Sri Lanka’s Lanka Ceramic outsources sanitaryware production to China

ECONOMYNEXT – Lanka Ceramic, the clay mining company that is part of Sri Lanka’s Royal Ceramics group, has said it has revived its sanitaryware business with production outsourced to China.

“The company went back to its roots and revived the pioneering business arm of sanitaryware,” Managing Director Mahendra Jayasekera said.

“Further, in order to provide superior quality products into the local market, the company has outsourced production to China to provide deluxe brand sanitaryware,” he told shareholders in the company’s just-released annual report.

Jayasekera said Lanka Ceramic experienced a downturn during all four quarters of 2018/19 due to work disruptions and restructuring and also delays in getting mining licences.

The slowdown in the construction sector also had weakened demand for ceramic products like tiles which had a ripple effect on demand for raw materials like clay.

Lanka Ceramic’s move to outsource sanitaryware production to China mirrors initiatives by another group unit, Lanka Tiles, to outsource tile production to Indian companies to expoit lower costs there.
 (COLOMBO, 17 June, 2019)