study on sri lanka forest wood & paper (incl. bamboo) product...

Study on Sri Lanka Forest Wood & Paper (incl. Bamboo) Product Sector and Industrial Opportunities

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STUDY ON SRI LANKA FOREST WOOD & PAPER

(INCL. BAMBOO) PRODUCT SECTOR AND INDUSTRIAL

OPPORTUNITIES

By

Piyasiri Gunasekara

United nations industrial development Organizations


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Contents 1 Summery ................................................................................................................1 2 Sri Lanka Country Profile ......................................................................................2

2.1 Overview of the island ...................................................................................2 2.2 Environment - current issues:.........................................................................3 2.3 Climate of Sri Lanka ......................................................................................3 2.4 Agro ecological regions .................................................................................5

3 Forest sector in Sri Lanka.......................................................................................6 3.1 History............................................................................................................6 3.2 Plantation forestry in Sri Lanka .....................................................................8 3.3 Forest products ...............................................................................................9 3.4 Legal aspects of forestry and timber ..............................................................9

4 Raw materials supply local and imported ............................................................12 4.1 Introduction ..................................................................................................12 4.2 Sawn wood ...................................................................................................12 4.3 Plywood and particle board..........................................................................15 4.4 Pulp and paper..............................................................................................16 4.5 Paper making fiber .......................................................................................17 4.6 Furniture .......................................................................................................17 4.7 Parquet..........................................................................................................19

5 Quality issues .......................................................................................................20 5.1 Introduction ..................................................................................................20 5.2 Sawn wood ...................................................................................................20 5.3 Furniture .......................................................................................................21 5.4 Plywood and veneers....................................................................................21 5.5 Pulp and paper industry................................................................................21

6 Technologies available and in use........................................................................22 6.1 Introduction ..................................................................................................22 6.2 Wood seasoning ...........................................................................................22 6.3 Saw mills carpentry sheds ............................................................................23 6.4 Plywood and veneers....................................................................................25 6.5 Particle and MDF board ...............................................................................25 6.6 Pulp and paper industry................................................................................25

7 Competitiveness of local producers .....................................................................26 7.1 Introduction ..................................................................................................26 7.2 NCI of wood extraction from natural forest.................................................26

7.2.1 20% Natural Forest Endowments.........................................................26 7.2.2 Ease to cut natural tree .........................................................................27 7.2.3 Logging operations and productivity ...................................................28 7.2.4 Demand Condition ...............................................................................29

7.3 NCI of wood production from planted forests .............................................31 7.3.1 Availability of land area.......................................................................31 7.3.2 Land investment ...................................................................................32 7.3.3 Demand condition ................................................................................33 7.3.4 Managerial competencies and productivity..........................................33

7.4 NCI for the sawnwood industry ...................................................................35 7.5 NCI of panel production...............................................................................36

7.5.1 Related upstream industry and raw material sources ...........................36 7.5.2 Demand condition ................................................................................36


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7.5.3 Productivity, efficiency and innovation ...............................................37 7.6 NCT of Pulp and paper production ..............................................................39

7.6.1 Related upstream industry....................................................................40 7.6.2 Demand condition ................................................................................40 7.6.3 Energy cost...........................................................................................40 7.6.4 Operations ............................................................................................41 7.6.5 Capital investment................................................................................41 7.6.6 Productivity and innovation .................................................................41

8 Industry SWOT analysis ......................................................................................43 8.1 Strengths.......................................................................................................43

8.1.1 Availability of good plantation grounds in river bank erosion purpose 43 8.1.2 Availability of planting material propagation facilities in operation. ..43 8.1.3 Existing craftsmen and skill workers who already has the key competencies. .......................................................................................................44 8.1.4 Institutional arrangements that could back the trade and act facilitative role 44 8.1.5 Existing bamboo cultivation programme with MASL.........................44 8.1.6 As a bio fuel for renewable energy generation ....................................44

8.2 Weaknesses ..................................................................................................45 8.2.1 Duplication of issuing permits for the transportation of planks and furniture. 45 8.2.2 Difficulties in quality improvements due to technical backwardness..45 8.2.3 Non availability of seasoning and preservation complexes in majority of districts except Colombo..................................................................................45 8.2.4 Non availability of technology to rural industries................................45 8.2.5 The high taxes imposed on material, accessories & consumable needed in wood work industry..........................................................................................46 8.2.6 Lack of industry trained people or skilled once have been migrated...46 8.2.7 Legal framework for extraction and transportation of NTFP products46 8.2.8 Meet the imposed environmental laws.................................................46

8.3 Opportunities................................................................................................46 8.3.1 Availability of wood industry waste ....................................................46 8.3.2 Existing producers who willing to use bamboo as raw materials ........46 8.3.3 Huge export market is available for the products. ...............................47 8.3.4 Global concern on CDM projects and Sri Lanka also a partner of the treaty. 47 8.3.5 Activated Carbon (AC) ........................................................................47 8.3.6 Bamboo charcoal as barbeque charcoal ...............................................47

8.4 Threats..........................................................................................................48 8.4.1 Inadequate taxes imposed in handicrafts imported ..............................48 8.4.2 Poor quality imported sawn timber and timber products invaded the local economy over good local products..............................................................48 8.4.3 Increasing population and high pressure on cultivable lands...............48

9 Investment potential of the industries ..................................................................49 9.1 Sawn wood industry .....................................................................................49 9.2 Furniture industry.........................................................................................49 9.3 Plywood industry..........................................................................................50 9.4 MDF and particle board production .............................................................51 9.5 Pulp and Paper Industry ...............................................................................51


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10 Estimated Wood Waste Ratio ..........................................................................52 11 Bamboo ............................................................................................................53

11.1 Introduction ..................................................................................................53 11.2 Bamboo resource in Sri Lanka .....................................................................53 11.3 Traditional bamboo Industry........................................................................56 11.4 Construction industry ...................................................................................57

11.4.1 Bamboo treatment facility at Horana Widata.......................................58 11.5 Handicrafts Industry.....................................................................................58

11.5.1 Imported handicrafts ............................................................................59 11.5.2 Bamboo furniture .................................................................................59 11.5.3 Labour availability ...............................................................................60 11.5.4 Steps to follow to obtain a bamboo extraction and transport...............61

11.6 Bamboo resource and large scale production...............................................61 11.7 River bank conservation...............................................................................62 11.8 Bamboo propagation and field planting.......................................................63

11.8.1 Mahaweli Authority of Sri Lanka (MASL)..........................................63 12 Related institutes and contact information.......................................................71

12.1 Forest department.........................................................................................71 12.2 Department of Wild Life Conservation (DWLC) ........................................71 12.3 Department of National Botanic Gardens of Sri Lanka(DNBG) .................72 12.4 Nillamba Training and Rural development Centre ......................................73 12.5 Industrial Technology Institute (ITI)............................................................75 12.6 Mahaweli Authority of Sri lanka..................................................................76 12.7 Handicrafts makers.......................................................................................76

13 List of companies and producers......................................................................77 13.1 Furniture Manufactures local and export .....................................................77

14 Mikeleets Fabrico (Pvt) Ltd .............................................................................79 15 Inter Ocean Trading (Pvt) Ltd ..........................................................................79

15.1 Timber flooring companies ..........................................................................81 15.2 Timber Treatment facilities..........................................................................81 15.3 Paper manufacturers.....................................................................................82 15.4 MDF and particle board manufacturer .........................................................82

16 Woody raw materials Import and Export.........................................................83 17 References ........................................................................................................85 18 Annex 01: Extraction of HS codes of Sri Lanka..............................................86 19 Annex 02 ..........................................................................................................74


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List Figures Figure 1:Sri Lanka positioned in Indian Ocean. ............................................................2 Figure 2: Zones of Sri Lanka..........................................................................................4 Figure 3-Agro Ecological regions of Sri Lanka .............................................................5 Figure 4: Share of sawn wood supply by different sources 2007 ................................13 Figure 5: Average saw mill operate in suburbs............................................................20 Figure 6: Impregnation plant at furniture exporter.......................................................23 Figure 7: Bandsaw in a modern saw mill.....................................................................24 Figure 8: Furniture made out of bamboo .....................................................................59 Figure 9: Worker engaged in handicrafts industry.......................................................60 Figure 10: River bank conservation .............................................................................63 Figure 11: Invitro propagation flow diagram in EFCD................................................64 Figure 12: Planting area under Agrarian Service Department .....................................66 Figure 13: Mahaweli development project area...........................................................67 Figure 14: Plant propergation and seasoning ...............................................................68 Figure 15: Nursery and the Field planting ...................................................................69 Figure 16: Export and import of forest products of Sri Lanka.....................................83


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List of tables Table 1: Natural forests in Sri Lanka, 1992 (Source: Ministry of Agriculture, Lands and Forestry, Forestry Sector Master Plan(FSMP1995))...............................................6 Table 2: Main alternative timber species used in Sri Lanka ..........................................8 Table 3: Key policy, legislation and institutional changes concerning management of Sri Lanka’s natural forests during the twentieth century .............................................11 Table 4: projection made by FSMP(1994) of demand, production, and trade in wood products, ‘000m3 per year for the 2007........................................................................13 Table 5: Alternative timber species..............................................................................15 Table 6: Suitable timber species for ply wood production...........................................16 Table 7: Projection made by FSMP(1994) of supply of construction and industrial wood ‘000 m3 for the year 2007...................................................................................17 Table 8: Species used as raw material in furniture manufacturing ..............................19 Table 9: Weighting of factors for wood extraction from natural forest .......................30 Table 10: NCI of wood extraction from natural forest of the ......................................30 Table 11: District level land distribution, population and home gardens ....................32 Table 12: Weighting of factors for wood extraction from planted forest ....................34 Table 13: NCI of wood extraction from planted forest in Sri Lanka ...........................34 Table 14: Weighting of factors for sawn wood industry..............................................35 Table 15: NCI of sawn wood industry in Sri Lanka ....................................................35 Table 16: Weightings to estimate the overall competitiveness of the plywood industry......................................................................................................................................37 Table 17: NCI for the plywood industry in Sri Lanka .................................................38 Table 18: Current NCI (2006) Fiber Board Industry..................................................38 Table 19: NCI for the Fibreboard industry in Sri Lanka..............................................39 Table 20: Paper and paper board demand in Sri Lanka from 2004 to 2008 ................40 Table 21: NCI for the Fibreboard industry in Sri Lanka..............................................42 Table 22: NCI for thepulp and paper industry .............................................................42 Table 23: Native and Introduced Bamboo Species in Sri Lanka .................................54 Table 24: Bamboo Species Established in the Botanical Gardens of Sri Lanka..........54 Table 25: Native Bamboo Species and their habitats...................................................55 Table 26: Bamboo species cultivated in Sri Lanka ......................................................56 Table 27: Bamboo species cultivated in Sri Lanka ......................................................56 Table 28: Progress of field planting in 2010................................................................70 Table 29: Glassware presently available in the laboratory ..........................................74 Table 30: Laboratory equipments available in the facility...........................................75 Table 31: Furniture producers and exporters in Sri Lanka...........................................77 Table 32: Companies of wood flooring and parquet....................................................81 Table 33: Companies for timber treatment facilities....................................................81 Table 34: companies for Paper manufacturers.............................................................82 Table 35: Imports and exports of forest products ........................................................84


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Abbreviations

AC -Activated Carbon ARDA -Agricultural Research and Development Assistants BOI -Board Of Investment CBO -Community Base Organization CCI -Ceylon Chamber of Industries CDM -Clean Development Mechanism CEA -Central Environmental Authority CFC -Common Fund Commodities CPI -Corruption Perception Index DC -Desiccated Coconut DNBG -Department of National Botanic Gardens DOCS -Department Of Census and Statistics DS -Divisional Secretariat DWLC -Department of Wild Life Conservation EDB -Export Development Board EFCD -Environment and Forest Conservation Division EIA -Environmental Impact Assessment EIU -Economic Intelligence Unit FAO -Food and Agriculture Organization FD -Forest Department FO -Forest Ordinance FSMP -Forestry Sector Master Plan GHG -Green House Gas GN -Grama Niladhari ICBR -International Credit Information Bureau ICC -Industrial Chamber of Commerce IDB -Industrial Development Board INBAR -International Network for Bamboo and Rattan ITI -Industrial Technology Institute LNBA -Lanka Network for Bamboo and Rattan MASL -Mahaweli Authority of Sri Lanka MDF -Medium Density fibre Board MOIC -Ministry Of Industrial and Commerce NAB -National Apprentices Board NCC -Natioanl Chamber of Commerce NCCSL -National Crafts Council Sri Lanka NCI -National Competitive Index NGO -Non Government Organization NPC -National Paper Company NTFP -Non Timber Forest Products RBP -Riverine Bamboo Project RFO -Regional Forest Officer RPM -Regional Project Manager SLR -Sri Lanka Rupees STC -State Timber Corporation UNIDO -United Nations Industrial Development Organization


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1 Summery

The United Nations Industrial Development Organization (UNIDO) under its global environment facility plans to set up industries using bamboo as raw material. The Objective of the project is to develop a bamboo supply chain and product industry in Sri Lanka leading to reduced global environment impact from GHG emission with a sustainable industry base. The project components include policy framework, bamboo propagation using tissue culture technology, establishment of plantations, plantation operation, Transfer of bamboo processing technology to Sri Lanka and palletizing. Presently Sri Lanka has no bamboo processing industry and development of the industry. Country will require technology transfer from the countries buying of equipments, capacity building in operating and maintaining this equipment and development of a network of local service providers. In this study UNIDO hope to ascertain the opportunities in the existing wood industry to introduce bamboo as a raw material. Some products in the wood industry such as pulp & paper, MDF, panels, fiberboard, parquet, furniture are made out of wooden raw materials and it could be easily replaced by bamboo pulp and fibre. Wood raw material supply is diminishing with shrinking forest resources and not implementation of proposals of forest sector master plan. Furniture industry in Sri Lanka is developing it’s own technology together with introduced modern technology observed uneven distribution of technologies. Sectors such as pulp and paper were operated with obsolete technology, terminated it’s operation in some times back and necessary to reopen them with modern technology and capital investment. Competitiveness of wood industry in Sri Lanka is in moderate position when compared with other countries of Asia Pacific region. Currently bamboo crafts and utensils industry operates based on traditional knowledge in scattered as raw material availability. They have to compete with imported bamboo or non bamboo cheaper goods in the market. Bamboo preservation techniques are using handful of people who produce handicrafts with their home made equipments. Bamboo usage in construction industry limited to temporary scaffoldings in construction those who don’t have modern technology. It is unfeasible planning on existing bamboo resource base unless having an intensive planting programme introduced with public, private and international collaborative endeavors in long run. Most of the resources are scattered all over and not in orderly recorded. There are some exotic species with better gene plasmas and higher growth rate which are already Introduced and cultivated in Sri Lanka. Conventional methods of vegetative propagation cannot cater to the present scale of demand for propagules and the alternative is the use of tissue culture technology. Mass scale plantlets propagation presently on the ground in Sri Lanka with the help of invitro propagation and necessary to identify suitable planting grounds for sustainable production.


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2 Sri Lanka Country Profile

Sri Lanka is an island situated in South Asia, in the Indian Ocean to south of India. Geographical coordinates locate the country more conveniently and those coordinates are 700 N, 8100 (Figure 01).

Figure 1:Sri Lanka positioned in Indian Ocean.

2.1 Overview of the island

Area:

Total: 65,610 sq km land: 64,630 sq km water: 980 sq km

Coastline:

1,340 km

Land boundaries:

0 km

Maritime claims:

Territorial sea: 12 nm Contiguous zone: 24 nm Exclusive economic zone: 200 nm Continental shelf: 200 nm or to the edge of the continental margin

Terrain:

Mostly low, flat to rolling plain; mountains in south-central interior

Elevation extremes:

Lowest point: Indian Ocean 0 m Highest point: Pidurutalagala 2,524 m

Natural resources:

Limestone, graphite, mineral sands, gems, phosphates, clay, hydropower

Land use:

Arable land: 13.96%

India


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Permanent crops: 15.24% Other: 70.8% (2005)

Irrigated land:

7,430 sq km (2003) Total renewable water resources: 50 cu km (1999)

2.2 Environment - current issues:

Deforestation, soil erosion, wildlife populations threatened by poaching and urbanization, coastal degradation from mining activities and increased pollution, freshwater resources being polluted by industrial wastes and sewage runoff, waste disposal, air pollution in Colombo signed, but not ratified: Marine Life Conservation Environment - international agreements: party to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Ozone Layer Protection, Ship Pollution, Wetlands

Geography - note:

Water: 980 sq km Total: 65,610 sq km

2.3 Climate of Sri Lanka

There are three distinct climatic zones in the country, the dry and wet with an intermediate zone in between. About 66% of the island constitutes the dry zone area which consists mainly of flat and undulating land. The wet zone is in the south and southwestern part of the country which consists of coastal plains and very rugged mountainous terrain rising up to an elevation of 2750 m. Intermediate zone cover the area to some extent similar in area to wet zone in between dry and wet zones(Figure 02). The mean monthly temperature of the island ranges from 20°C (in the highlands above 2500 m) to 30°C (in the lowlands). Sri Lanka has bimodal rainfall and there are two rainy seasons South West Monsoon- May to September and North East Monsoon- November to February ranges from 1250 mm to 1850 mm in the dry zone, 1850 mm to 2500 intermediate zone and 2500 mm to 5000 mm in the wet zone. Climate is main determinant of the distribution of natural vegetation. Lowland Rain Forest is the climax vegetation of the south-west west zone, with Montain Rain Forest and Sub-montain forest present at higher altitudes. The intermediate zone of the seasonally dry northern and eastern plains has Moist Mixed Evergreen Forest, which gives way to Dry Mixed Evergreen Forest in the dry zone. The Arid zones of the North-western and south-eastern extremities of the island are covered with Thorn Scrub.


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Figure 2: Zones of Sri Lanka

Nearby three quarters of Sri Lanka lies in what is widely known as the 'Dry Zone', comprising the northern half and the whole of the east of the country. Average annual rainfall in this region is generally between 1,200-1,800 mm. In comparison with many parts of Europe this may not seem unduly dry, but like much of SE India, virtually all of the region's rain falls in the 3 months of the north-east Monsoon between October and December. The rain often comes in relativity short but dramatic bursts. Habarana, for example, located in the Dry Zone between Polonnarywa and Anuradhapura received 1,240 mm (nearly 50") of rain in the 3 days around Christmas in 1975. These rains caused catastrophic floods right across the Dry Zone. From the October to December cyclonic storms often from over the Bay of Bengal, sometimes causing havoc from the southern coast of India northwards to Bangladesh. Sri Lanka is far enough south to miss many of the worst of these, but it occasionally suffers major cyclones. These generally come later in the season in December and January and can cause enormous damage and loss of life.


