1. Export oriented Rubberwood industry in Sri Lanka
Isurie Dharmasoma AS

2. Rubberwood industry
Since the 1980’s, rubberwood has become a major wood product in many countries.
Rubberwood has special properties to use as a wood product.(light color, easy machining & staining properties)
It has a great potential for substitution of Asian timber species such as Lauan, Meranti, Ramin & Beech.

3. The potential of rubber wood as a source of timber has already been recognized in Thailand, Sri Lanka, Indonesia and Malaysia.
Malaysia has the most diversified rubberwood industry.

4. Rubber timber
Small diameter logs
Sawn logs
Veneer logs
Sawn wood
plywood
Chip board
MDF
cementboard
Fuel wood/charcoal
Furniture mills
Furniture, Brush handles, blocks, wooden toys

5. Processing of rubber wood
Sawing
Preservative Treatment
Seasoning

6. Wood working operations
Ready to export

7. Export procedure Select a buyer
Register as exporter in EDB, Inland Revenue dpt, Sri Lanka Customs
Obtain license from FD to export wooden products
(Wood –Items under license control)
Sales contract
Export

8. Exported types of rubber wood
Densified wood in blocks, plates, strips or profile shapes*
Builders’ joinery & carpentry of wood, including cellular wood panels, assembled flooring panels**
Parquet panels
For mosaic floors of rubber wood
Other multilayer rubber wood
Most rubberwood is traded in the form of finished furniture (55%) and furniture parts (17%).
Trade in rubberwood sawnwood is small.

9. Export of rubber wood based products
Country
2004
(Rs)
2005
2006
2007
2008
Maldives
USA UK
Rubberwood products are exported mainly to the United Kingdom, Unite States, Maldives, France, Germany, Saudi Arabia

10. Major rubber wood based products exported countries(2004-2008)
Value(Rs)
Year

11. Export Performance of Rubber wood based Product Sector
Year
other wood of Rubber* (kg)
Densified wood of rubber wood**(kg)
Parquet panel of rubber wood(kg)
for mosaic floors of rubber wood(kg)
other multilayer of rubber wood(kg)
2004
2005
2006
2007
2008

13. Contribution of Rubberwood industry to total exports
Year
FOB value(Rs)
Total(Rs)
% of total
2004
0.52
2005
0.49
2006
0.45
2007
0.60
2008
6.95
Rubberwood based products are a small amount of total exports of the country.

14. Rubber wood availability
Rubber wood plantations
Estate plantation(>20 ha)
66076ha
Small holding(<20ha)
48655ha
Rubberwood use only after the tree completes its latex-producing cycle and dies.
Rubber wood plantations produce an average of 0.24m3 of peeler logs & 65m3 of sawn logs/ha.

15. District
Small holding/ha
Estate/ha
Total/ha
Kegalle
14503
20300
34803
Kalutara
13332
16590
29922
Ratnapura
9532
12137
21669
Colombo
3235
3829
7067
Galle
1667
4851
6518
Matara
1451
2163
3614
Gampaha
2609
446
3055
Kurunegala
557
2196
2753
Matale
170
1691
1861
Monaragala
531
1300
1831
Kandy
964
202
1166
Hambantota 39 2 41
48665
66076
114731
Rubber wood plantations by district in Sri Lanka, 2002(DCS 2002)

16. Problems faced by industry…….
Reduce export capacity
Outdated production technology
Difficulties in meeting buyer-required product volumes
Difficulties in maintaining timely delivery of orders
lack of experienced, skilled labor

17. The raw material has been in short supply in recent years.
Exporters have to bargain so much as buyers can get cheaper products From Malaysia.
The raw material has been in short supply in recent years.
Cost of raw materials is increasing rapidly.
Year
cost of cubic ft(Rs)
1990 70
2001 80
2006
180
2009
160(24ft<)
100(18-24ft)

18. Lack of information on buyers
Lack of government policies to encourage new investments 
Lack of government policies to encourage existing exports
High shipping/handling cost
High export duties/tariff

19. Exporters have paid little attention to adopt modern communication methods with buyers.
Industry export non-certified wood products due to the high costs of certification and no foreseeable benefits to the company.

20. Suggestions
Government institutions should be partner with industry in taking the steps to strengthen the export.(Ex:EDB)
Modify policies and regulations regarding wood and wood product transportation and custom procedures
conduct workshops to educate and train managers and employees to minimize waste, improve quality, introduce new designs, and maximize labor efficiency.

21. Use modern electronic methods of communication to exchange and find new information.
Development of websites
Exporters should invest in marketing or advertising their products in foreign markets.

22. Conduct awareness programs to educate exporters about the potential benefits of forest certification.
Formation of exporter groups will reduce certification costs by obtaining group certification.
Increase the extent of rubberwood plantations.

23. Discussion
The rubberwood processing industry in Sri Lanka is the oldest of all the countries.
However, this industry has not developed significantly either in volume production or in the level of technology used in processing.
Most of industries provide products primarily to the domestic market ,small % of their production export to international markets.
Most industries rely on a few major buyers with significant bargaining power.
However, there is an upward trend in international demand for Sri Lankan rubberwood furniture.

24. References
Mr. W.Jinadasa, statistician, statistical department, Sri Lanka customs
Mr.Indika, Rowood Lanka industries(pvt)Ltd,Nelundeniya
Mr. Premarathne-Factory manager, Gamage saw mills, Padukka
Manager,Haritha furniture and saw mills, Homagama
Funeral bells for the rubberwood industry,Chathuri Dissanayake, Sunday Times, October 22, 2006
Rubberwood Processing Manual , Research Institute Of Wood Industry , Chinese Academy Of Forestry ,Beijing
Non-forest Tree Plantations ,Killmann,Forestry Department, FAO, Rome Italy, April 2001

25. The Utilization, Processing And Demand For Rubberwood As A Source Of Wood Supply Byjoerg Balsiger Et Al,FAO Forestry Planning And Statistics Branch
Tropical wood product exports from Sri Lanka, Perera et al, Forest Products Journal
Rubberwood, Hand book, Sakar plywood Ltd
Export and Import Statistics, Sri Lanka Customs,2004
Export and Import Statistics, Sri Lanka Customs,2005
Export and Import Statistics, Sri Lanka Customs,2006
Export and Import Statistics, Sri Lanka Customs,2007
Export and Import Statistics, Sri Lanka Customs,2008

26. Thank you