad image of the quality of the industry
23. Large firms use advanced technology
Have a integrated production process with saw
mills, timber seasoning and treatment facilities
Hence it is an organized cluster
Can be upgraded to by a comprehensive
development program.
24. Wood based industry study
for Forestry sector master
plan 1995
Upwood Project for upgrading
wood working industry in
Moratuwa - Ministry of
Enterprise Development,
Industrial Policy and
Investment Promotion, 2003
Wood Industry Development
study by Ministry of
Industries
Study on improvement of
Moratwua Furniture cluster
and Wewaldeniya cane
cluster – National Enterprise
Development Agency (NEDA)
and National Chamber of
Commerce - 2007
28. Traditional Skill
Base
Transport Facilities
Physical
infrastructure
facilities such as
roads,
communication and
electricity
Apprenticeship
Training Institute,
University of
Moratuwa and
University of Sri
Jayewardenepura
can provide the
skilled workforce and
S&T manpower
30. MARKETS OF MORATUWA
CLUSTER
80% of the furniture marketed are semi-
finished - furniture with out sanding and
polishing
Workshops with the floor area 250-500
sq.ft only produce semi-finished furniture
Large-company manufacturers make and
display both semi-finished and finished
furniture in their showrooms
Few companies undertake export orders
31. Use more high density timber (above 800kg/m3)
timber than low density wood (below 800kg/m3).
Timber is transported in log form or as sawn timber
shortage of good quality timber in required
quantities the local market,
Timber is imported to fill the gap.
32. Teak is the major
species
Mahogany, Jak,
Kolon, Satin
Alstonia, Ginisapu,
Lunumedella, Rubber
33.
34. Improve utilization of available sustainable timber resourcesImprove
Improve product quality,Improve
Increase marketability of productsIncrease
Minimize environmental pollution.Minimize
36. Selected industries to upgrade into international standards
Introduction of new technology
Transfer of knowledge
Providing systematic training
Improving furniture designing,
Timber preservation,
Seasoning
Machine maintaining capabilities.
37. Use of research data on timber processing to upscaling and
redefining the small timber manufactures
Improve utilization of available sustainable timber resources
Increase the supply of raw materials to the Moratuwa
cluster
Improve product quality
Increase marketability of products
Minimize environmental pollution.
41. Establish area of Moratuwa as region of excellence in
Timber Product designs.
Upscale and redefine the small timber manufactures in
Sri Lanka.
Capacity building through trainings, knowledge &
technology transferring.
Create unique branding identity to Sri Lankan Timber
designs & protect it through Intellectual Property Rights.
42. Enhance high-end export market for
Sri Lankan Timber & Timber base
products
Increase the percentage of
contribution to GDP by Timber &
Timber base product
Exports for the Economic growth
43. Employment generation
Increasing the percentage of contribution
to GDP by Timber based products.
Dr Hiran Amarasekera
University of Sri Jayewardenepura
http://scholar.sjp.ac.lk/hiran twitter @hiran