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2.4 Agro ecological regions

Based on the ecological parameters such as rainfall, vegetation, soils and present land use, Sri Lanka can be divided into three major ago-ecological zones viz. (a) Wet Zone (b) Intermediate Zone and (c) Dry Zone. The sub division of the three major climatic zones into regions is based on the amount and distribution of rainfall, elevation and soils which is the dominant influence. Within the wet and the intermediate zones, a subdivision based on elevation takes into account the temperature limitations for the more important plantation and arable crops that are grown in the country. The low country is demarcated as land below 300 m and the mid country as land between 300-900 m and up country as land above 900 m. The differentiation of the wet zone into its distinctive agro-ecological regions is governed primarily by rainfall and elevation. In the dry zone, on the other hand, it is the nature of soil that primarily determines the identity of the individual agro-ecological regions. In the intermediate zone, it is observed that rainfall and elevation as well as soil play an equally important role. The demarcation of the island into twenty-four distinct agro-ecological regions is shown in the Figure 09 with four additional combined regions, each showing rainfall characteristics of two regions (Survey Department 1988).

Figure 3-Agro Ecological regions of Sri Lanka


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3 Forest sector in Sri Lanka

3.1 History

Forestry in Sri Lanka mainly built up on strong tradition in nature conservation which dates back to the introduction of Buddhism in 246BC. That strong tradition changed with foreign invasions. During Portuguese colonial era the clearing of forest has no record. In Dutch era exploitation of valuable timber in natural forests was amplified and shipped to their country. Subsequently the British era further expanded extraction of tropical hard wood and shipped to United Kindom for railway construction. Sri Lanka has a land area of about 6.5 million ha. Its closed canopy forest cover has dwindled rapidly from about 84 percent in 1881, to 44 percent in 1956 and subsequently to 27 percent in 1983. According to the Forest Cover Map of Sri Lanka prepared by the Forest Department(FD) in 1992, Sri Lanka’s total natural forest cover, including sparse forests, was around 2.0 million ha (30.9 percent of the land area). Closed canopy natural forest cover was 1.5 million ha, or 23.9 percent of Sri Lanka’s total land area . This suggests that the average rate of deforestation during the past few decades, both planned and unplanned, had been around 42, 000 ha per year. Per capita forestland declined from 0.32 ha in 1956 to 0.09 ha in 1992 (Table 01). The decline in forest cover is primarily due to rapid population growth and resulting land shortages and poverty. Agricultural production has increased mainly by converting natural forests to farmland. Nearly 809,000 ha of natural forests have been lost to agricultural and residential use since 1948. The Mahaweli Development Project alone replaced 243,000 ha of forests.

Forest type Total area (ha) Total land area (percent)

Closed canopy

Montane 3 108 0.05

Sub-montane 68 616 1.04

Lowland rain 141 506 2.14

Moist monsoon 243 886 3.69

Dry monsoon 1 090 981 16.49

Riverine 22 435 0.34

Mangrove 8 688 0.13

Sub-total 1 579 220 23.88

Open canopy

Sparse 464 076 7.01

Total 2 043 296 30.89

Table 1: Natural forests in Sri Lanka, 1992 (Source: Ministry of Agriculture, Lands and Forestry,

Forestry Sector Master Plan(FSMP1995))


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Documentation of forest conservation was started in Dutch era by the Governor Coranelius John Simon. Later the Forest Ordinance (FO) was established to control the forest clearing in 1855. Past records said that natural forest area in the country was 84% in 1881. FD was established in 1877. The 1989 study concluded that commercial and political pressures had determined logging practices in Sri Lanka, resulting in severe degradation of the growing stock in many areas. The report also noted that deforestation was a serious threat to the conservation of forest biodiversity, endemism, and watershed protection in Sri Lanka. In response to the study’s recommendations, the FD designated 13 forests in the wet zone (totaling 24 000 ha) as conservation areas. This was roughly 50 percent of the forests within the zone that had been marked for exploitation under the five-year investment program of the FMP. The Government also imposed a complete logging ban in all natural forests in 1990 following recommendations of the Conservation Review Committee. This ban is still in place, and there is strong public support to maintain the ban until the depleted forests are rejuvenated. The goals of the logging ban are to:

• prevent further degradation and loss of natural forest cover;

• rehabilitate forests that have been heavily degraded;

• protect and maintain biodiversity;

• maintain environmental and hydrological functions of forests; and

• preserve recreational, aesthetic and cultural values. Since almost all the natural forests are State-owned, the institutions involved in implementing the logging ban are limited to the FD and the STC, operated under the Ministry of Lands, Irrigation and Mahaweli Development. The National Environmental Regulations control timber harvests on areas exceeding 5 ha and prevent the conversion of forests exceeding 1 ha to non-forest uses. The main purpose of these regulations is to ensure environmental protection in various development activities. Although the environmental regulations are not directly relevant to the implementation of the logging ban, logging operations in natural forests and forest plantations require an EIA. The logging ban in natural forests is still in place except along the roadsides in the north where forests can be logged or cleared for security purposes. Permission to clear natural forests has also been granted for development projects subject to the National Environmental Regulations. The FD has a firm commitment to enforce the logging ban. However, illegal cutting in natural forests still occurs on a small scale. The threat of illegal cutting is much greater in forest plantations than in natural forests. The FD had recorded an average of 670 forest offenses per year for illegal cutting in natural forests (about 1 000 cases from plantations) from 1991 to 1995. The volume of timber involved


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in these illegal cuttings was about 1 130 m3 per year, valued at around US$ 80 000 (SL Rs 5.2 million).

3.2 Plantation forestry in Sri Lanka

The importance of the forest cover in the aspect of it’s contribution to the economy was clearly identified. Depletion of forest cover continues in the future even with a slower rate due to high demand for timber, non timber products and the land hunger for settlements and agriculture with the increasing population. The expanding population base and economic growth will increase the demand for round wood and poles from about 2 million m3 in 1995 to 2.7 million m3 projected demand in 2020. During the same period, the need for biomass energy will increase from 9.7 million tones to 9.7 million tones. At the same time, the closed canopy natural forest cover is projected decline to about 17% in 2020. In order to address the timber and fuel-wood demand in the country, forest plantations were introduced as the alternatives. Forest plantations in Sri Lanka have mainly been established using exotic species due to their faster growth rates over the indigenous species. Although the history of introducing exotic timber species goes back to 1870 s, most of the planting has taken place since the 1050’s. The idea of exercise was to have an alternative timber resource to protect the existing natural forest cover and and to rehabilitate the environmentally damaged areas within a short period of time. At present the most favorable species for the plantation forestry are teak, eucalyptus, pines, Acacias, Albizia, Margosa, Alastonia, and mahogany. Total forest plantations established by FD when 2007 was 96250 and this figure in 1999 was 79940 ha. Updated information in 2007 as shown in Table 2. Ministry of Plantations Industries involved plantation programes and some 21 companies have established 16,463 ha with various investment programes.

Timber species Extent

Conifers 15,922.8

Eucalyptus(Up country) 9,338

Eucalyptus(Dry zone) 15,008

Teak 30,777

Mahogany 5,235

Dipterocaapus 72

Albizzia 405

Alastonia 390

Acacia 8830

Margosa 1,040

Kaya 293

Jak 90

Indigenous 7942

Total 96,250 Table 2: Main alternative timber species used in Sri Lanka


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3.3 Forest products

Mainly timber from forestry sector has contributed economic development of the country especially after the independence in 1948, by meeting the needs of large-scale housing and construction programmes. Although present high demand for many development progammes cannot be cater by the shrinking forest resources. The natural forest cover of Sri Lanka has been depleted and timber supplies from these sources are becoming limited. Some of the forest wood products, other than sawn wood, that contribute to the economic importance of forest include:

• Electrical transmission poles

• Telegraph poles

• Fuel wood

• Charcoal

• Fence posts

• Plywood

• Pulpwood

• Cane furniture

• Bamboo

• Curious

• Toys

3.4 Legal aspects of forestry and timber

Key policy, legislation and institutional changes concerning the management of forest resources are summarized in Table 03. This refers with the changes happen in the industry with the time.

Year Policy/legislation

/institutional changes

(Authority)

Provisions for forest management

1907 Forest Ordinance(FO) No. 16 (FD)

Protection of forests and their products within reserved forests and village forests, primarily to control exploration of timber.

Amended several times from 1912 to 1995

Removed the requirement for import and export licenses. Introduced a provision for a reward fund and to eject encroachers Increased fines.

1995 FO (FD) Incorporated a new category of forest reserves called conservation forests.

1929 First authoritative Forest Policy

Export of timber and forest products, self-sufficiency in timber and fuelwood. Preservation of indigenous fauna and flora.


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1938 Amended Clearing of forests prohibited above 5 000 ft (1 500m).

1937 Fauna and Flora Protection Ordinance No. 2 (FD)

Protection of wildlife in national reserves and sanctuaries and outside protected areas.

1964 Amendment Act No. 44 (DWLC)

Nature reserves and jungle corridors incorporated in national reserves.


Intermediate zone, envisaged as a buffer zone for controlled hunting, was removed from the Ordinance.


Refuges, marine reserves, and buffer zones incorporated with national reserves.

1948 Establishment of Department of Wildlife Conservation

Administration of Fauna and Flora Protection Ordinance. Management of protected areas declared under the Fauna and Flora Protection Ordinance.

1953 National Forest Policy Emphasis on conserving forests, increasing supplies of small-dimension wood, maintaining sustained timber yields.

1980 Amended Involve local communities in forestry development through social forestry.

1995 Reformulated (Approved by the Government)

Conserve forests, increase tree cover and productivity of forests and enhance the contribution of forestry to the welfare of the rural population and strengthen national economy.

1968 Establishment of State Timber Corporation

State organization for harvesting and marketing of timber from State-owned natural forests and forest plantations.

1970 UNESCO Man and Biosphere Program

Establishment of arboreta.

1982 Mahaweli Environment Project

Network of protected areas established to mitigate the impact of the Mahaweli Development Project on wildlife and to protect catchment areas.

1986 Forestry Master Plan A long-term framework for development of the forestry sector.

1995 Forestry Sector Master Plan(approved by the Government)

A comprehensive long-term framework for sustainable development of the forestry sector.

1988 National Heritage and Wildness Areas Act No. 3 (FD)

Protection of State land with unique ecosystems, genetic resources, or outstanding natural features.


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1990 National Policy for Wildlife Conservation (approved by the

Government)

Maintenance of ecological processes and preservation of genetic diversity.

1990 Forestry Sector Development Project - Environmental Management component

Logging of natural forests banned. Accelerated and National Conservation Reviews carried out (assessment of conservation values of natural forests).

1993 National Environmental Regulations No. 1 (Under the National Environmental Act) Central Environment Authority (CEA)

Requirement of Environmental Impact Assessment (EIA) for extraction of timber from forests and forest plantations exceeding 5 ha and conversion of forests into non-forest uses exceeding 1 ha.

1997 Five Year Implementation Program of the FSMP

Short- and

Table 3: Key policy, legislation and institutional changes concerning management of Sri Lanka’s

natural forests during the twentieth century


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4 RAW MATERIALS SUPPLY LOCAL AND IMPORTED

Wood and wood based industry comprises of different main branches. Competency always fluctuates in each branch with time all other externalities and such five branches as indicated below.

• Saw milling

• Preservation and Seasoning

• Manufacturing of furniture, Wooden components, Wooden toys, Wooden flooring, Wooden Ceiling, doors and windows, wall paneling

• Manufacturing of plywood and wood based panels such as MDF.

• Bamboo and rattan products Also wood industry could classify based on different products and operations from; 1. Sawmilling 2. Sawn wood processing industries

(a). Furniture (b). Packaging (c). Other wood products (d). Timber seasoning and preservation

3. Wood-based panels industries (a). Plywood (b) Fiberboard (c). Particle board

4. Pulp and paper industries 5. Wood and wood based industries

4.1 Introduction

Timber is one of the most important raw materials used by man even before the Bronze Age. In contrast to other materials, timber is known as a living material, and substitution of timber with any other commodity is not an easy proposition. As the timber species originating from natural forests have become limited in Sri Lanka, there is a growing concern of using timber species that originate from sources other than natural forests (sustainable sources) for different purposes.

4.2 Sawn wood

Present raw material supply for sawn wood industry is from different sources such as State forest plantations, Home gardens, Industrial plantations and balance demand by imports. Home gardens play majour role in sawn wood industry. Sow log supply from home garden represent more than 40 % percent of the annual national demand. Among industrial plantations Rubber and Coconut plantations are responsible for more than 30% of total sow log supply. Forest plantations share is comparatively low as 8% although it should be more than that. Tea estates cover 5 percent of the sawn wood demand in the country while imported sawn timber represents share of 6.7 percent “See table 4 and Figure 4).


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Forestry Sector Master Plan (FSMP) 1996 emphasized that the reverse economic growth persist in the country when the document is being published is create the balance of wood requirement with minimum imports and the sawn wood supply was almost self sufficient. With a growing economy present wood supply is not adequate to meet the demand and exert pressure to the natural forests and home gardens. Hence home garden sector has now fully utilized. Also As planned and forecasted by FSMP in 1996 plantation forestry has not performed to expected level. The annual demand for timber is around 1.975 million cubic meters in 2008. So that, contribution to wood demand from Sri Lankan forest industry is projected to grow from 1.320 million m3 in 1995 to 1.864 million m3 in 2020 by the FSMP. But the demand for timber in 2008 has been already exceeded the demand in 2020 predicted by FSMP. As the supply of timber from natural forests diminishing and the growing interest was directed towards the other resources forests such as forest plantations and agroforestry lands.

Sawn timber supply

Home garden

Rubber

Coconut

Forest

plantation

Tea

Other

Unsustainable

Imported

Figure 4: Share of sawn wood supply by different sources 2007

The STC is the sole authority permitted to harvest in state forests which provide less than 8% of the national demand. It is important to realise that 50% of the demand is met from the home gardens and rubber and coconut plantations. The estimated share of wood supply in 2007 can be given as follows:

Supply source Volume (‘000

m3/year)

% of total demand in

2007

Home garden 612.4 40.7

Rubber plantation 266 17.7

Coconut plantation 210 13.99

Forest plantation (by STC) 122 8.1

Tea estates 75.9 5

Other sources 70 4.6

Unsustainable supply 43 2.8

Imported sawn wood 101 6.7

Total demand 1501 Table 4: projection made by FSMP(1994) of demand, production, and trade in wood products,

‘000m3 per year for the 2007


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These assumptions made by the FSMP using following basic information:

• One ha. of home-garden produces 0.95 m3 of sawlogs, and 0.5 m3 of poles per hectare per year

• One ha. of Rubber plantation provides 0.24 m3 logs, 65 m3 sawlogs, and 127 m3 fuelwood

• One hectare of Coconut plantation yields 49.4 m3 sawlogs, 51.6 m3 fuelwood, and 6.862 tonne other biomass

• One hectare of trees on Teas estate give 0.48 M3 of poles and 0.40 m3 wood

• One hectare of trees on Settlements Teas estate give 0.48 M3 of poles and 0.10 m3 wood

• One hectare of trees on Other areas give 0.48 M3 of poles and 0.69 m3 wood

• Trees from one kilometer along roadside plantation may provide about 0.69 M3 of saw logs.

The main imports are comprised of species like Kempas (Koompasia malaccensis), Tualang (Koompasia exelsa), Keruing (Dipterocarpus spp) and redwoods (mixture of red coloured woods of many species) from Malaysia through Singapore trade houses. These imports are mostly of the lower grades and are untreated under-treated or just fumigated. A value estimates of all this, the value of log and sawn timber, will run into billions of rupees every year. Recognizing the economic value of forests, the country continues its forestation programmes. Recent statistics show that more than 70% of locally commercially acceptable timber are now potentially available from sources other than natural forests such as forest plantations, home gardens and Rubber and coconut lands. These timbers, originating from sources other than natural forests are termed “Alternative species”. If future timber requirement can be met by theses species, then the remaining natural forests can be conserved for protection of soil, water and biodiversity (See table 05).

Common name Botanical name

Albizia Paraserianthes falcataria

Lunumidella Melia dubia

Kadju Anacardium occidentale

Toona Cedrella toona

Cypress Cypressus macrocarpa

Rubber Hevea brasiliensis

Pinus species Pinus caribia, P. pilularis, P. insularis

Mango Magifera indica

Ginisapu Michelia champaka

Sabukku Gravillea robusta

Havarinuga Alstonia macrophylla


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Gansooriya Thespecia populnea

Eucaliptus species E. grandis, E. pilularis, E. robusta,

E. microcorys, E. citradora, E. globulas

High rated popular alternative species

Teak Tectona grandis

Mahogany Swietenia macrophylla

Jak Artocarpus heterophyllus Table 5: Alternative timber species

4.3 Plywood and particle board

In 1993 the wood based panel industries included 12 small plywood mills producing plywood from rubber wood for tea chests, doors and construction purposes. Biggest plywood company in Sri Lanka is Ginthota plywood originally started by the government in 1941 and later reopened under private management in 1994. The factory was established with the aims at processing 2000 m3 of important logs per month. Capacity of other plywood factories in operation was 125-1300 m3per year with an average of 400m3. In addition, there is a small particleboard mill using straw as a raw material. The capacity of the particleboard is about 8000 m3/year but it is faced technical issues and closed down. Required woody raw materials obtained local market specially in less than 30 km radius and loads of them bring to the factory and purchase them at the factory on volume basis. Consumption of plywood in 1993 amounted to about 28,000 m3, of which about 5000 (18%) were produced domestically and the other 23,000 m3 imported. According to FSMP the projection says the total plywood consumption in 2007 as 41,300 m3 while locally produce 5,000 m3 that amount is 13% of the total consumption. Local production capacity is planned increased according to the projection. But local plywood production capacity reversed due to raw material supply and local economic condition of the country. Usually plywood industry depends on the raw material supplied locally other than imported. Even though Ginthota plywood established to operate with logs imported but they managed to obtain raw materials locally. Main veneer logs purchased from suppliers are Rubber and pines. Other than those species following species also is used (See table 06)


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Table 6: Suitable timber species for ply wood production

Veneers extracted from pines are mainly used preparation of face and the back of plywood and rubber used for core. Good quality veneers extract from pines and rubber. Quality depends on log’s diameter, defects on logs and any other die backs. Usually diameter of rubber logs are restricted due to those comes from plantations of improved clones. Those varieties are not grown as bigger as earlier planted rubber from seeds. Improved varieties of rubber produce reduced biomass in logs, high yields as latex. In year round production when raw materials supply is in sort plies are imported to keep production volume unchanged specially in “Ginthota Plywood”. Imported plies are used in the face and back while core complied with local raw materials. Producers always concern quality of final product with good recovery ratio. Bonding agents such as glue is the second important materials in plywood production in the local industries are imported. For the production of glue, Urea and Formaldehydrate and KmNO4 are imported from India. Some companies import from different countries. Now domestic raw material supply is in a threat as good quality logs gradually declining as a result of over exploitation of home gardens and plantations. Proposed plantation establishment programme by FSMP has not followed fully and raw material supply has shrieked while demand side escalated. The availability of imported plywood logs will become increasingly restricted in the world because export bans and levies. Due to poor raw material availability new industrialists not ready to invest large amount of money for the industry.

4.4 Pulp and paper

Consumption in 1993 was about 130,000 t of which 28,000 t was domestically produced and 102,000 ton imported. The average annual growth in paper consumption in 1985-1993 was about 6.8%. Projected demand of paper is about 241,400 t in 20007 and local production is around 29 t and imported quantity is around 212,400 t.

