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Concerns Raised by the Condominium Developers Association of Sri Lanka (CDASL) Over Proposed Protectionist Measures in the Tile Industry

The Condominium Developers Association of Sri Lanka (CDASL) expresses profound concern regarding recent proposals advocating protectionist measures in the tile industry, particularly Mr. Mizver Makeen’s call for anti-dumping laws targeting the import of Floor and Wall Tiles. Mr. Makeen’s association with Mac Tiles raises questions about the potential self-serving nature of his remarks. Furthermore, the CDASL emphasizes that hasty implementation of such proposals could have extensive repercussions for both industry stakeholders and the general public.

At the core of the matter is the absence of substantiated evidence supporting claims of “dumping.” The lack of concrete proof raises suspicions about the motives behind these allegations and the potential for unintended consequences. The proposed measures also overlook the detrimental impact of monopolistic practices, a longstanding issue in the housing, construction, and condominium industries in Sri Lanka.

Monopolistic practices not only suppress competition but also impede innovation and quality advancements. By limiting consumer choice and exploiting market dominance, these practices escalate costs and erode trust in the industry. Moreover, they hinder sector growth and sustainability, impeding overall progress and economic development.

The escalating costs of tiles pose significant challenges for construction projects, affecting the affordability and accessibility of housing and commercial properties. This trend intensifies financial strains on developers and contractors and undermines broader goals of social stability and economic growth. Addressing the root causes of high costs becomes crucial for fostering inclusive communities and driving prosperity.

In light of these concerns, the CDASL advocates for a balanced approach to policymaking that considers the interests of both consumers and local manufacturers. While protecting domestic industries is vital, it should not come at the expense of consumer welfare or market fairness. Proposed measures must be evidence-based and transparent, with a clear understanding of their potential impacts on industry dynamics and consumer choice.

Addressing the issue of “reverse dumping” is equally critical for maintaining market integrity and competitiveness. Unjustified price surges undermine fair trade principles and necessitate proactive regulatory intervention to safeguard consumer interests.

The CDASL questions the rationale behind extending favoritism to feeder industries lacking substantial export earnings or workforce engagement. Such policies distort market dynamics and hinder the growth potential of the housing and construction sector. By reevaluating these policies, policymakers can create a more conducive environment for sustainable development and economic prosperity.

The CDASL believes that promoting a competitive and open market environment is crucial for fostering innovation and driving long-term growth. Encouraging competition and entrepreneurship can lead to investments in research and development, technological advancements, and product diversification. A vibrant raw materials market, including tiles, benefits consumers and contributes to the country’s economic resilience and competitiveness on the global stage. Regulatory interventions should aim to strike a balance between protecting domestic interests and promoting a level playing field for innovation and sustainable growth.

As a representative body within the industry, the CDASL underscores the importance of responsible decision-making and thorough evaluation of proposed measures. It calls for dialogue and collaboration among stakeholders to find solutions that support long-term growth and competitiveness. Through collective efforts, the CDASL believes that Sri Lanka can build a stronger, more resilient industry benefiting all citizens and contributing to broader economic well-being.

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