Common name Botanical Name

Albizia Paraserianthes falcataria

Lunumidella Melia dubia

Toona Cedrella toona

Rubber Hevea brasiliensis

Mango Magifera indica

Ginisapu Michelia champaka

Sabukku Gravillea robusta

Havarinuga Alstonia macrophylla

Gansooriya Thespecia populnea


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There are two major pulp and paper mills were established, owned by the Parastatal National Paper Company (NPC), in Valachchenai and Embilipitiya. The combined total capacity of the paper mills is 37,500t/year. The Valachchenai mill has one prepare machine, one board machine, a straw pulp line and a waste paper treatment plant. But the pulp mill has been closed. The capacity of the pulp mill was 25 t/day. The capacity of the paper machine is 10,500t/year and the board machine12,000 t/year. The pulp and paper mill in Embilipitiya has a rice straw pulp mill with a capacity of 38t/day and paper matching with a capacity of 15,000 t/year. Both of the pulp mills were designed to use non-wood fibre as their main raw material, the rest being waste paper and imported wood pulp. At full capacity the total rice straw requirements were 50,000t/year. The NPC has not been able to collect this quantity, which has caused production problems. Some wood is also used in the furnish. The poor supply of rice straw is one of the main reasons for changing the pulp furnish. Rice straw is also being phased out because of the effluent problem and the enforcement of more strong environmental rules and regulations, high production costs and worn out machinery. Also, the quantity of rice straw pulp is low, especially with respect to strength properties and brightness.

4.5 Paper making fiber

Total fibre consumption in 1993 was about 31,000 t. Waste paper was the main source of fibre, accounting for about 58% (18,000 t) of total fibre consumption. The share of domestically produced straw pulp was about 7% (2,000t), wood pulp 6%(1,800t) and imported pulp about 24%(7,400 t). The share of broke (waste paper from the production process) was 6%. The relative share of domestically produced fibre in total fibre consumption in 1993 was 61% (18,900t) and imports 39% (12,100 t).

Timber product Demand Production Import/Unsustainable supply

Industrial wood 1501.3 1466.6 34.7

Poles and posts 440.3 407.8 32.5

Sawn wood 713.3 606.3 108.9

Plywood 41.3 5 37.5

Other wood panels 11.1 0 11.1

Fibre and recycled paper 30 18.4 11.6

paper 241.4 29 212.4

Table 7: Projection made by FSMP(1994) of supply of construction and industrial wood ‘000 m

3 for

the year 2007.

4.6 Furniture

In Sri Lanka most developed part in wood industry is manufacturing furniture and components of furniture. From early history workmanship is very high in Sri Lanka, evidenced by wooden monuments left and conserved.


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Impregnation of raw materials and manufacturing various wooden items those utilized in houses and offices are very famous in Sri Lanka. There is significant number of furniture manufacturing companies, small and medium level carpentry shops and individuals are partners of the industry. Export related firms are registered in Sri Lanka with FD. And other producers are register with regional forest offices. According to FSMP it is estimated that there are 9000 such furniture manufacturing units and employed 28,000 people. The 1983 industrial census by the Department Of Census and Statistics (DOCS) listed about 8800 establishments in the woodworking sector, of which some 7700 were actively engaged in furniture manufacturing. Many furniture manufacturers are small, employing on average less than five workers and using less than 1 m3/year of sawnwood. According to administrative report 2009 of FD the number of registered mechanized carpentry shops are 4267, carpentry sheds 1187 and furniture shops 3507, totally 8961. The manufacture of various wooden items such as crafts, toys, carvings, sport goods, house decorations, and household implements are come under this category. Furniture industry is the most important wood based export industry in Sri Lanka. Following sources are supply raw materials for the industry

• Home garden

• Rubber plantation

• Coconut plantation

• Forest plantations

• Tea estates

• Natural forests Timber extraction from natural forests are not sustainable and illegal. Village based furniture manufacturing industry extract timber from nearby forests and such furniture are not coming to the open market and construction would be done only on request. Presently furniture manufacturing facilities based on rubber wood is famous in furniture industry. Wood seasoning facilities available for treating law grade timber in furniture manufacturing and such professional treatment facilities available on fixed rates. Timber extracted from coconut plantations can consider as good raw material for furniture that need not seasoning. Following timber species supply main raw materials for furniture manufacturing(Table 08).

Common names Botanical Name

Supper Luxury class

Teak Tectona grandis

Ebony Diospyros ebenum

Nedun Pericopsis mooniana

Calamander Diospyros quaesita

Luxury Class

Satin Chloroxylon swietenia

Mahogany Swietenia Spp.

Jak Artocarpus heterophyllus


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Special Class Upper

Margosa Azadirachta indica

Suriyamara, Albizia odoratissima

Special Class

Tamarind (Hard Wood), Tamarindus indica

Kumbuk Terminalia arjuna

Table 8: Species used as raw material in furniture manufacturing

Furniture production continues to cater the domestic market major and export market. Few large furniture manufacturing companies export their products to USA, UK, Australia, Japan & several other countries worldwide based on wood supplies from domestic sources. Recent trends is increasingly depend on substitute materials for wood such as MDF and particle boards which is easy to obtain and less legal matters and workability with less waste.

4.7 Parquet

Wood flooring including parquet is a small sector in wood industry in Sri Lanka. A handful of companies are making parquet locally with locally available raw materials. Timber used in parquet is from super luxury to luxury class and materials are obtained locally or producers keep their own plantations such as plantation companies. In the same time some companies import wood substituted parquet with laminated face and those are cheaper in the market and many of local producers are import them to diversify the product range. Major parquet Export Company registered under BOI was Parquet Lanka has stopped production due to raw material availability issues. Some plantation companies which are having lands under 99 year leases are in the business as small units as a strategy in diversification to minimize costs. Degraded lands within their plantation converted to timber plantations and timber utilizes for the business. Occasional excess labour utilizes economically in plantation in this manner in resources optimization. Among 23 plantation companies operating in the country some are practice the said mechanism. Some companies have come to the market with wood flooring with parquet and doing fairly well in export processing with international partnership. Elpitiya plantation under Aitken Spence operated under the name Elpitiya lifestyles is such company merged with US partnership. In Sri Lanka Bamboo parquet producing facility is not known and endeavors to uplift the industry still not yield dividends in significant level. Products out of bamboo other than handicrafts not much seen in Sri Lanka and are little strange even in the industry people even as a raw material to exiting products.


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5 QUALITY ISSUES

5.1 Introduction

Quality on finished products in Sri Lanka based mainly depends on the raw material and secondly technologies available for. Also the quality concerns of producers as a whole depend on the market they are targeted. Products for export oriented are in superior quality and the technologies, human resources and raw materials are in good quality. Distribution of available technology and capital investment related to such technologies are main barriers for the small scale producers and those who are operating far away from capital city of Colombo.

5.2 Sawn wood

In sawn wood industry there are two main concerns such as: available raw materials local and imported and available machineries in saw mills. Receiving raw materials are increasingly poor as many home gardens are over exploited since home garden is the major contributor to the industry. Majority of logs received for saw mills are from less mature trees even them represents super luxury or luxury class. But logs received by STC are in superior quality as they extracted in systematically from forest plantations. Imported wood seems to be good but there are claims that such timber importers are not properly investigated the classification and the class specified of timber which they import. Sometimes imported timber is specified as under the class “other”. Many saw mills are still working with outdated circular saws and saw doctoring is not properly done. Due to improper arrangement of sawmills, and bad handling results heavy waste and degrade the quality of received logs within the mill. Air cracks, defects, knots sap wood are some visible quality problems.

Figure 5: Average saw mill operate in suburbs


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5.3 Furniture

Some carpentry sheds those emerged after new machineries came to use, have limited access to quality raw materials. Produced furniture with law quality raw materials or low grade timber without seasoning is defective in the open market. Some carpentry shed owners they have limited history in wood industry and technologies are the causes. Finished products of them to the market become defective as shrinkages of partly dried materials and deformed. But in the market this kind of defects are not much common and customers get trapped for these commodities are sometimes low income class individuals. Sap wood of luxury and super luxury class timber is not utilized in wood industry in the past as they have enough supply from various sources. Currently wood has increasingly become scarce resource sap wood also been utilized in the wood working industry. When it is not well seasoned well furniture affect insect attacks and degrade the quality. These things sometimes can be observed in the category mentioned in above paragraph. But presently in Sri Lanka with modern seasoning facilities low grade timber become very famous and produce high quality furniture for export (North America, South America, Eastern, Europe, Southeast Asia, Africa, Mid East, Eastern Asia, Western Europe)and to the local market. Many of large scale furniture producers with access to technology and capital are doing well locally and internationally.

5.4 Plywood and veneers

Non availability of good and large veneer logs are emerging issue in plywood industry. Over exploitation of home gardens and keen competition to rubber wood reduced the incoming quality logs. Veneers extracted from poor quality logs are poor in quality. Hence plywood production needs more raw materials to be imported to maintain the quality. When heating plywood after gluing some heat differences and non uniform glue application results defects in plywood. Thickness variation, size variation, outer layer removal and air pockets left in between layers sheet. Some of the companies manage the final product in perfect condition with their quality control mechanism.

5.5 Pulp and paper industry

When NPC was in operation the paper product was low in quality in respect to strength properties and brightness. Other main quality problems were thickness, colour and basis weight variations, uneven moisture content and poor surface finish. These quality issues raised due to technology used and poor quality raw materials and also machineries outdated and worn out. Those issues could not be overcome with low level of investment sources by the government and investments are necessary to reopen the closed entities. The situation raised in northern area also affected the recovery of the Walachchenai paper mill again. Ther are two factories available in Sri Lanka Walachchenai, Embilipitiya. Other paper producers are in Sri Lanka has based on the waste paper processing. They managed the quality as well as standard with investments of modern technology and machinery.


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6 TECHNOLOGIES AVAILABLE AND IN USE

6.1 Introduction

Wood industry as a whole the technology available is average condition. The issue remains on the capital investment capacity other than availability of the technology. Many large scale manufacturers of the industry uses modern technology: i.e. Merbok Lanka MDF operating on latest available technology and 90% of products are exported. DR Manufacturing (DAMRO) also same. They have their factories and sales outlets even overseas. Some sub sectors of wood industry are operating poor technology and some closed down due to technological matters: i.e. Paper industry.

6.2 Wood seasoning

Sri Lankan traditional wood industry experienced craftsmen use to work with luxury and super luxury class wood for furniture and other products. This kind of wood not necessarily be seasoned before production. Only sun drying were practiced and never chemical was used in village based wood working industries and they have no facilities available. Existing wood materials are necessary to treat and if failure to do so finished products are defective. Utilizing rubber wood in production of high quality furniture and other products is current trend in the wood industry with facilities introduced and advance wood seasoning techniques. Wood seasoning such as pressurized boron treatment and kiln drying facilities are not available in all part of the country. Raw materials are commonly supplied from such localities even the technology not available. Such facilities concentrated in Colombo district and western province (See Figure 6). Even though facilities are available seasoning has not been properly done in some establishments due to defective machineries or due to some other reasons. Some small scale producers get done impregnation and kiln drying from outside service providers. These defects are not common in export oriented productions and rarely happen in the local market. Many exporters have their own wood seasoning facilities and reached their maximum in preservation. Technically the Boron treatment system which originated in this country is lagging behind developments elsewhere, and they tend to give uneven and sometimes inadequate protection. Work safety has been neglected, especially as regards the danger from lacquer fumes and dust in furniture finishing and handicraft production. Similarly environment and safety measures in the impregnation plants are inadequate. To use law quality timber in furniture production in some localities use normal boron dipping method and sun drying due to non availability of processing facilities. The success rate is not so bad if the conditions applied are carefully observed. Other technique is application of wood preservatives on finished faces of produced goods before sealer application and it is not much acceptable method as long lasting wood preservation method.


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Figure 6: Impregnation plant at furniture exporter

6.3 Saw mills carpentry sheds

Some mills are in general small and labour intensive, and have old and mostly worn-out machinery, as well as poor layout, saw doctoring and feeding systems. Many head saws and almost all resaws are of the circular type. In small sawmills there is usually only a circular saw. Many of saw mills has not been done any renovations for many years. While some companies involved in wood processing industry targeted export processing have brought advanced machineries to reduce wastage in saw milling. They have horizontal band saw, vertical band saw, frame saw, rip saw, panal saw eight cutter and ten cuter machine, circular saw and many more machines that help in furniture and other finished goods production(See Figure 07). Saw mills operating as single owner businesses even in rural area have advanced machineries while their operations are quite outdated resulting reduced productivity. Even far rural areas, but electrified have multi-duty carpentry machines and skilled craftsmen are working on it making quality furniture.


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Figure 7: Bandsaw in a modern saw mill


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6.4 Plywood and veneers

Some few plywood factories in Sri Lanka are very small and labour intensive, having mainly elementary self-made or second hand equipment. Some are cross cut logs manually, no conveyers are used, some presses are poorly fabricated with low and unevenly distributed temperature. The low technical level of the plywood mills results in low recovery and high wastage, low productivity of equipment and labour. Some plywood companies are operating with manual labour new machineries have been installed and upgrade the production process. But low level of automation of the process still the productivity remains low compared with other countries. Some plywood making companies stopped their production due to various issues related raw material and capital investment need to automation to acquire required productivity.

6.5 Particle and MDF board

Major two companies are in the operation in Sri Lanka. Famous Damro is the main company which is producing particle boards in which utilize 24, 000 m3 of raw materials purchased. Many waste wood are utilized them for manufacturing. Modern technology has been used and production process is fully automated. All the produced particle boards are used their self consumption of furniture production. Other one called Merbok Lanka MDF company which is Malaysian investment is the leading MDF producer in Sri Lanka. The modern technology is utilizing in the production process other than preparation of soft wood to the chipper and packaging. 90% of the production exported and balance sale in local market.

6.6 Pulp and paper industry

Although the technology is sound in principle, it was getting outdated especially at the Valachchenai mill. No major investments were made since the mills were started in 1955 and 1978, and as a result the machinery and the equipments worn out, and productivity is poor. In this factory labour productivity is very low.


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7 COMPETITIVENESS OF LOCAL PRODUCERS

7.1 Introduction

The competitiveness of local producers has been compiled based on the document prepared by the FAO called National Competitiveness Index(NCI) of the Forest Products Industry in the Asia Pacific region by Daisuke Sasatani in 2009. Assessment criteria has been taken as same proposed by the report and local situation discussed under headings and marking system and given marks used as it is in the report. Any industry competitiveness determined on four factors that proposed by porter are (1) factor conditions, (2) demand conditions, (3) related and supporting industries, and (4) firm strategy, structure and rivalry. Basic factors include natural resources, climate, location, and demographics. Advanced factors include communications infrastructure, sophisticated skills and research facilities, advanced factors are more important than basic endowment factors in terms of national competitiveness. Advanced factors are accumulated through investment by government, individuals and firms. Competitiveness of industry is an overall result of all factors such as competitiveness of the upstream sector, production of the downstream sector, natural forest, land availability, water availability, country institutions, labor cost, energy cost, infrastructure, efficiencies, technology, innovativeness, capital investment, managerial competencies and current productivity.

7.2 NCI of wood extraction from natural forest

7.2.1 20% Natural Forest Endowments

Log (Natural Forest Area)

Natural forest area is presently about 22% of the total land area of the country and the resource also diminishing due to various development activities taken by the government. Hence presently land clearing thoroughly controlled to protect the existing cover. But illegal felling and clearing forests are in operation in small scale in different locations.

Competitiveness is the firm’s ability to provide products as or more effectively and efficiently compared to their competitors and to stay in business to have the capacity to exploit existing market opportunities and generate new markets. So, competitive firms or individuals can achieve some desired results in terms of profit, price, return, or quality of products.


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Log (Natural Forest Area Per Capita)

Natural forest area per capita, is very low compared with other nations in the region and it is less than one Ha/Capita.

Overall Forest Stock

Overall forest stock is remarkably low due to various reasons such as illegal felling and less growing stock reported compared with countries in the region and possesses the lowest position in lesser growing stock. Reported growing stock considering total forests is 25 (Cubic Meters / hectare) while annual growing stock per hectare is minus figure means diminishing the resource of overall forest stock in the forest area.

Accessible Natural Forest Area

Accessibility to natural forests, accesses to raw materials from natural forests are minimal in Sri Lanka as the government imposed a complete logging ban in all natural forests in 1990. Government sector contribute to the industry only through government forest plantations. Even accessibility is minimal to natural resources, availability of raw material is average as other sectors including imports are provide requirement. Imports are usually unsustainable and could not be guarantee about the quality especially on sawn timber.

7.2.2 Ease to cut natural tree

This determines by following three factors:

Plantation-Natural Ratio

The final component of the ease to cut trees from natural forest is the ratio of planted forests and natural forests in a nation. Total natural forest area in 1999 is 1,942,219 ha and total state owned plantation forests are 96, 250 ha. The plantation forestry share is 5% to the natural forests and it is a very low figure compared with other nations. While the share of wood supply to the demand by forest plantations including private forest plantations is 11% (STC supply 8%). Other sources of wood supply as follows:

• Home gardens 40.7%

• Rubber plantations 17.7%

• Coconut plantations 13.99%

• Tea estates 5 %

• Other sources 4.6%

• Imported sawn wood 6.7%


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Hence production forest area compared with natural forests is high according to above figures. It is clear even dedicated forest plantations are less the competitiveness in the aspect of share of production forest is higher.

Corruption Perception Index

When logging operations done illegally in the short term the cost of logging is reduced. In the long run it is harmful to the industry as the forest resources depleted due wrong operations. In this concern Sri Lanka holds intermediate position in the Asian region and has endeavors to overcome fully with rules and regulations. Country in policy level understood the importance of the forest services other than commercial production usually sees. Government has taken national level policy decisions and implementation mechanisms. Application in the grass shoot level is still difficult as people do not understand the importance of the service part of the forests. Hence country place intermediate level of Corruption Perception Index(CPI) in the wood industry in assessing competitiveness.

Environmental Performance Index

Sri Lanka has moderately higher environmental perception and has lost the competitiveness to log trees from natural forests. Increasing pressure to set aside forests for provision of environmental services and the various environmental regulations have made wood production from natural forests much more costly and shifted its competitiveness to plantations, which are regarded as more sustainable sources of wood products.

7.2.3 Logging operations and productivity

Logging operations and productivity determines with collective interaction of following three

Rural Labor Availability

Without an abundant rural labor force, it is difficult to operate logging activities from natural forests effectively and efficiently. The agricultural labor force in Sri Lanka is higher and it is more than one million. Hence the sri lankan wood industry completive on the labour force availability in the region. It is important to notice that the labour cost is concern in Sri Lanka that has not shown significant change during last 7 years from 2003. Current Labour cost per production hour in Sri Lanka is around US$ 0.4. This rate is considerably lower price when compared with other countries of the region. The labour portion of the cost of production of furniture is higher when compared with other products such as paper, MDF, Fibre boards and parquet because mainly matching hours are employed for those raw products other than furniture.


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Gasoline Price

When it comes to transportation logs and timber in different stages need gasoline in reduced price to industry be competitive. Before last two years gasoline price were very high compared with today’s price. Present retail price of gasoline in Sri Lanka is US Cents 66 and this price is competitive in the region and helpful for a project which is having heavy transportation needs.

Productivity per Worker

Other important component in determining the competitiveness of the wood industry is productivity/1000 workers. But derivation of this factor is not so easy as many employments and the outcomes are not recorded fully as some illegal operations are exist in the wood industry. Number of small scale industries and scattered labour could not be properly recorded for the study.

7.2.4 Demand Condition

Domestic consumption

Usually, producers are more sensitive to domestic customers than foreign customers. Domestic customers’ needs will make producers innovate their operation lines. So, the higher the domestic demand is, the higher the competitiveness of the sector.

Domestic Consumption Per Capita

Per capita domestic consumption of round wood is lower range same as with other countries in the region. High population density makes it less consumption in Sri Lanka than others.

Cost to Export

Transportation cost is the only additional information besides the value of goods for foreign customers. Export cost holistically includes transportation condition, port facility, transportation costs, efficiency of the system, price in the nation, distance to the market, volume of exports from the nation, and the location of the nation. In cost of export Sri Lanka holds moderate position when compared with other countries and it is around US$ 800 per container.


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Weighting of factors for wood extraction from natural forest

Weight Major factors Sub factors Weight

Log (Natural Forest Area) 3.3%

Log (Natural Forest Area Per Capita) 3.3%

Overall Forest Stock 3.3%

20%

Natural Forest Endowments Accessible Natural Forest Area 10%

Plantation-Natural Ratio 10%

Corruption Perception Index 10%

30%

Ease to Cut Natural Tree Environmental Performance Index 10%

Rural Labor Availability 10%

Gasoline Price 10%

30%

Logging Operation and Productivity Productivity Per Worker 10%

Domestic Consumption 5%

Domestic Consumption Per Capita 5%

20%

Demand Condition Cost to Export 10%

Table 9: Weighting of factors for wood extraction from natural forest

Each components has been standardized and calculated as the standardized T score (Normal Distribution with mean = 50 and standard deviation = 10 [X~N (µ=50, σ=10)]). According to the assessment Sri Lanka wood industry overall current competitiveness of wood extraction from Natural Forest (2006) is 49 and according to that criteria Sri Lanka wood industry competitiveness is moderate.

Overall current competitiveness of wood extraction from Natural Forest(2006)

49

Natural forest availability(20%) 46

Natural forest area 50

Natural forest area per capita 43

Overall forest stock 41

Accessible natural forest area 47

Easiness to cut tree(30) 48

Corruption perception index 54

Environmental performance index 42

Plantation natural ratio 48

Logging Operations(30) 49

Rural labour availability 54

Gasoline price 51

Productivity per employment 43

Demand condition(20) 52

Total domestic demand 54

Domestic demand per capita 48

Cost to export 53

Table 10: NCI of wood extraction from natural forest of the


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7.3 NCI of wood production from planted forests

Five key factors which influence the competitiveness of wood extraction from forest plantations based on Porter’s diamond: 1) availability of land area, 2) land investment, 3) demand condition, 4) managerial competencies and 5) productivity and technology.

7.3.1 Availability of land area

Rural Land Area

Two components influence the current availability of land area one component influences the future availability of land area and the other is rural population density directly affect current availability. Low availability of land, it is not possible to establish wood plantations. The more land available, potentially more wood plantations can be established if the climate and other conditions are controlled. Climate and soil may even be surmountable issues these days since technologies, such as irrigation systems fertilizers and biotechnology, are advancing very quickly. Rural population density is important, as the lowering the rural population get more opportunity to invest plantations. Rural population density is changing, which affects future availability. Land availability in some districts in Sri Lanka is higher especially in conflict affected areas. High unemployment and rich soil is providing better investment opportunities for new projects. Many development programmes have been brought to such areas while throughout the island is directed to agriculture and plantation to build the sector to support in development. Available information in some districts is incomplete and only estimated data available.

Rural Population Density

With the development, rural populations migrate to urban areas. Though Sri Lankan context rural population density increased but in some districts available land area for plantation purpose is higher when compared with some districts. When the rural population decreases, this opens up the opportunity to establish plantations there. Also, concentrating urban populations increases the demand for forest products. The rural population is the key component of current plantation business and decreasing population generally brings competitiveness for the future forest plantation business.

District Population Land Area Home gardens area

% of home gardens

to district land area

Colombo 2,251,274 68,469 8,577 12.5

Gampaha 2,063,684 141,890 56,884 40.1

Kalutara 1,066,239 164,391 33,156 20.2

Kandy 1,279,028 192,808 61,029 31.7


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Matale 441,328 206,050 20,258 9.8

Nuwara Eliya 703,610 174,109 9,172 5.3

Galle & Matara 1,751,857 292,085 99,000 33.9

Hambantota 526,414 262,307 44,922 17.1

Jaffna(a) 490,621

Mannar(a) 151,577

Vavuniya(a) 149,835

Mullaitivu(a) 121,667

Kilinochchi(a) 127,263

Batticaloa(a) 486,447 263,983 14,359 5.4

Ampara 592,997 450,031 16,245 3.6

Trincomalee(a) 340,158 267,991 14,083 5.3

Kurunegala 1,460,215 489,787 72,892 14.9

Puttalam 709,677 315,848 64,747 20.5

Anuradhapura 745,693 722,178 56,143 7.8

Polonnaruwa 358,984 344,988 36,180 10.5

Badulla 779,983 285,673 50,764 17.8

Moneragala 397,375 576,763 56,739 9.8

Ratnapura 1,015,807 327,034 56,462 17.3

Kegalle 785,524 168,328 46,782 27.8

(a) Estimates

Table 11: District level land distribution, population and home gardens

7.3.2 Land investment

Land value and country risk

Two components determine the condition of investment: initial cost and discount rate. Land price is the only most important initial cost of investment for planted forests. Country “risk” is an important discount rate factor. Consequently, the land investment factor score will be derived from these two component scores. Land price is determined by considering the aforesaid factors. It is extremely important to note that the degrees of property rights in nations are different, so the land price is not determined by the market force. Initially, land price is the fundamental fixed-asset to invest to start forest plantations. Land value of Sri Lanka is ranging between US$ 5000-10,000 per hectare and this rate is intermediate and competitive price. The comparison between the initial investments and the future cash flow is the rate of return, so land price is the critical factor to determine the investment in plantations. When the land price is artificially lower than the fair value for some reason (e.g. setting the price by a government), the


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circumstance can generate abnormal return for entrepreneurs; however it will likely harm the macroeconomic health of the nation in the long run. Discount rate is very important for investment. The higher the discount rate is, the smaller the present value of expected cash flows. Investors usually use a higher discount rate for a project which contains higher uncertainties and risk. Plantations usually take a long time to cash in the benefit, so the discount rate is fundamentally important. According to the Economic Intelligence Unit (EIU) country score and sovereign rating is 52 in 2007 when Sri Lanka was in conflict. Present situation is totally different and that particular rate should be lower than set by 2007.

7.3.3 Demand condition

Home demand is a very important aspect for Porter’s competitiveness of the nation. Strong demand will enhance the competitive advantage of the sector. Furthermore, related and supporting industries are other determinants of national competitiveness. Therefore, in order to gain competitiveness of wood extraction from forest plantations, it is very important to analyze the demand and related industry. Wood resources from plantations are raw materials, so all demand is based on the production of downstream industry. Wood materials from plantations are always sent to firms for manufacture and finally delivered to end users as paper, lumber or particle board. Raw wood materials from plantations are usually low grade small-dimension trees, such as Eucalyptus or Populus. Still, there are sawnwood grade species for productive plantations. The transportation cost of low grade small-dimension trees is expensive since they take up much space, so it is always a good idea to locate processing centers near plantations and compress raw materials to make final or intermediate products such as paper and pulp, particle board and fiberboard, chips or sawnwood. So, the domestic production of paper, particle and fiberboard, chips and sawnwood is utilized as component scores to estimate the demand factor.

7.3.4 Managerial competencies and productivity

Plantation ownership is the crucial factor of competitiveness. Managerial competencies vary among owners. Competencies emerge over time through an organizational process of accumulating and learning how to deploy different resources and capabilities. Large well managed plantations usually have more competencies than smaller plantations because of their efficiencies to accumulate and to utilize their knowledge. Knowledge includes what species can produce well in specific locations, how to market those species, how to utilize those species and how to maximize the productivity of planted forests. Good governance and management of productive plantations should raise productivity; therefore, managerial competencies directly affect the competitiveness of wood extraction from productive plantations. Present situation in Sri Lanka plantation sector is now using modern techniques and take consultancies from experts and diversify


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their species based on the local conditions such as soil, climate and availability of lands. Also companies tend to diversify their species that aimed to specific products that utilize labour optimally.

Weight Major factors Sub factors Weight

Rural Land Area 5% 10% Availability of Area Rural Population Density 5%

Land Value 10% 20%

Land Investment Country Risk 10%

Paper Production 3%

Particle & Fiberboard Production 3%

Chip Production 3%

Sawnwood Production 1%

20%

Demand Condition Cost of Export 10%

Current Plantation Areas 20%

Productivity of Wood per Employment 20%

50%

Managerial Competencies Technology Index 10%

Table 12: Weighting of factors for wood extraction from planted forest

competitiveness of wood extraction from planted Forest(2006) 49

Availability of lands (10%) 48

Rural Area 50

Rural Density 47

Land investment(20) 50

Land value 58

Risk 44

Demand condition(20) 61

Paper production 53

Fiberboard production 52

Chip production 44

Sawnwood production 49

Cost to export 53

Managerial Competencies 47

Current plantation area 54

Productivity per employment 43

Technolog y 43

Table 13: NCI of wood extraction from planted forest in Sri Lanka

Competitiveness of wood production from plantation forest is intermediate in Sri Lanka compared with other countries in the region.


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7.4 NCI for the sawnwood industry

Weight Major Measurement factors Sub Measurement factors Weight

Competitiveness of Natural Forest 5.0% 10% Related Upstream Industry

Competitiveness of Planted Forest 5.0%

Total Sawnwood Consumption 6.7%

Sawnwood Consumption per capita 6.7%

20% Demand Condition

Cost of Export 6.7%

Gasoline Price 5.0% 10% Energy Cost Electricity Price 5.0%

Manufacturing Labor Availability 6.7% 20% Labor Cost Labor Wage 13.3%

Productivity per Employment 20.0% 40% Productivity and Efficiency Efficiency Index 20.0%

Table 14: Weighting of factors for sawn wood industry

Overall current competitiveness of sawnwood industry(2006) 48

Upstream related industry (10%) 49

Competitiveness of Natural Forest 49

Competitiveness of Planted Forest 49

20% Demand Condition 47

Total Sawnwood Consumption 46

Sawnwood Consumption per capita 44

Cost of Export 53

10% Energy Cost) 53

Gasoline Price 51

Electricity Price 54

20% Labor Cost 55

Manufacturing Labor Availability 56

Labor Wage 55

40%Productivity and Efficiency 44

Productivity per Employment 45

Efficiency Index 44

Table 15: NCI of sawn wood industry in Sri Lanka

In the overall results the sawn wood industry Sri Lanka possesses average competitive position obtaining 48 overall points.


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7.5 NCI of panel production

7.5.1 Related upstream industry and raw material sources

Plywood

For the plywood industry, acquiring large diameter logs is the fundamental competitive advantage. Also regulations in Sri Lanka restrict the large size log harvests from natural forests. Many Sri Lankan plywood producers uses logs harvested from homegardens and plantations.

Fiberboard and particle board

Size and quality of wood cannot create competitive advantage for fiberboard production. However, if firms locate close to raw material production sites, they have competitive advantage. Raw wood is cut and compressed to become particle board or fiberboard, so the volume of fiberboard should be much less than the raw material; thus the final products are much easier to transport. Plantations are one source of raw materials for fiberboard. When a nation has big plantations with fast-growing species, it should have competitive advantage. In Sri Lanka only two companies available and they located in locations to attract rubber wood and mix woods from home gardens. Also the size of the investments is very high and they are producing much board.


Many downstream-related industries which utilize wood-based panels, such as the furniture industry, civil engineering industry and construction industry create the demand. So, total domestic consumption and per capita domestic consumption of these wood-based panels are used as components to estimate the demand condition factor. In Sri Lanka Furniture and construction industries consumes considerable amount of plywood and fibreboards.

Energy cost

Energy cost is the fundamental variable to determine the operational cost of manufacturing. Energy cost for the wood-panel industry is as important as that for sawnwood industry. However the plywood industry and particle and fiberboard industry have different energy requirements.

Plywood

The energy cost condition of plywood industry is quite similar to that of sawnwood. Hence, the factor score is the same as that shown in the sawnwood section. Component scores of electricity price and gasoline price are evenly weighted and the energy cost factor is estimated.


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.


Electricity is more important for fiberboard and particle board production than the plywood and sawnwood sector. Machinery to compress panel boards consumes a lot of electricity. Hence, electricity price and electrification get more weighting to estimate the factor score of the energy cost for the fiberboard and particle board industry. Rate of electricity for industrial purpose subsidized in Sri Lanka and issues on flat rate is US cents 13 per unit of Electricity (1 kW Hour).

Labor cost

Similar to the sawnwood industry, labor cost is an important factor for a firm. Labor availability for manufacturing and hourly labor cost is two components of the labor cost factor score same as the sawnwood industry. The only difference between the plywood industry, particle board and fiberboard industry is the intensity of labor. Plywood manufacturing is more labor intensive than the particle board and fiberboard industry, so weighting is different.

7.5.3 Productivity, efficiency and innovation

Plywood

Earlier it was stated that large diameter logs determine competitiveness for the plywood but in Sri Lanka doesn’t have large log sources and diminishing the sources available.


Usually, fiberboard and particle board production need much capital to pursue competitiveness. In Sri Lanka two companies invested for fireboard and one local company invested for particle board production facility. Weight Major Measurement factors Sub Measurement factors Weight

Competitiveness of Natural Forest 6.70%

10% Upstream Related Industry and Source Corruption Perception Index 3.30%

Total Plywood Consumption 5%

Plywood Consumption per capita 5%

20% Demand Condition Cost of Export 10%

Gasoline Price 5%

10% Energy Cost Electricity Price 5%

Manufacturing Labor Availability 6.70%

20% Labor Cost Hourly Labor Cost 13.30%

Value-Added per Employment 20%

Efficiency Index 10%

40% Productivity Innovation Index 10%

Table 16: Weightings to estimate the overall competitiveness of the plywood industry


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Measurement Points earned

Overall current competitiveness of plywood industry 49

Upstream Related Industry and Source 50


Corruption Perception Index 54

Demand Condition 49

Total Plywood Consumption 47

Plywood Consumption per capita 44

Cost of Export 53

Energy Cost 53

Gasoline Price 51


Labour Cost 55


Hourly Labor Cost 55

Productivity 45

Value-Added per Employment 46

Efficiency Index 45

Innovation Index 44

Table 17: NCI for the plywood industry in Sri Lanka

Weight Major Measurement factors Sub Measurement factors Weight

Competitiveness of Natural Forest 4%

Competitiveness of Planted Forest 12%

30% Upstream Related Industry and Source

Competitiveness of Sawnwood Industry 4%

Total Fiber Board Consumption 10%

Total Fiber Board Consumption 10%

30% Demand Condition Cost of Export 10%

Gasoline Price 2.5%

Electricity Price 5%

10% Energy Cost Electrification Rate 2.5


10% Labor Cost Hourly Labor Cost 6.7%

Value-Added per Employment 10%

Innovation Index 10%

30% Productivity Efficiency Index 10%

Table 18: Current NCI (2006) Fiber Board Industry


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Measurement Points earned

Overall current competitiveness of Fiber Board industry 49

Upstream Related Industry and Source 49



Demand Condition 49

Competitiveness of Sawnwood Industry 49

Total Fiber Board Consumption 48

Total Fiber Board Consumption 45

Cost of Export 53

Energy Cost 82

Gasoline Price 54


Electrification Rate 49

Labor Cost 55



Productivity 45

Value-Added per Employment 46

Innovation Index 45

Efficiency Index 44

Table 19: NCI for the Fibreboard industry in Sri Lanka

Plywood and particle board industry In Sri Lanka performances are not equal even both scored equal points in the assessment. Plywood production companies are common than particle board companies in Sri Lanka. That may be due to the scale of investment. There are two companies in operation out of that one company self consumes over the production while he other company produced them to export market.

7.6 NCT of Pulp and paper production

The pulp and paper industry is quite different from other labor-intensive wood product industries. Sri Lanka owned two big factories started in 70’s. One in Walachchena and other one in Embilipitiya. Currently both factories are closed due to two different reasons. Walachena paper mill has to closed down due to conflict prevailed during past 30 years in the country. That was mechanical milling paper factory. Embilipitiya factory was established for chemical milling and that was also closed due to raw material accessibility issues. In both facility encountered one common problem that was still in effect was established very old and obsolete the machineries, which makes production process costly than imported once. In recycled paper industry in Sri Lanka is still in operation there are few producers collect and recycle papers. Some of them are using invasive aquatic plants as raw material for paper production all those producers are small to mediam size producers. Such companies access raw materials in different aspects and methods.


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There are six factors concerning the current competitiveness of the pulp and paper industry:1) related upstream industry, 2) demand condition, 3) electricity, 4) labor, 5) productivity and innovation and 6) country risk. In addition, water availability is a factor which may influence future competitiveness.

7.6.1 Related upstream industry

Related upstream industry is the first factor to determine a Sri Lanka’s competitiveness in the pulp and paper industry. Related industries contribute raw materials, knowledge, information and efficiency to the pulp and paper industry. Raw material supply is a critical issue in pulp and paper production. Unlike other wood processing sectors, the pulp and paper industry obtains wood and fiber supplies from a wide variety of different sources. These include: pulpwood; wood residues (from the sawmilling and plywood industry and recovered wood products); non-wood fiber sources; and recovered paper. Residues from saw milling and furniture industry built huge heaps of wood waste. Around 50%to 60% waste is produced in furniture industry in Sri Lanka. Most of those residues are abundant in yards and burnt them out otherwise dispose or use as land filling material. Present trend is using such materials for some industrial purpose or even in the bio energy sector for industrial thermal energy.


Home demand condition influences the overall competitiveness of industry in the nation. Sri lankan demand in different type of papers are listed below for five years in Cubic meters.

Different paper and board 2004 2005 2006 2007 2008 Paper and paper board 280,000 280,000 170,000 264,000 331,000 News print 41,000 41,000 49,000 50,000 45,000 Printing and writing papers 103,000 103,000 35,000 70,000 122,000 Other paper and paper board 137,000 137,000 87,000 144,000 166,000 Household and sanitary paper 2,000 2,000 249 222 2,000 Wrapping and packaging 9,000 9,000 9,000 9,000 9,000

Table 20: Paper and paper board demand in Sri Lanka from 2004 to 2008

7.6.3 Energy cost

Electricity

Electricity is the major source of energy for the pulp and paper industry. I used the component score of electricity price in a previous section, but waited until the pulp and paper industry section, because electricity is critically important for pulp and paper


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production. The Electrification rate in Sri Lanka is arroung 66% percent when 2006 according to International Energy Agency. Presently the electrification rate much more higher then figure 2006 after conflict resolved

7.6.4 Operations

Labor cost, labor availability and efficiency are the components of the operation factor which influences the competitiveness of the pulp and paper industry. The labor cost of paper production is not as important as the other labor-intensive forest product sectors. Hourly labor cost and manufacturing labor force data have been shown in a previous section.

7.6.5 Capital investment

The paper industry is a capital intensive sector. So, capital for paper and pulp industry is extremely important. When a firm introduces larger and more advanced machinery than other firms, it should gain competitive advantage against others for quite a long time. Capital is the fixed cost, while raw material, labor, energy, and water are operating costs. In Sri Lanka two big investments were comprised with old and obsolete machinery hence necessary to renovate them for paper production in competitive environment.

7.6.6 Productivity and innovation

Technological advances in processing techniques have been quite gradual but constant. New available innovative technologies have been developed in parallel to enable the industry to adapt to these changes in wood fiber supply. In Sri Lanka some small scale entrepreneurs changed the fibre source for paper production and that innovativeness makes them success.

Water availability

Paper and pulp production utilizes great deal of water. Most APR are influenced by the monsoon system, so the area is relatively wetter than other parts of the world. However, several areas have experienced regional water shortage because of the climate or of the large population. In Sri Lanka water availability many parts of the country is not a issue and which make an advantage.

Weight Major Measurement

factors Sub Measurement factors Weight

Competitiveness of Natural Forest 2%

Competitiveness of Planted Forest 6% 10%

Related Upstream Industry Competitiveness of Sawnwood Industry 2%

25% Demand Condition Total Paper Consumption 10%


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Paper Consumption per capita 10%

Cost of Export 5%

Electricity Price 10% 15% Energy Cost Electrification Rate 5%


Hourly Labor Cost 3.30% 10% Operation Efficiency Index 5%

10% Capital Investment Country Risk Score 10%

Value-Added Productivity per Employment 10%

Volume Productivity per Employment 10% 30%

Productivity and Innovation Innovation Index 10%

Table 21: NCI for the Fibreboard industry in Sri Lanka

Overall current competitiveness of pulp and paper industry 49

Related Upstream Industry 49



Competitiveness of Sawnwood Industry 49

Demand Condition 47

Total Paper Consumption 45

Paper Consumption per capita 47

Cost of Export 53

Energy Cost 52


Electrification Rate 49

Operation 50



Efficiency Index 45

Country Risk Score 44

Productivity and Innovation 50

Value-Added Productivity per Employment 45

Volume Productivity per Employment 58

Innovation Index 46

Table 22: NCI for thepulp and paper industry

Competitiveness of wood industry in Sri Lanka remains in average position in all aspects of above discussed criteria. Industries required different inputs in different nature to overcome barriers to upgrade and increase the production. Capital, technological, raw material investments are the needs in different degree.


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8 INDUSTRY SWOT ANALYSIS

8.1 Strengths

8.1.1 Availability of good plantation grounds in river bank erosion purpose

Sri Lanka’s land extent is 6.5 million hectares in total and number of rivers are 103. Total area covered by rivers of Sri Lanka is 16% of total land area of Sri Lanka. Following table shown some longest rivers and their lengths in Kms. Mahaweli Authority of Sri Lanka (MASL) has 10,000 km length of banks of rivers and waterways. Sri Lanka face serious problems in river bank erosion followed by illegal natural resource mining, illegal felling and forest clearing aimed development programmes. Bamboo is good erosion control plant that could grow in the banks of rivers. MASL presently has ongoing project to plant bamboo on river banks. Other than those bare lands, reservations for roads, lowlands and water reservoirs are suitable ground for such a plantation programe and it is strength to the country.

Name of River Length Km

Mahaweli Ganga 335

Aruvi Aru 164

Kala Oya 148

Kelani Ganga 145

Yan Oya 142

Deduru Oya 142

Walawe Ganga 138

Maduru Oya 135

Maha Oya 134

Kalu Ganga 129

Kirindi Oya 117

Kumbukkan Oya 116

Menik Oya 114

Gin Ganga 113

Mi Oya 109

Gal Oya 108

Total lengths 2289

Longest rivers in Sri Lanka

8.1.2 Availability of planting material propagation facilities in operation.

Even it is still under developed the bamboo industry has good future in Sri Lanka as many related institutes taken steps in deferent level for planting. Prominently the Mahaweli authority of Sri Lanka has a significant size bamboo plant propagation centre at Mawathura, Kotmale, Sri Lanka, and Samrdhy Authority of Sri Lanka has Invitro


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proportion facility that could be abundant and available for such a propagation project. Department of Botanical gardens has such propagation facility and they have already tested propagated and cultivation has also done in the field for the purpose of research and conservation. Institute of Fundamental Studies(IFS) and Institute of Technical Industries own such facility and spent some time for propagation bamboo. Those facilities available and the technical personalities available at particular institutes are strength to the future of the industry.

8.1.3 Existing craftsmen and skill workers who already has the key competencies.

Craftsmanship developed traditionally working with hand made tools are still in the wood industry in Sri Lanka. With developed tools and equipments it is easier to work and productivity is high. Skilled labour force in the industry amounts 28,000 in 1993 according to the FSMP. Total mechanized and non mechanized furniture manufacturing stations in 2009 was 5454. These resources are strengths to the industry.

8.1.4 Institutional arrangements that could back the trade and act facilitative role

Lot of institutes in Sri Lanka to support industry by training, technology and marketing, promotion, sales and financing are strengths to the industry. Ministry of Industrial and Commerce, Industrial Development Board, National Chamber of Commerce, Industrial Chamber of Commerce, National Skill Council, National Crafts Council, STC, National Apprentices Board, Universities, Department of Forest Conservation, Export Development Board is some of those institutes. Many services required by the industry people are delivered by those institutes free of charge or for a nominal fee. Some other private and non government organizations are providing supports other than institutes mentioned above. It is a strength to the industry in Sri Lanka.

8.1.5 Existing bamboo cultivation programme with MASL

MASL currently started propagation as mentioned above and have intensive programme to planting them on river banks. All required grass shoot level understanding and vertical and horizontal linkages been established practically whatever they decided up to now. It is now become to strength of the national level programme for bamboo cultivation and followed processing in second step.

8.1.6 As a bio fuel for renewable energy generation

Opportunities in Bio energy is now booming stage in Sri Lanka than never before. Highest purchasing price for one unit of electricity generated roughly more than 16US cents. Bamboo could be utilized as a raw material in electricity generation. Recent past there were male bamboo cultivation programme with the aim of use as wood fuel in electricity generation. Bamboo as highest growth rate among other wood fuel species


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proposed such as Gliricidia sepium and Leucaena leucocephala. It is strength to the country having such propaganda before new project launched.

8.2 Weaknesses

8.2.1 Duplication of issuing permits for the transportation of planks and furniture.

Timber and timber related raw material and finished products are restricted extraction, processing, manufacturing, transportation or sale without a valid permit obtained by the respective authorities. Usually timber permits are issued by Divisional Secretaries (DS). Sometimes permits issued for extraction and transport logs not valid to transport furniture or finished products made out of it. A fresh permit need to be obtained for furniture produced.

8.2.2 Difficulties in quality improvements due to technical backwardness

Some technical advancement in wood industry obtained few producers those operate in mass scale and with high capital investment capacity. Technology needed in rest of the industry is far away and no mechanisms to extent to each level of producers. Many producers have very old wood technology that doesn’t concern the waste reduction but concern final product quality.

8.2.3 Non availability of seasoning and preservation complexes in majority of districts except Colombo

Majority of wood seasoning facilities are available in Colombo district and few others are in the Western Provice of Sri Lanka. Access to such facilities is very much needed for other majority of districts contributes woody raw materials. That causes additional transportations costs and unnecessary legal procedures to follow obtain the service. Other disadvantage on this is ability of upgrading low quality timber available is not utilized as expected. 1260 of mechanized carpentry sheds and 136 non mechanized carpentry sheds operates in western province and 3007 mechanized carpentry sheds and 1051 non mechanized carpentry sheds in operation in other districts. 75% carpentry shops mechanized and non mechanized are scatter over other provinces than in western province.

8.2.4 Non availability of technology to rural industries

Village based industries process large amount of finished products that accounts according to FSMP 8500 small scale and 600 medium scale enterprises. Percentage of raw material they handled is 82% while large industries uses rest of it. The industry in larger share disadvantaged with poor technology transfer.


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8.2.5 The high taxes imposed on material, accessories & consumable needed in wood work industry

Imported raw materials are second most important in wood industry and imposed higher taxes and tariffs are weakening the import attraction. This is adversely effect on the local wood industry as it adversely affects escalating final product price. This is relative disadvantage(See annexure 01).

8.2.6 Lack of industry trained people or skilled once have been migrated

Industry trained people are been paid based on industry standards. Skilled once are searching better remuneration and migrate usually higher paid jobs for their benefits. There is necessarily to have a stable economic and favorable environment to maintain well paid technologists and bad environment in the past country. Many people migrated and now industry experiences the shortage of experts.

8.2.7 Legal framework for extraction and transportation of NTFP products

Bamboo as a NTFP could not be transported without permits even extracted from private lands. One calm at a time could be transported without any permits. There should be more flexibility of such regulations governing NTFP sector to enhance the enterprises which use bamboo as raw material.

8.2.8 Meet the imposed environmental laws

Most of the establishments are too weak to meet the recently imposed environmental laws regarding noise level, dust and paint fume emissions and effluent discharge.

8.3 Opportunities

8.3.1 Availability of wood industry waste

Rough estimate on wood waste (off cuts, saw dust and wood shavings) compiled based on current wood demand is 330,000 m3/year. This volume is not properly utilized in many parts of the country. Wood waste is good source for particle board industry and it creates opportunity for investment on particle board production.

8.3.2 Existing producers who willing to use bamboo as raw materials

In particular bamboo processing industry still not established fully in Sri Lanka some scattered crafts makers are in operation and who makes good quality handicrafts those can compete in handicraft industry on quality basis. Many of them are in touch with export market that concern much on quality than price.


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8.3.3 Huge export market is available for the products.

Demand for furniture and wood based other products is in high demand from Sri Lanka with huge expansion potential. As same bamboo crafts and other bamboo products such as parquet and furniture is in demand in the line of other products are marketed. Specially bamboo craft producers receive export orders but could not undertake fully due to technological barriers. Modern technology will work for cost reduction, quality enhancement and capacity enhancement of producers and products.

8.3.4 Global concern on CDM projects and Sri Lanka also a partner of the treaty.

Current global trend is environment conscious and take measures in every steps to minimize losses to the environment and reduce GHG’s. Sri Lankan has good tree planting culture and bamboo is a good emission reduction plant as it has vigorous growth rate. This is good opportunity to have plantations with CDM oriented, which will help attraction of funds from CDM buyers.

8.3.5 Activated Carbon (AC)

Sri Lanka has world biggest AC manufacturer called Haycarb Plc. AC manufacturing process utilize coconut sells as raw materials. Coconut shells from Desiccated Coconut (DC) millers are received while some suppliers bring charcoal directly. But more than 60 % coconuts are in house hold consumption and could not be able to collect sustainable manner. Current trend is minimized supply of coconut shells for AC production and search for another raw material for AC. Bamboo charcoal is good source for AC production and country has good opportunity with bamboo cultivation and waste part utilizing for carbon production.

8.3.6 Bamboo charcoal as barbeque charcoal

Barbeque charcoal export market is wide and open in Middle East and western countries. Presently exporters used different sources such as coconut shells, other unsustainable wood from home garden and which is now little restricted due to heavy competition on woody raw materials. It is opportunity to start bamboo cultivation programme island wide which could provide as a raw material for barbeque charcoal industry.


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8.4 Threats

8.4.1 Inadequate taxes imposed in handicrafts imported

Poor quality products made out of bamboo has flooded to Sri Lankan open market from different countries which led difficulty to compete local products on cost concerns. Many skilled small entrepreneurs phased out from the production process due to replacing small home made handicrafts and kitchen equipments.

8.4.2 Poor quality imported sawn timber and timber products invaded the local economy over good local products.

Many varieties of timber imported from different countries are in low grade and not specifies the class in import. In documentation the class of the timber indicated as other. This is due to poor regulations of the state authorities. This has been severally effected to the local industry boom.

8.4.3 Increasing population and high pressure on cultivable lands

Population growth rate is 0.904% (2009 est.) per annum and this demands more lands for settlement, food production and another infrastructure facilities. Land dedicated for food production has been converted to land for settlement and increasing demand for food production exert pressure on natural forest. Mnay large agricultural lands currently being transformed to settlements and this is threat to the forest product sector as reducing the capacity of production.


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9 INVESTMENT POTENTIAL OF THE INDUSTRIES

9.1 Sawn wood industry

This industry was almost self sufficient according to FSMP in 1996 as per the projection made sawn wood demand in 2007 was 713 m3. About 606.3 m3 were produced locally while 108.9 m3 imported to meet the sorted supply. In sawn wood industry raw material supply is becoming more restricted with the time and ever increasing. State sector having plans to expand the plantation forest plantations to cater the required demand still growing. Plans setout by FSMP 1996 to expand local wood supply was not realized due to non performance of as required by implementation organizations. Currently private sector organizations invest in the plantation forestry sector but due to higher pay back period investment attraction is limited. Industry is necessary to have sourcing investments to increase the domestic supply unchanged and to reach the total demand required huge amount of foreign exchange. Bamboo related construction industry has not been developed in Sri Lanka after conventional construction industry utilized them in different construction requirements. Bamboo could replace sawn wood in many ways after seasoning has been done. Seasoned bamboo can last 10 to 15 years without any damage. Even traditionally bamboo has treated with methods developed by people such as smoking (keeping above fire place), whitewashing (application of slacked lime) and elevated construction (bamboo use in construction without direct contract with soil). Treated bamboo with any of above methods sometimes plastered to limit contact with worst weather directly. Modern chemical treatment could have long life than traditional method with developed jointing methods far good source for replacing sawn wood utilizing construction industry. This is new area that brings results in short run reducing cost of construction and could reach to national targets within short time period. Plantation establishment with high quality bamboo species, which suitable for construction industry are necessary to reach the target.

9.2 Furniture industry

Capacity of the industry can assess in terms of wood resources utilized annually. In furniture industry has following requirement requirements and development needs

• Wood seasoning facilities

• Supplementary raw materials

• New technological advancements to improve quality and reduce wastage

• Developed machinery for carpentry In wood based industry many timber varieties now being came to the economic use those have not been utilized earlier as poor quality raw materials. Some species need preservation while others are not. Introduction new supplementary raw materials are far more important method to uplift the industry and which allow access to new markets.


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Suitable such raw material in Sri Lanka is bamboo industry which could develop with less time period with investments for plantations, harvesting techniques, seasoning and processing techniques, with low cost investment requirements to fast substitute the industry raw materials. A preservation technique of bamboo presently available in Sri Lanka, but it is in small scale with producers of handicrafts. Only one bamboo seasoning facility has been established in Vidata Resource Centre at Horana Divisional Secretariat, Sri Lanka. But the center still in abandon without giving any services to the public as the other parts of the industry has not grown enough. Poor quality raw material, legal barriers to harvest and transport bamboo and underdeveloped supply are drawbacks and stagnate the industry. Production of furniture using bamboo species is different technique and developed techniques need to be brought Sri Lanka from China or India. Craftsmanship in furniture production is well developed in Sri Lanka with rattan industry and bamboo also behave in the same line of production hence it is very easy to introduce bamboo furnishing technique to Sri Lanka.

9.3 Plywood industry

Plywood industry in Sri Lanka is hundred percent in private sector investment. Old state owned Ginthota plywood later reopened under private ownership and still operates with moderate technologies. Many processes are handled manually. The level of efficiency is less as operated with manual labour. All plywood factories in Sri Lanka presently in production is necessary to invest in automation that could upgrade the quality and reduce the cost of production. Almost all the factories established in areas where adequate land facilities are available and not expansion restricted with land issues. Labour availability is not an issue in any investment and labour rate is reasonable but in the investment in machinery and building is necessary in each factory as they are running on very old outdated machinery required modernization with new technology. Arrangement of buildings also not in order required by standard production facility which required by the industry standards. Other important aspect to consider is raw material availability to supply for the plywood production. The quality logs for veneer production are increasingly limited with the demand created by other relevant industries for the same source. It is necessary to have national level programme to increase the availability of logs that are suitable for plywood production through tree planting in home gardens and plantation forestry. Ginthota plywood mill is operating at the capacity of 2000m3 per month and when material in short import raw veneers for the production. This was originally designed to operate on imported veneer logs but now operating with locally supplied raw materials.


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9.4 MDF and particle board production

Two major factories one for MDF and other for particle board production are in operation in Sri Lanka. Both factories are using modern technology and fully automated production process. Both factories are operationally in same size and utilize 2000 m3 of raw materials per month. Particle board production factory utilize wood waste as their raw material and finished products are fully absorbed for their finished product such as furniture production well-known as DAMRO in Sri Lanka. The company is also operating in other countries producing furniture and thorough with the modern technology. MDF board manufacturing facility in Sri Lanka is Board Of Investment (BOI) approved company and 90% of the production export and only 10% release to the local market. Company face sometimes raw material related issues as it concentrate all kind of soft wood that are in limited supply due to the competition among companies for renewable energy projects with recently created interest.

9.5 Pulp and Paper Industry

There are two paper mills both owned by NPC in Valaichchenai and Embilipitiya. Both factories are now not in operation. Combined capacity of both factories are 37,500 t/year. The Valaichchenai mill has one paper machine, one board machine and a straw pulp line. The capacity of the pulp mill was 25 t/day. The capacity of the paper machine the capacity of the paper machine is 10,500t/year, and the and that of the board machine12, 000 t/year. The pulp and paper mill in Embilipitiya has a rice straw pulp mill with a capacity of 38t/day, and paper matching with a capacity of 15,000 t/year. Both of the pulp mills were designed to use non-wood fibre as their main raw material, the rest being waste paper and imported wood pulp. At full capacity the total rice straw requirements were 50,000t/year. The NPC has not been able to collect this quantity, which has caused production problems. Some wood is also used in the furnish. The reduced supply of rice straw is one of the main reasons for changing the pulp furnish. These two production facilities need to be reconstructing to start production again to contribute some percentage to the domestic paper consumption. Machinery, buildings, and new production technology together with raw material supply necessary to be arranged. That entire reconstruction and renovation programme would be a major project it will create many employment opportunities. Other than those two factories owned by NPC few other paper production companies they are making paper out of waste paper recovery. Bamboo planting and processing programme could link to the industry when bamboo act as a raw material for paper production.


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10 ESTIMATED WOOD WASTE RATIO

In Sri Lankan situation there is an Un-tapped potential laying waste on the forest floor in processing yards which is raw material for another industry. According to the industry surveys done by the Department of Forestry and Environment Science, University of Jayewardenepura and many other industry players accounts the wood waste percentage from logs to final sawn timber products is 50%. Utilized Current demand in Sri Lanka is 2.7m3 million of wood covering all the categories. From that volume about 500, 000 m3 is used as it is as poles and plywood and other boards. Balance is further processed for final products making by product for another industry estimated 50 to 60 % on furniture manufacturing. As an average figure 30 % of waste out of 2.2 million processed volume results 330,000 m3 annually. This is heavy loss caused in each value addition processes. When consider timber tree from the time of harvesting to final product the wastage factor has been estimated as 65% or the utilized volume is only 35%. The waste parts from logging to sawn wood are branchwood, lops, tops and off cuts. The conversion of wood waste into composite materials presents one of the best technological solutions available in order to reduce this loss. Timber waste can be converted into several composite materials like lamin wood, blockboard, cemboard etc. There are several national benefits in the use of lamin wood: savings in the countries gross timber consumption, reduction of environmental problems and saving of foreign exchange. Laminated timber can be manufactured to substitute massive wood beams using low grade timber and wood waste. Particle board production plant at DAMRO furniture production facility utilizes famous waste wood from the wood industry. Those are heaps of off cuts, Wood shavings, saw dust and barks. Many sawn timber producers and furniture manufacturers are usually abandon this valuable raw material in road sides and floor of the yards of saw mills are not properly utilized. Other sub sector in wood industry making losses is plywood manufacturing and this has accounted maximum 30% of logs delivered to the factory. The percentage of waste is depending on the verity of wood using for the production process. According to the information from Ginthota plywood the recovery ratio from pine wood accounts 87% and it is with rubber is 70%. The percentage of wastage vary from 13% to 30 % depend on the species of wood have been utilized. These waste wood is fully utilized in plywood factories to energies their boiler.


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11 BAMBOO

11.1 Introduction

Cultivation and utilization of bamboo are linked with mankind ever since the beginning of civilization. Because of it use as a long-fibre raw material in the pulp and paper industry, bamboo has achieved the status of a versatile industrial material. The bamboos which are giant, woody, treelike grasses have a long history as an exceptionally versatile and widely used resource. Especially in Asia, where it is known variously as the "poor man’s timber", the "cradle to coffin plant" and "green gold" bamboo has and still provides, the materials needed for existence. Bamboo is also an eminently renewable resource; under the right conditions they display prodigious rates of growth some species can produce culms 40m high and 30 cm in diameter in just four months.

11.2 Bamboo resource in Sri Lanka

Bamboo resources in Sri Lanka are not as abundant as in many South Asian countries, and consequently the importance of bamboo in the household economy, construction, and in cottage industry is comparatively less. Bamboo is important plant with many traditional uses, which help in meeting subsistence need and also provide a source of cash income. According to the available records, there are about more 30 species of bamboo in Sri Lanka. Of these, one genus and 8 species are endemic. Twenty species have been introduced, of which 7 are cultivated and that 17 species are listed below table 23); Species name Local Name

Native

* Arundinaria densifolia1 Bata

* A. debilis Bata

* A. scandens Bata

* A. floribunda Bata

* A. walkeriyana

* Pseudoxytenanthera monadelpha Bata

O Davidsea attenuate Bata

* Ochlandra stridula Syn. O. talboti Bata

* Dendrocalamus cinctus -

* Bambusa bambos Katu Una (Spiny bamboo)

Introduced

Kola Una (Green bamboo) Bambusa vulgaris

Kaha Una/ Rana Una (Yellow bamboo)


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Bambusa multiplex Cheena Bata (Chinese bamboo)

Dendrocalamus giganteus Yoda Una (Giant bamboo)

Dendrocalamus membranaceus Una

Dendrocalamus asper Una

Dendrocalmus strictus (Male bamboo)

Thyrsostachys siamensis Syn. T. regia Siam bamboo (Thai/Male bamboo)

Table 23: Native and Introduced Bamboo Species in Sri Lanka

Other species are found only in the botanic gardens available species in botanic gardens listed in the table 24. below.

Botanic Gardens

No Species Name Peradeniya Gampaha Haggala

1 Arundinaria X X

2 Bambusa atra X X

3 Bambusa multiplex X X X

4 Bambusa bambos X X

5 Bambusa polymorpha X X

6 Bambusa tesselata X

7 Bambusa tulda

8 Bambusa variegata X X

9 Bambusa ventricosa X X

10 Bambusa vulgaris X X

11 Bambusa vulgaris cv. vittata X X X

12 Chimonobambusa X

13 Dendrocalamus asper X

14 Dendrocalamus giganteus X X

15 Dendrocalamus hamiltonii X

16 Dendrocalaums longispathus X X X

17 Dendrocalamus strictus X

18 Gigantochloa atter X

19 Meloccana beccifera X

20 Ochlandra species X

21 Thyrsostachys siamensis X X

Table 24: Bamboo Species Established in the Botanical Gardens of Sri Lanka

Distribution of bamboo resource is in all three major climatic zones in Sri Lanka. The indigenous species are associated with wet zone, intermediate or mountain forests, while the two introduced species, the common bamboo and giant bamboo, are mainly fornd in


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home gardens, and along roadsides and river banks. Among the ten endemic species seven are found in the high altitudinal montane area of the central hill country, two are strictly confined in the dry zone and one occurs in the wet zone moist lands, cleared rain forests and forest gaps. Katu una(B. arundinacea) is found naturally in parts of the dry zone in the Matale and Polonnaruwa districts (Table 25). The availability of bamboo varies by location. The indigenous species can be found in the natural forests, where they constitute the under-story. The availability of indigenous bamboo species in forest areas, such as O. stridula, is decreasing because of deforestation and over-exploitation. However, they can still be found abundantly in a few areas, e.g. in Ratnapura and Kalutara Districts.

No. Species Location

1 Bambusa bambos Dry zone (wasgamuwa) Intermediate and dry forests in low hills

2 Ochlandra stridula Wet lowlands and in the low hills in the western and southern parts of the country

3 Arundinaria densifolia High altitudinal montane areas

4 A. debilis -do-

5 A. scandens -do-

6 A. floribunda -do-

7 A. walkeriana -do-

8 Pseudo oxytenanthera

monodelpha Wet and intermediate zone, mountains of Badulla and Nuwara eliya districts

9 Davidsea attenuata -do-

10 Dendrocalamus cinctus Dry zone North Central Region, restricted distribution.

Table 25: Native Bamboo Species and their habitats

The introduced bamboo species are cultivated in various locations but the extent to which they are grown is not known except Bambusa vulgaris and Dendrocalamus giganteus. In the 1960 and 1970s. D. strictus (from India) was planted in bamboo plantations, but the plantations were later abandoned promoted by FD. Introduced species, especially B. vulgaris are cultivated in home gardens. The giant bamboo(D giganteus) is cultivated mainly in Kandy, Kgalle, and Gampola(Table 26).

No. Species Location

1 Bambus multiplex Cultivated in rural area

2 Bambusa vulgaris The wet zone, common on river banks

3 Dendrocalamus asper The intermediate zone

4 D. gigenteus The wet zone; common on river banks and home gardens

5 D. membranaceus The intermediate hills

6 D. strictus Planted by FD in the dry zone

7 Thyrsostachys siamensis Cultivated as an ornamental


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Table 26: Bamboo species cultivated in Sri Lanka

Bamboos are found on both private and government lands. According to a survey in 1991, the two widely used bamboo species in the country, Ochlandra stridula is found in state forests, and Bambusa vulgaris mainly found on private lands. The extent of their occurrence is presented by division (Table 27). Kalutara shows the highest bamboo hetaerae particularly O. stridula species. The extent of population of the other bamboo species has not been determined as they are scattered in small patches and some are ignored and indiscriminately eradicated due to lack of potential use.

Yellow Bamboo Bata Giant Bamboo Spiny Bamboo

Division B. vulgaris O. stridula D. giganteus B. bambos

Other Total

Badulla 8 1 - NA - 9

K'negala 12 1 1 - - 14

Kalutara 62 1352 - - - 1414

N'Eliya 29 - - 4 300 333

Matale 2 - - - - 2

Galle 5 577 - - - 582

H'tota 42 - - - - 42

Kegalle 75 190 - - - 265

Ratnapu

ra

1 4 - - - 5

Total 236 2125 1 4 300 2666

Table 27: Bamboo species cultivated in Sri Lanka

11.3 Traditional bamboo Industry

Many of the indigenous bamboos are shrubby montane types and not well suited for utility purposes. Six species are commonly used. Of which three are native other three are introduced: Bambusa vulgaris, Dendrocalamus giganteus, D. asper, D. membranaceus, D.stricus and Ochlandra stridula. Bamboos are used in the cottage handicrafts industry, and in housing and construction. The manufactures of bamboo handicrafts such as baskets, strainers winnowing pans and blinds is almost entirely based on the small-diameter “Bata” Ochlandra stridula. This industry concentrated in the south western and central parts of the country. They can be found especially in the following districts: Kaluthara, Galle, Kurunegala, Gampaha, Rathnapura, Kandy, Matara, and Kegalle. The bamboo industry is important in Gampaha and kaluthara Districts. In the other districts, the manufacture of bamboo products mainly provides supplementary income. This industry associate with lowland rainforests such as Singharaja and other small forest patches come under lowland forest reserves. These species initiate new shoots with rain starts and grows fast suitable for handicrafts


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industry. These young shoots are collected usually by women in sustainable manner. They have no permits to extract these young shoots from forest boundaries and usually not enter to the thick forest. They do not have shoots year-round and they involve with any other works during that period. Usually permit holders are businessmen are extract mature calms enter inside to the forest and search new resources. Usually they collect and transport culms to use in Prawn industry and to Radawadunna for preparation of blinds and handicrafts.

11.4 Construction industry

The increasing industrial role for bamboo will also provide jobs and income for the poor. High value-added products requiring an industrial base include roofing sheets, plywood and particleboard, laminated components (for construction, joinery and furniture), high quality flooring, pulp and paper. Other possibilities for community-industry partnerships include the use of bamboo for reinforced roads, pedestrian bridges, culverts, retaining walls, dams, water tanks, fuel wood, briquettes, charcoal, food and food storage bins.

In Sri Lankan context B. vulagris is most important bamboo species in construction (in scaffolding, house frames, posts, pillars, walls and concrete reinforcement). In urban construction, bamboo was the most important pole material (Mainly Bambusa vulgaris, both green and yellow) for scaffolding and supporting poles for concrete shuttering props. Bamboo after using once discarded and decayed in construction yards. Especially high starch content in local bamboo attracts insects like weevils and fungus. Relatively cheaper, easiness to extraction, transportation and less restrictions made by authorities when comparison with other woody materials made it over exploitation depredated the resource. Mainly B. vulgaris grown in state lands declared as reservations for water streams, lakes and paddy fields and forest reserves. Resource base in private lands is limited. This loose controlling system made it difficult to manage. As a controlling mechanism in recent past the issuance of permits was restricted. This was entirely for control over exploitation an let it to replenish back. Filling the gap in the market some other poles came to play such as pine thinning poles, Ipil Ipil poles and iron scaffoldings. Presently the restriction was again released to allowing permits extract bamboo and visible extracted bamboo in timber yards of construction materials suppliers. Conversion of lands for other uses restricted bamboo’s growing grounds badly affected the supply of culms. Now bamboo extraction and transportation permits are issued in Divisional Secretariats in connection with Regional Forest Office. In construction industry bamboo is still indirect use as tempory material as it decays fast. Short lifetime of bamboo is needed treatments to extent it’s economic life in construction. There are many construction in long ago are still in good condition in Sri Lanka due to treatment done in past. Most probably may be fumigation techniques or something more than that. Such seasoning facilities not available in Sri Lanka and the poor knowledge of people about the importance of seasoning is main reason to under develop the industry. There is a gap between available very simple treatment methods and parties who really have needs. To fill that gap an extension service is needed.


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11.4.1 Bamboo treatment facility at Horana Widata

Developed raw materials value addition in bamboo non existent in Sri Lanka other than the handicraft industry. Self development has been achieved by some individuals who endeavored to retain in the industry. Many companies and firms in wood industry have poor knowledge about using bamboo as raw material, diversification material, cost reduction resource or innovative line of business. They have no example facility in Sri Lanka to see the performance and success or failures. It is necessary to bring the know how to the country while targeting right kind of people, recommends performing industrialists first and other interest parties second. Bamboo treatment facility has been set up in Vidata resources Center at Divisional Secretariat Horana. That facility established in 27th November 2009 by the ministry of science and technology with the help of Lanka Network for Bamboo and Rattan(LNBA) with Ministry Of Science and Technology(MOST). That facility have a capacity of treating at least 25 culms with 12 feet long at a time and drying after boron treatment. The centre is now idling and available for parties who need get treated their materials or training. That facility has a lesson to learn that people are not aware about bamboo and their uses in construction industry and other.

11.5 Handicrafts Industry

Another important industry that could drain in foreign currency in Sri Lanka is handicrafts processing industry using raw materials as bamboo. Different kind of utensils and decorative handicrafts such as souvenirs, wall hangers, pen holders, key tags, different models, table mats are prepared using bamboos in Sri Lanka. This is high value addition process to the bamboo calm which is available at US$ 1.3 for una bamboo and US$ 3 for giant bamboo. Availability of bamboo raw material is not a matter for handicraft industry as the production capacity is very small. Even legal restrictions are there they get enough supply from vicinity with or without extraction permits. People engaged in handicraft industry preferred local species like Una bamboo as the workability

Recommendation for construction industry Treatment method such as boron treatment and fumigation could be easily publicize and bring into usage when service required crowed is gathered. Construction industry stake holders are better crowd to popularize the technique as they are in touch with the requirements and the resource base but being used non economic way. Innovative designs and cost minimization is highly supported by bamboo raw materials that could easily be communicated to them. Government and non-government organizations such as ITI, IDB, NCC, CCI and MOIC could be used as the vehicle. Available impregnation facilities in wood industry is important source for bamboo processing until such facilities established suited for bamboo processing.


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is very high. That is due to softness of bamboo culms than exotic once. Giant bamboo, introduced species cultivated in Kandy, Matale and Gampola is suitable for handicraft production according to the craft makers.

11.5.1 Imported handicrafts

Handful of handicraft makers is involved in making handicrafts and they face many problems in the market with competing imports from China and India. Bamboo products are coming to the country is very cheaper when compared with locally produced once. Technology and good quality raw materials available in such countries make it cheaper final products compared with country like Sri Lanka. Free trade agreements and other light tarried structures leads such imports come into local market in competitive price. Producers claim that all efforts made from extraction of bamboo to finding a foreign buyer is huge task and the support given from the public sector institutions are less. Endeavourers made and developed techniques themselves still keep them in the business other wise the industry might not be exist or they might be slipped away. Handful of craft makers are available in Sri Lanka, among them two producers are engaged fully in the industry, who make crafts in international standards and export products to number of countries.

11.5.2 Bamboo furniture

The producers own the technology of making furniture from bamboo and they claim that the finished products could not be marketed due cost of production high. Technologies of processing and required machinery and wide market is developed they will have the advantages of economies of scale.

Figure 8: Furniture made out of bamboo


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11.5.3 Labour availability

As the industry is underdeveloped the workload is not uniform to streamline of the production process. Workers always need to train different designs as the order received last and owner has to develop new tools or simple machines to finish the product. Workers always have to train and change the works done. The skill level improvements in any particular work will not happen for a start new business with training and experience gathered with works done. Working environment is difficult for workers and as a collective result impels workers to leave. Also some inherited skills are needed to succeed within the industry. All above reasons lead to a high labour turn over in the industry.

Figure 9: Worker engaged in handicrafts industry

Ultimate solution to bring the industry front they expect the technology with machinery to reduce cost and increase profits to survive in the trade before expansion. Bamboo leaves are also used in thatching. But presently very few or non existent leaves use as raw material in construction in Sri Lanka. The skilled labour foe such kind of works are rare and remaining once will disappear in near future. O. stridula and Dendrocalamus species are used in construction from long ago.


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Price has increased rapidly. In 1988-89 the average price of a 30-foot (9m) bamboo calm was about US cents 27; in early 1995 it was US cents 72 and present market price is US$1.35. There is no statistics on bamboo consumption, but the FSMP estimate is that total annual consumption is at least 80,000 m3, i.e. about 700,000 culms.

11.5.4 Steps to follow to obtain a bamboo extraction and transport

• Preparation of a request letter to extract bamboo with details of particular source to the divisional secretary, details included are Purpose, amount, resource, place, dates of extraction and the ownership with any other important information to have a decision. A certified copy of the Dead of the source needs to be attached to the request letter.

• Issuance of application form to Grama Niladhari(GN- Village Level Administrator) of applicant’s village to fill the application and authentication of provided information with his records.

• With the confirmation of GN the set of the document send to the Regional Forest Officer (RFO) to give his permission after checking the particular lands are not under his control.

• If RFO recommends with other primary requirements matched the permit will be issued with a application processing charge of SLR 188.04(US$ 1.7).

• After extraction applicant should fill another application form to transport of extracted materials. The permit issued to extract bamboo need to be attached to that application form to process the application.

• With the issued application form transportation need to be done within the right duration and the permitted quantity.

11.6 Bamboo resource and large scale production

The main issues are the sustainability of bamboo supplies from the national forests, and the propagation and cultivation of bamboo on a large scale. Before starting projects using bamboo it is recommend starting building up the resource base in Sri Lanka. Because if the industry depends upon the supply from natural forests, it can be expected that exploitation will become unsustainable in the near future. Bamboos would be cultivated much more extensively of enough plans. Large scale plantations and linked mass scale propagation facilities are needed in collaboration with related organizations. Other important concern is that better quality species should be selected to propagation. There are many species introduced to the country with improved qualities compared with local once, those are suitable for special production purposes and rate of growth is relatively high than local once. Following seven species have been cultivated in Sri Lanka: Bambus multiplex, Bambusa vulgari, Dendrocalamus asper, Dendrocalamus gigenteus, Dendrocalamus membranaceus, Dendrocalamus strictus, Thyrsostachys

siamensis.


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11.7 River bank conservation

Bamboo can help reduce the demand for wood from natural forests. It is adaptable to most climatic conditions and soil types, acting as an effective carbon sink and helping to counter the greenhouse effect. It is finding use in land stabilization, to check erosion and conserve soil. It can be grown quickly and easily even on degraded land very quickly. Soil erosion and degradation of watershed areas are major issues in hydrological concerns in Sri Lanka due to unplanned clearing of forest mainly for agriculture, house construction and development programes. Earth slides, riverbank erosion, floods, silt collection in irrigation structures results from above courses. The net-like root system of bamboo effectively protects watersheds by stitching the soil together along fragile riverbanks, deforested areas, and in places prone to earthquakes and mud slides. A wide-spreading root system, uniquely shaped leaves, and dense litter on the forest floor also greatly reduces rain runoff, preventing massive soil erosion and effectively keeping twice as much water, in the watershed. Even Sri Lanka is small country it is having 103 rivers radial out. The collective length of rivers is about 4,560 km. Largest development project in Sri Lanka is Mahaweli development project solely having 10,000 Kms long water streams. Out of that 2500 kms length are cemented banks. Remaining 7500 Kms are earth filled banks and prone to bank erosion. Altogether collective length of banks of waterways around 12,000 Kms. Even if used half of the length of river banks for conservation against erosion, huge length of planting grounds available for bamboo cultivation. MASL started a project to cultivate bamboo along waterways, under their control. The 1st phase will cover planting bamboo alone water streams and expect sustainable extraction utilized for promotion bamboo industry in Sri Lanka. Bamboo plants developed using invitro propagation has good vigour than other traditional plants. Grass like small plants having tiny rhizome which could survive under ground even after totally damage the underground part. River banks are harsh locations for planting bamboo plants at their small age. But as a C4 plant bamboo manages to overcome the environment problems and after established well will have fast growth rate. Space at planting river banks is 15 feet apart triangular arrangement. Established plants create massive network of root in shorter period and gradually bind all rhizomes each together as a network this will absorb the force created by water waves of river in heavy storms protecting the river bank (See figure 10). Developed bamboo bush can be harvested in every year sustainably to cater the demand of any industry.


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Figure 10: River bank conservation

11.8 Bamboo propagation and field planting

Bamboo planting material production is most significant part of the bamboo industry as flower and set seeds once in lifetime in very long flowering cycle such as 30 to 70 years. Less germination percentage of seed such as 2-9% and looses seed viability within 1-2 months restricted propagation from seed. Conventional propagation rhizomes/calm cutting is also difficult since extraction of rhizome is labour-intensive and rhizomes are heavy and bulky material for transportation. Vegetative propagation also time consuming laborious expensive and cumbersome methods. Since the conventional planting material production is limited and slow in-vitro propagation of bamboo is the only solution to meet the planting material demand. Apart from that the bamboo planting material produced through in-vitro culture techniques will be uniform, free from diseases and pests and has about 40% higher vigour than the conventional materials. This will lead to even higher biomass production and thus giving more profit for a unit area.

11.8.1 Mahaweli Authority of Sri Lanka (MASL)

Environment and Forest Conservation Division (EFCD) of MASL in Kothmale uses in-vitro propagation of bamboo for their annual requirement their own and to supply outside growers requirement. Well equipped tissue culture laboratory and a trained staff have been employed for the purpose. Summarized bamboo propagation programme in EFCD has been illustrated in figure 11.


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Figure 11: Invitro propagation flow diagram in EFCD

The Mahaweli Authority of Sri Lanka is one of the major stakeholders of this study as it works in the sector of bamboo propagation and cultivation in mass scale than any organization operates. The main objective of this bamboo propagation aims to river bank protection from erosion from tidal actions of rivers and erosion from loosening down & clumping of banks. New gullies are formed due to lack of vegetative cover along the riverbanks. These issues are directly or indirectly affecting the environmental sustainability of Mahaweli River and also to the objectives of the Mahaweli Development Programme. It is identified that Mahaweli reservoirs (especially Polgolla) are being silted due to catchments erosion including riverbanks. The Mahaweli River is also being further widening.


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11.8.1.1 Riverine Bamboo Project (RBP)

It has also been identified that Bamboo planting at reservoir periphery and riverbanks is one of the greatest solutions to minimize this issue. In addition, bamboo is the fastest growing tree on the earth and good biomass producer. RBP initiated in the presidential secretariat and later transferred to Environment and Forest Conservation Division (EFCD) in MASL with it’s staff. RBP operates now in EFCD in Regional Project Managers (RPM) Office of MASL in Kothmale, Sri Lanka. Coordinates of the RPM office is 178081E and 209045N.

Project History

• Project for propagation of Bamboo for reforesting the banks of the Mahaweli River was initiated by her Excellency the president of Sri Lanka in 1998. (Under the Cabinet Paper 98/1152/01/025 dated 02/06/1998).

• Responsibility of the project was under the Presidential secretariat from June, 1998 to December, 2001.

• Project was handed over to Environmental & Forest Conservation Division of Mahaweli Authority of Sri Lanka in January 2002.

• The first batch of 7000 in vitro plants, ceremonially planted by Honorable Minister Maithripala Sirisena in the embankments of the Mahaweli River at Naranvita on 2nd December, 2006.

• The project is comprises with three phases.

Phases of the project

• Phase I - (1998 to 2007), Establishment of Tissue culture laboratory and Mass propagation of Bamboo (Dendrocalamus Species) by Tissue Culture Technology,

• Phase II - ( 2008 to 2012), Mass propagation of Bamboo and Planting of Bamboo on the bank of the Mahaweli river and main tributaries.

• Phase III - Enterprise development for processing of Bamboo

Objectives Goal of the proposed project Minimizing of bank erosion at Mahaweli river reservoirs

through Bamboo planting - Environment Conservation of Revering Areas and introduce

improved Horticultural crops to Mahaweli settlers. Development of Bamboo Industry and

Horticultural based industry to enhance income of rural poor.

Benefits

• To increase the vegetative barriers to minimise the wave action of river water and to minimise the bulk soil erosion at the riverbanks.

• To improve the vegetative cover “Natural Wall” at the river and reservoir banks within a short duration.

• To enhance the Bamboo productions through this conservation programme.


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• To increase availability of bamboo materials for paper pulp industry /handy crafts, etc.

• To rehabilitate the degraded/abandoned mountain lands in the Catchments.

• Increase income of Mahaweli settlers by providing improved varieties of Horticultural plants to establish in their lands.

Project area

• Riverine area of Mahaweli River / reservoirs and tributaries.

• Degraded and abandoned mountain lands in the Mahaweli watershed.

• Under kala-oya Maha-oya basin relevant districts are Gampaha, Kurunagala district, Puttalama district (Figure 11).

• Riverine areas of Mahaweli Systems of down stream areas and Mahaweli settlements (Figure 12).

• Kala-Oya, Maha-Oya river basins comenced in 2008 under the cabinet paper of 08/0376/315/013 dated on 2008.02.

Figure 12: Planting area under Agrarian Service Department


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Figure 13: Mahaweli development project area

The laboratory plant propergation and field planting programme handled by EFCD has bee pictorially described below in figure series 13 and Figure series 14


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Following pictures describes how tissue culture programme operates in MASL

In the laboratory

Figure 14: Plant propergation and seasoning

Media preparation in the laborotary

Transfer room

Acclimatization of tissue cultured Acclimatization of tissue cultured Acclimatization of tissue cultured Acclimatization of tissue cultured plantsplantsplantsplants

Growth room under conGrowth room under conGrowth room under conGrowth room under controlled trolled trolled trolled environmentenvironmentenvironmentenvironment


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In the field

Figure 15: Nursery and the Field planting

Field Planting Programme

Implement with the government, none government organizations (NGO’S) and Community Based Organizations (CBO’s)-with incentive payment. Payment method for a plant established in the field as follows: Land preparation & field establishment - 65.00 Rs. 59US cents First year maintenance - 25.00 Rs. 23US cents Second year maintenance - 15.00 Rs. 14US cents Total payment -105.00 Rs 96US cents

Acclimatization of tissue cultured Acclimatization of tissue cultured Acclimatization of tissue cultured Acclimatization of tissue cultured plantsplantsplantsplants

Field Planting ProgrammeField Planting ProgrammeField Planting ProgrammeField Planting Programme

FinallyFinallyFinallyFinally


70

Barriers to extension and field planting programme

• Funding arrangements required as some interested parties catered with plants for free of charge and distribution of planting materials.

• Sometimes parties obtained plants were not right planters. This was leads MASL to limit their products to identified receivers developed by them and they convinced some farmer organizations and individual farmers with real interest.

Area of planting Number of Plants Issued Live Plant %

Mahaweli Upper Catchments 2,07,106 60 - 70%

Upper Kothmale Hydropower Project area 65,640 80 – 90%

Mahaweli Zones 47,141 60 – 70%

Mahaoya & Daduruoya 106,624 55– 60%

Total 4,26,511 65 – 75%

Table 28: Progress of field planting in 2010


71

12 RELATED INSTITUTES AND CONTACT INFORMATION

12.1 Forest department

FD is the main state sector organization and has maximum involvement in the industry and they do mainly conservation and extension. There are regional nurseries, which sales bamboo small plants. Presently FD has not involved with propagation of planting material. Majority of bamboo resources are owned by FD. In conservation FD has major role with their regional offices. Extraction of bamboo resources are allowed from forest under obtained permit from the FD and royalty charges should be paid to FD. Illegal extraction has been banned and for such offences extracted products withhold and summon to the court and fined. Illegal extraction and extraction through fraudulent documentations are common in forests even FD tries to protect them and the resource has been depleted fast.

Important details of the FD

Conservator General Mr. M.P.A.U.S.Fernando

Telephone +94-11-2866616

Conservator (Operation) Mr. K.P.Ariyadasa

Telephone +94-11-2866624

Conservator (Research) Mr. A.Hathurusinghe

Telephone +94-11-2866628

Fax +94-11-2866633

E-mail [email protected]

Address No 82, Rajamalwatta, Battaramulla, Sri Lanka

12.2 Department of Wild Life Conservation (DWLC)

Other important land owner is DWLC and lands come under their control are sources of some bamboos. Especially thorny bamboos (Bambusa bambos) spread invasively in their lands in Minneriya National Park. This particular bamboo species invasively spread and has become threat to wildlife specially elephants. DWLC tried with different programmes to protect eradicate the stuff from their lands and asked public tender for the purpose. But still the resource there to utilize for projects such as barbeque charcoal, activated carbon and use as a biomass for power generation. Not only DWLC lands Thorny bamboos are available on the lands come under FD.

Contact Details

Park warden Mr Hettiarachchi Address Minneriya National Park,

Minneriya, Sri lanka Telephone +94 27 2222262

+94 27 3279243


72

12.3 Department of National Botanic Gardens of Sri Lanka(DNBG)

he Department Botanical Gardens of Sri Lanka (DNBGL) is responsible for conservation and promotion of research activities in all living and none living plants in local and exotic. DNBGSL has shown it’s interest in bamboo sector during past years by actively engaging research activities of bamboo propagation. In this study developed plants and established successfully in the botanical garden. At present the department ready to support any programme in the frame of conservation with required funding arrangements said Director General of this department is Dr. D.S.A. Wijesundara. Contact details of Director General of the department as follows: Address Royal Botanic Gardens, Peradeniya, Sri Lanka Telephone/Fax Office +94 81 2388238 Telephone Home +94 81 2388325 E-Mail [email protected]

The DNBGSL has full equipped herbarium which is very useful in species identification, classification and literature. It is usually open 9.00 a.m. to 4.15 p.m. from Monday to Friday; anyone can use the source with prior appointment with Dr. Mrs. A.M.A.S. Attanayake Deputy Director Head of the Herbarium and her staff members. The Human resource of the staff consists as follows:

• Research officer 01

• Operating Officers 02

• Labourers 02 They are ready to provide their service for the interested parties who are having prior appointments and the contact details are as follows: Address Head, Herbarium, National Botanic Gardens of Peradeniya,

Peradeniya. Telephone +94 81 2388053 E - mail [email protected]

Tissue culture laboratory

DNBGSL owns a tissue culture laboratory which provides facilities for research activities, of the department and researchers attached to the department especially from universities. The research supports by the laboratory for entirely conservation purpose as they built for. The head of the unit is Mrs. S. A. Krisnarajah, Deputy Director Floriculture Research positive towards any such programme to support as they owns the technology of invitro multiplication of Bamboo. Following resources owns the laboratory:

Laboratory

Two stories laboratory building attached to the administrative block of the garden, which consists of:


73

Oven 1 Incubator 3 Autoclaves 3 Laminar bench 5 Human resource Research officer 1 Research assistant 1 Programme assistant 1 Lab Assistant 1 Storekeeper 1 Special lab labourers 2 Permenent labour 1 Contract labourers 2 This laboratory has the capacity of producing 100,000 tissue cultured plants per annum. A 90% of the laboratory is uses for ornamental plant production and it’s research purposes. Though the Address Head, Herbarium,National Botanic Gardens of Peradeniya,

Peradeniya.

elephone +94 81 2388053

E- mail [email protected]

Other than that one book was published called Bamboos for housing in Sri Lanka in 1993 by DNBGSL former known as Royal Botanic Gardens Sri Lanka. This book was prepared for printing by forestry information service, FD of Sri Lanka. Authors of this book were D. B. Sumitraarachchi, Upeksha Hettige and N D de Zoysa. Royal Botanical Gardens, National Building Research Organizations and IDRC Bamboo/Rattan Research project of FD were three organizations actively involved and published this book. About 14 verities of bamboo available Sri Lanka at the time of this book published were briefly discussed in this book. Other than that new 21 exotic verities were briefly described based on their important feature for construction industry.

12.4 Nillamba Training and Rural development Centre

The tissue culture laborotary presently abandoned in Nillamba Training and Rural development Centre owned by Samurdhi Authority of Sri Lanka is good resource to cater the demand for massive plantlet requirement of future plantation programmes. The laboratory presently equipped with modern equipments and glassware (table 29 and table 30) but still need providing some missing equipments, glassware and chemicals to operate the laboratory in full. Presently the training centre holds training programmes for Agricultural Research and Development Assistants(ARDA) that are out of the focus of tissue culture technology. Hence the Samurdhy authority planned to remove them and


74

convert the building to an auditorium. All the equipments available for any multiplication programme with or without the authority’s involvement. The laboratory is situated in a village called Nillambe in Kandy district away within 16 Km drive from Galaha Junction at Peradeniya through Gampola Road via Delthota. This particular location is very much suitable for a multiplication programme as the area suited for plantation programmes.

Cotact details

Coordinating officer Mr. K G W Kumarasinghe Telephone Office +94 81 3801889,+94 71 8103310 Address Nillamba Training and Rural development

Centre Nillamba, Sri Lanka Resource base of the training centre

Item Availability

Culture bottles 9190

Caps for culture bottles 750

Vessel (10 L) 1

Vessel (20L) 1

Measuring cylinder (10ml) 1

Measuring cylinder (25 ml) 1








Distilled water containers 10

Bottles (plastic, various sizes) 21

Volumetric flasks (250 ml) 2

Volumetric flasks (1 L) 1

Table 29: Glassware presently available in the laboratory

Item Availability

Laminar hood bench (horizontal air flow, double) 2 Chairs for laminar bench 4

Culture racks (illuminated) 18 (can keep a total of 7776 culture vessels)

Sterilizer (glass bead) 1 Electronic balance (0.1 – 100 g) 1

Electronic balance (100 -1000 g) 1

Magnetic stirrer hot plate 1

Autoclave (large) 1


75

Autoclave (small) 1

Trolleys 2 Tissue homogenizer 1

Clean air curtain (990mm) 2

Clean air curtain (1500 mm) 2

Pouch sealer 1

Voltage stabilizer 1

Generator (standby) 1

Total cost Table 30: Laboratory equipments available in the facility

12.5 Industrial Technology Institute (ITI)

A project had been launched by Industrial Technology Institute (ITI) in collaboration with International Bamboo And Rattan Association(INBAR) The Industrial Technology Institute (ITI) has set up at its premises in Colombo an edible bamboo shoots processing unit, which was inaugurated on 28 October 2009. Bamboo shoot processing equipment for the unit was donated to ITI by the executing agency, the International Centre for Bamboo and Rattan (ICBR), China. The Common Fund Commodities (CFC) is financially supporting the project. The new unit features state-of-the-art canning and vacuum packing machinery facilities. It will now be available for training of the food industrialists to process bamboo shoots. Three varieties of edible bamboo were introduced to Sri Lanka two years ago under the same project: Dendrocalamus latiflorus, Dendrocalamus oldhamii (both from China) and Melocanna baccifera (from Bangladesh). ITI works closely with the Department of Agriculture as their co-partner to implement the production of edible bamboo shoots in Sri Lanka. This is the first time that edible bamboo shoots are introduced to the country, and currently 7 ha of area is under cultivation.

Contact Information

Director General Mr. Mubarak Telephone-Direct +94 22 2691614,+94 22 2379800 Email [email protected] Director Edible bamboo project Dr. Janaki Telephone Direct +94 22 2379814 E-mail [email protected] Ministry of agriculture Partner organization Dr. Hemantha

+94 11 2869553

Field office +94 33 2272186


76

12.6 Mahaweli Authority of Sri lanka

Most important authority in bamboo industry is MASL as they are having modern tissue culture facility, tissue culture programme and field planting programme which is progressing rapidly. Trained staff is capable of produce more planting materials. Director Planning and Monitoring Mr. Chula Wellapili Telephone +94 22 2698957 Director FCMD Mr. Herath Address Mawathura, Kothmale, Sri Lanka Telephone +94 81 2350206 Environment Officer RBP Mr. Jayarathne Telephone +94 22 2698957, +94 77 6759600

12.7 Handicrafts makers

There were number of bamboo handicraft makers in Sri Lanka. Present open market threat from imported cheaper bamboo crafts made them find hard surviving in the industry. Among available producers who make bamboo crafts in international standard contacted for the study.

Hasitha Handicrafts

Business Hasitha Handicrafts Indsutries Name D. Thissa Weerakkody Address Diwurumpitiya, Welikada, Pokunuwita, Horana Telephone +94 34 22 63308, +94 77 6761070 E-mail [email protected] Web www.hasithahandicraft.com

Priyanga Bamboo Craft

Business Priyanga Bamboo Craft Name Nandasena Kalewatta Address No. 125, Aluthgama, Bogama, Yakkala. Telephone +94 33 2287112 +94 33 2285326


77

13 LIST OF COMPANIES AND PRODUCERS

Businesses registered in wood industry with forest department over 12,000 units, which are small, medium and large in scale. Other than those many other individuals engaged in wood industry were not registered under state authorities. Some leading wood industry players are represents wood and wood based industry advisory committee in wood and wood based industry section under MOIC. NCC, CCI, IDB, EDB, and BOI are other organizations keep listing industries in their databases.

13.1 Furniture Manufactures local and export

Furniture manufacturers listed below are main producers and exporters in Sri Lanka. There are many industries not listed here are engaged in wood industry and in this listing fairly covered the crowd for the study. Some companies are produce range of products also have in home wood seasoning facilities that cover their required treated supply and seasoning facilities to the outsiders. Table 31: Furniture producers and exporters in Sri Lanka

No Business and contact name Address Contact details

1 Mr. H. L. C. G. Wijesekara Leema creations (Pvt) Ltd.

14, Hedgest Court, Colombo 10.

+94 11 4722875 +94 71 2202927 [email protected]

2 Mr. T. L. H. Wijesinghe Shakthi Furniture International

45, 2nd Lane, “Model Town’ Rathmalana.

+94 11 2607486

3. W. A. T. B. Wikramarachchi Ro Wood Lanka industries (Pvt) Ltd.

Alawwa Road, Nelumdeniya.

+94 35 2284416 +94 35 2282176 [email protected]

4 Mr. Walter A. Gunasekara Comtech (Pvt) Ltd.

25/5, Barnes Place, Colombo 07.

+94 11 2697692 +94 77 7350876 walterg@eureka .lk

5 Mr. K. Kulathunga Eco-Furni Lanka (Pvt) Ltd.

No.16, Mahakatuwana Road, Galawilawata, Homagama.

+94 71 3176387 +94 11 2857864 +94 11 2703795

6 Mr. Pat Cooray A T Cooray & Sons Manufacture(Pvt) Ltd.

445A, Galle Road, Colombo 03.

+94 11 2582414 +94 11 2581509 +94 11 2710177 [email protected]

7 Mr. Preethi Gunathillake First furniture (Pvt) Ltd,

Bandaragama +94 38 2291949 +94 77 7715337 [email protected]

8 Maj. Douglas Wijesinghe Grip Engineering (Pvt) Ltd.

No. 2, Chelcea Garden, Colombo 03

+94 11 2372761 +94 77 3158213 +94 11 2348167 [email protected]

9 Mr. Lakshman Tilakeratna Bently Merchants International (Pvt) Ltd.

341, Union Place, Colombo 03

+94 11 2335568 +94 11 2223163 +94 71 4725860


78

10 Mr. Rajeew Hendawitharana H. Don Carolis & Sons Ltd.

65, Station Passage, Colombo 02.

+94 11 2338868 +94 11 2323163 +94 71 4725860 [email protected]

11 Mr. Ravi Rodrigo Woodman Lanka (Pvt) Ltd,

105, St. Peters Road, Koralawella, Moratuwa.

+94 11 2658104 +94 11 2651234

12 Mr. Damith Ramanayake DR Manufactering Company (Pvt) Ltd

6th Mile Post, Kandy Road, Nittambuwa

+94 33 2285683

13 Mr. Denzill Aponso Simplex Internatioanl (Pvt) Ltd.

3/2, Wata Mawatha, Piliyandala

+94 11 2613578 [email protected]

14 Miss. M. J. Fernando No. 400, De Soyza Road, Molpe, Moratuwa.

+94 71 4069447

15

Mr. Jude Krishantha Fernanado Wood Crafts

21, Edward Lane, Indebadda, Moratuwa.

+94 72 2919553

16 Mr. Dayasiri De Silva Furnicity Lanka

375, Galle Road, Rawathawatta.

+94 11 2643377 +94 11 2647287 +94 78 5118888

17 Mr. Chandrasiri Fernando New Lakmali Furniture

27, Sri Premarathana Mawatha, Moratumulla, Moratuwa

+94 11 4210148

18 Mr. LuxmanWanniattachi Chemwood Export (Pvt) Ltd.

28th mile post, Highlevel Road, Meegoda.

+94 11 2857010

19 Mr. M. N. A. Perera Nihal Furnishing House (Pvt) Ltd

No. 82, De Soyza Road, Rawathawatta, Moratuwa.

+94 11 2649745 +94 77 7130310

20 Mr. Chandrasiri Fernando Themis Fernando & sons

No 61, Lake crescent, Colombo 02

+94 11 2323044

21 Mr R N Kariyawasam Penthoues International (Pvt) Ltd

No. 12, Dehiwala Road, Boralesgamuwa.

+94 11 2517345 +94 77 7448813

22 Mr. L. H. Chandradasa Design World (Pvt) Ltd

No. 378/3, Batakattara, Piliyandala.

+94 11 2706404

23 Luxmi De Silva Lak Product (Pvt) Ltd.

Kaviraja Mawatha, Panadura.

+94 11 2645337

24 Mr. A. K. U. K. Satharasinghe A Wood Lanka (Pvt) Ltd

No.63, Malapalla, Pannipitiya.

+94 11 2857884 +94 77 7481832

25 Mr. P Cyril Dahanayake Rose Wood Impairs (Pvt) Ltd

83/A, Kohalwila Road, Kelaniya

+94 71 7385571 +94 11 2913959

26 Mr. Premachandra Roopasinghe Multikitchen (Pvt) Ltd

528, Kandy Road, Dalugama, Kelaniya

+94 11 2922355 +94 71 2729938

27 Mr. W. D. Abesekara 292/3, Nidahas Mawatha, KOswatta, Battaramulla.

+94 11 4542251

28 Nitro Lanka (Pvt) Ltd 27, Sri Saddarma Mawatha, Colombo 10.

+94 77 3681168

29 Mr. D. De. S. Dewanarayana Furnicity Lanka

376, Galle Road, Rawathawatta, Moratuwa.

+94 71 8319933

30 Mr. Prasanna Thilakarathne, Alcobrong Engineering (Pvt) Ltd.

130/16, Major Walter Gunawardena Mawatha, Mahara, Kadawatha.

+94 11 2925023

31 Design Workshop Manufacturers (Pvt) Ltd

5th Lane Visaka Estate Ekala Ja-Ela

+94 11 2231868 +94 71 2722106 [email protected]

32 Chemwood Industries Ltd 28 Km H L R Muthuhena +94 11 2857010


79

Rd Meegoda

33

14 Mikeleets Fabrico (Pvt) Ltd

694/3 Kulasewana Rd Kottawa Pannipitiya

+94 11 4309456

34

15 Inter Ocean Trading (Pvt) Ltd

53/5 Bellanwila Divulpitiya Rd Boralesgamuwa

+94 11 2735226 +94 11 2728375 [email protected]

35 Design Workshop Manufacturers (Pvt) Ltd

5th Lane Visaka Estate Ekala Ja-Ela

+94 11 2231868 +94 71 2722106 [email protected]

36 Chemwood Industries Ltd 28 Km Post, High Level Road, Meegoda


37 Mikeleets Fabrico (Pvt) Ltd 694/3 Kulasewana Rd Kottawa Pannipitiya

+94 11 4309456 +94 11 5023152 +94 11 4309457

38 Inter Ocean Trading (Pvt) Ltd 53/5 Bellanwila Divulpitiya Rd Boralesgamuwa


39 Wijaye Wood Craft Lanka (Pvt) Ltd 184 Weda Mw Thumbowila Piliyandala

+94 11 2613927 +94 77 7632207 +94 11 2613927

40 Enex Group Of Companies 29/A Sri Premarathne Mw Moratumulla Moratuwa

+94 11 2654912 +94 11 2653203 +94 11 2652884 [email protected]

41 Nihal Furnishing House (Pvt) Ltd 82 De Soysa Rd Rawatawatta Moratuwa

+94 11 2649745

42 E R L Fernando Ltd 252 Chilaw Rd Negombo +94 31 2222644

43 Koala (Pvt) Ltd 55 Negombo Rd Peliyagoda

+94 11 5323060 +94 11 5323033 [email protected]

44 New Interiors (Pvt) Ltd 53A Kossinnawatta Katuwawala Boralesgamuwa

+94 11 7388133-5 +94 11 4303637-8 [email protected]

45 Nisaco Industries 179 Borella Rd Athurugiriya

+94 11 2561367 +94 11 4527242 +94 11 4408458

46 Alucoating (Pvt) Ltd Abeyratna Mw Makuluduwa Piliyandala

+94 11 2708012

47 Capital Interiors 444 Galle Rd Ratmalana +94 11 2717710

48 Dinesh Furnishing House (Pvt) Ltd 36 De Soysa Rd Rawathawatta Moratuwa

+94 11 2647301

49 Dreams Decor 112/1 Sri Rahula Mw Telawala Mount Lavinia

+94 77 3922315

50 Gamage Steel Furniture (Pvt) Ltd 186/G Yabaraluwa Malwana

+94 11 4404688

51 Kithsiri Furnishing House 31/3 Galpoththa Rd Kadolana Moratuwa

+94 11 2652751

52 Meubel House 08 Daisy Villa Avenue Colombo 04

+94 11 2586770

53 Multi Creations 304 Kandy Rd +94 11 2970506


80

Pahalabiyanwila Kadawatha

54 St Anthonys Furniture 29 Sri Premarathana Mw Moratumulla Moratuwa

+94 11 2652568

55 Sumith Enterprises (Pvt) Ltd 156/A Peradeniya Rd Halloluwa Kandy

+94 81 2492601

56 Woodfield (Pvt) Ltd 1090 Sri Jayawardanapura Rd Rajagiriya

+94 11 2873471

57 Basco Enterprises A 2/3/2 Stureat St Colombo 02

+94 11 3156877

58 Furni Dynamic Engineering (Pvt) Ltd

235 Colombo Rd Pilimathalawa

+94 81 2575797

59 Janitha Furnishers (Pvt) Ltd 240 Negombo Rd Puwakgas handiya Kurunegala


60 Kandy Kitchen Units 232 D S Senanayake St Kandy

+94 81 2202035 +94 81 4920261

61 Nihal Furnishing House 212 De Soysa Rd Moratumulla Moratuwa

+94 11 2652482

62 Sudesh Wickramaratna Enterprises 12 Old Kottawa Rd Mirihana Nugegoda

+94 11 2768567 +94 11 2883116

63 Veneer Creations (Pvt) Ltd 45/1 St Peters Place Colombo 04

+94 11 2599166


81

15.1 Timber flooring companies

Timber flooring including parquet is a small sub sector in wood industry in Sri Lanka. Many of them are provide imported flooring materials made out of wood waste with laminated face. Those suppliers has been removed from the list keeping suppliers who works with local raw materials. Local raw materials are mainly use are Teak and Kumbuk. No Business and contact name Address Contact details

1 Furni Craft No. 73/ B, Negombo Road, Wattala


2 Priyantha S. Dissanayake Elpitiya Life Style Solutions (Pvt) Ltd

73/3, Ward Place, Colombo 07

+94 77 7712683

3 A Brand Wooden Flooring (Pvt) Ltd 24, Dharmapala Place, Rajagiriya

+94 77 3333333

4 Arc Holdings (Pvt.) Ltd 163/2 B, Nawala Rd, Narahenpita Colombo 05

+94 11 5755455

5 Free Lanka Granite (Pvt.) Ltd 48 A, Ward Place, Colombo 07

+94 11 4944638

6 Veneer Creations (Pvt.) Ltd 45/1, St. Peters Place, Bambalapitiya Colombo 04

+94 11 2599166

7 Classique Interiors 69/8, 2nd Lane, Senanayake Avenue, Nawala

+94 11 5744699

8 Mercantile Fortunes (Pvt.) Ltd 236 Galle Rd Colombo 03 +94 11 2343720

Table 32: Companies of wood flooring and parquet

15.2 Timber Treatment facilities

Timber seasonings service providers are small in number in Sri Lanka but many of large scale furniture manufacturers for local and export are having own inbuilt treatment facilities. Sometimes they provide the service for outsiders too. No Business and contact name Address Contact details

1 Finlay Rentokil (Ceylon) (Pvt) Ltd 105/4 Ettampola Watta Rd Hendala Wattala

+94 11 2300794 +94 11 4821429 +94 11 2932945 [email protected]

2 Gamini Furniture Palace Buddhaloka Mw Moratuwa Rd Piliyandala

+94 11 2614595

3 Mr. Jayarathna Superwood export Pvt aLd

Kindelpitiya Road, Millawa.

+94 71 8103066

4 Mr. Ravi Rodrigo Woodman Lanka (Pvt.) Ltd,

105, St. Peters Road, Koralawella, Moratuwa.

+94 11 2658104 +94 11 2651234

Table 33: Companies for timber treatment facilities


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15.3 Paper manufacturers

Paper industry in Sri Lanka is only operated with paper produced on waste paper. Companies listed in are paper manufacturers using waste paper No Business and contact name Address Contact details

1 Neptune Papers (Pvt) Ltd 390 Avissawella Rd Wellampitiya

+94 77 7444555 +94 11 2572141 +94 11 2533253-8 [email protected] [email protected]

2 Monaragala Paper Mill PLC Kuliyapitiya Rd Nattandiya


3

Saveco Paper Corporation (Pvt) Ltd 292 High Level Rd Kirulapone Colombo 06

+94 11 4527447

Table 34: companies for Paper manufacturers

15.4 MDF and particle board manufacturer

MDF manufacturers I found is only Merbok in Sri Lanka and export 90% of the production and 10% released to the local market. Leading Particle board manufacturer in Sri Lanka is DAMRO and the total production utilizes inhouse for furniture production. 1 Mr Thushan Joachim

Merbok Mdf Lanka (Pvt) Ltd

Boi Horana Epz Perth Estate Ratnapura Rd Horana



83

16 WOODY RAW MATERIALS IMPORT AND EXPORT

Imports and exports of forest products of Sri Lanka have been extracted from the FAO yearbook of forest products 2009. In that document gives important information regarding local production, Consumption, Imports and exports of forest products in each category separately. In the table 31 All the financial information reported in US$ “000” and Cubic meters has been recorded “000” tons. Figure illustrates the total monitory value comparison of forest product imports and exports. According to the graph overall export and import performance came down gradually from 2005 to 2006. This is due to may be conflict occurs during last few years together with world economic recession. From year 2007 the rates of imports and export start rising highly. In the future it could be expected gradual rising of forest product imports and exports. With planned development programmed require more raw materials than never and exports will also increase in the future but it will take some time to form businesses and take time to expanded plantation forestry come into their harvesting age.

0

50000

100000

150000

200000

250000

300000

350000

400000

2004 2005 2006 2007 2008

Year

Imports and export of forest products

Exports

Imports

Figure 16: Export and import of forest products of Sri Lanka

Table 31 below listed 5 years data from 2004 to 2008 in respect of production, consumption, imports and Exports. All those figures are in under 11 categories under “000” tons.

Forest products imports and exports (1000$) 2004 2005 2006 2007 2008

Imports 204744 204744 132019 216778 319373

Exports 33736 33736 17215 34468 54640

Roundwood production CUM"000" Production 6340 6278 6278 6125 6051

Consumption 6326 6264 6277 6122 6048


84

Imports 1 1 2 1 0

Exports 15 15 3 4 3

Wood Fuel, Including Wood for Charcoal Production 5646 5584 5584 5431 5357

Consumption 5646 5584 5584 5431 5357

Industrial Round wood-Wood in the Rough Production 694 694 694 694 694

Consumption 680 680 693 691 691

Imports 1 1 1 1 0

Exports 15 15 3 3 3

Exp value 1102 1102 614 1436 944

Industrial Round wood-Wood in the Rough (NC) Tropical

Exports 3 3 3 1 0

Saw logs and Veneer Logs

production 117 117 117 117 117

Saw logs and Veneer Logs(NC)

Production 94 94 94 94 94

Other Industrial round wood

Production 577 577 577 577 577

Other Industrial round wood(NC)

Production 577 577 577 577 577

Wood Charcoal


Consumption 1 1 -2 4 10

Imports 0 0 0 5 12

Export 0 0 4 2 3

Wood residues


Consumption 4 4 3 2 1

Imports 2 2 0 0 0

Exports 1 1 0 1 2

Sawnwood


Consumption 104 104 90 78 82

Imports 44 44 30 17 23

Exports 1 1 0 0 2

Table 35: Imports and exports of forest products


85

17 REFERENCES

Amarasekara, H.S.(1995), Alternative Timber Species – A review of their properties and uses, Forestry For Development, Proceedings of The Annual Forestry Symposium, University of Sri Jayawardenepura

Forestry Department, (2001), Country Report Food and Agriculture Organization, Rome, Italy

Jayaneththi, L., Follett, P., (1998), Bamboo in Construction-an introduction, TRADA technology Limited, International Network for Bamboo and Rattan, Department for International Development. 3-11

Jayasekara, P. (1995), Conservation Through preservation, Forestry for Development, Proceedings of The Annual Forestry Symposium, University of Sri Jayawardenepura

Jayasuriya, A. H. M., Kitchener, D, and Biradar, C. M. (2006), Portfolio of strategic conservation sites/protected area gap analysis in Sri Lnaka, Department of Wildlife Conservation. 15-21

Kariyawasam, D, (1995), Bamboo resources and utilization in Sri Lanka, Ministry of Forestry, Watershed Management, Sampathpaya, Battaramula, Colombo

Munasinghe, J. E. (2003), State of Forest Genetic Resources Conservation and Management in Sri Lanka, FAO, Rome, Italy

Performance report, (2009), Forest Department of Sri Lanka, Sampathpaya, Rajamalwatta, Battaramulla. 51-61

Ramanayake, S. M. S. D. (2006), Flowering in Bamboo: An Enigma, Institute of Fundamental Studie, Hanthana Road, Kandy

Ruwanpathirana, N. D.(2008), Timber Utilization of Sri Lanka: Development in Forestry and Environment Management in Sri Lanka, Silver Jubilee proceedings of University of Sri Jayawardenepura

Sri Lanka Forestry Outlook Study, (2009) Prepared by Forest Department of Sri Lanka, Food and Agriculture Organization of the United Nations, Regional office for Asia and the Pacific, Bangkok

Sri Lanka Forestry Sector Master Plan(1995), Forestry Planning Unit, Ministry of Agriculture, Land and Forestry, Sri Lanka

Sumithraarachchi, D. B., Hettige, U. and Zoysa N. D De., (1993), Bamboos for Housing Sri Lanka, Royal Botanic Gardens, Peradeniya. 6 -35

Zoysa, N.D. (1991), Ochlandra stridula Moon ex Thw- Profile, Bamboo in the Asia Pacific, Proceedings 4th International bamboo Workshop, 1991


86

18 ANNEX 01: EXTRACTION OF HS CODES OF SRI LANKA


87

19 A

NNEX 02

Area of forest plantations -1999/ha

District

Species

Conifers

Eucaliptus

Teak

Mahogany

Dipterocaapus

Albizzia

Alastonia

Accasia

Mixed

Margosa

total

Ampara

61

4572.4

4633.4

Amuradhapura

604.2

3606.4

292.4

922.7

5425.7

Badulla

3266.2

3692.3

75.6

7034.1

Batticaloa

4002.8

4002.8

Colombo

360.9

12.5

2.3

375.7

Galle

703.7

124

32.1

859.8

Gampaha

109.6

106.9

475.8

12.5

72

48.8

825.6

Hambantota

349.4

2467.4

1087.7

72.7

137.2

111.5

16.1

4242

Jaffna

123.7

123.7

Kaluthara

597.6

36.8

14.6

84.5

733.5

Kandy

3254

759.8

19.1

4032.9

Kegalle

170.1

91.2

823.6

83.5

246.2

67.3

1481.9

Kilinochchi

0

Kurunegala

1305.7

3112

3630

170

222.8

12.3

8452.8

Mannar

121

121

Matale

925.5

796.6

1500

311.1

77.4

3610.6

Matara

1268.1

29.3

42

264.5

1603.9

Moneragala

35

788.8

5023.8

84.3

24

310.1

6266

Mulllaittivu

40.3

1823.3

1863.6

Nuwara Eliya

2797.1

6113

6.4

8916.5

Polonnaruwa

1131.2

2806.6

43.9

3981.7

Puttalam

2455.7

4978.7

218.1

129.7

37.1

52.3

7871.6

Rathnapura

1961.9

4.5

400.8

65.3

281.4

112.1

21.3

7.3

2854.6

Trincomalee

152.1

337.7

489.8

Vavnia

137.6

137.6

Total

15922.8

20493.1

33624.1

5254.8

12.5

751.4

250.7

1646.1

1594.5

390.8

79940.8

study on sri lanka forest wood & paper (incl. bamboo) product...

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