Like its peers, the Sri Lankan rubber industry has been hard hit by the COVID 19. However, the pandemics will bring some opportunities to the sector, believes Ravi Dadlani, Chairman of the Sri Lanka Association of Manufacturers and Exporters of Rubber Products (SLAMERP), and MD of CEAT Kelani Holdings. “The demand for PPE is high and will be sustained in time to come until COVID 19 is no longer a pandemic. Especially gloves and other wearables made of rubber will be a good area for the Sri Lankan rubber industry to focus on,” says Dadlani an interview with Tyre Trends.

How do you see the impact of COVID 19 on Sri Lanka’s rubber industry?

Sri Lanka, like all exporting countries, have been largely impacted. The shutdown has caused a tremendous loss both in terms of production and the subsequent shut down of countries resulting in the cancellation of orders widely across the tyre industry. We are concerned that the impact fully on the industry is still to be realised. We will, once the supply chain and the related industries come back online, be able to quantify the extent of the impact. We are however positive that the Sri Lanka rubber industry is poised to benefit from the need arising from the COVID 19 impact. Especially the demand for PPE is high and will be sustained in time to come until COVID 19 is no longer a pandemic. Especially gloves and other wearables made of rubber will be a good area for the Sri Lankan rubber industry to focus on. Also, the government suspension of importing of tyres is poised to increase demand for domestic manufacturers of tyres at least in the short term, which will be a boost to the local rubber industry. Impact on the loss of exports and the timings of the opening of overseas markets would be critical at this point. 

The rubber industry has always been the country’s one of the main sectors and exporters. Do you think that the industry currently is being explored to its fullest potential?

There is a lot of potential for rubber in Sri Lanka. The need to increase the production of rubber through productivity improvements and the need to extend the rubber growing acreage is critical at this time. We have leading manufacturers of international repute and strong local manufacturers catering to export markets both in the tyre and gloves segments. 

The country also has the potential to enter new markets and customer segments with new products. There is more that needs to be done in terms of R&D and technological collaborations to enter high-value rubber-based product segments. With major global brands producing in Sri Lanka, we have a greater ability to increase trading activity and improve international sales as a regional hub for the industry.

What kind of support do you expect from the government and industry-related bodies for the long term?

Firstly, the rubber sector was the first to benefit from the priority given by the government initiative to commence operations. The sector benefited by the fast track approval to be classified as an essential sector. We expect the government to continue to have consistency when it comes to policy matters. We are also seeing a strong support base coming in terms of the Board of Investment and the Export Development Board for the rubber cluster. We need to fast track the planned policy-based approach of increasing rubber production in the country through the rubber master plan, with incentives if need be for plantations to spearhead this initiative. Also, research and development on rubber yield increase, all-weather rubber tapping techniques need to be introduced with governments thrust towards increasing rubber production.

There should also be incentives for exporters to invest in high-value rubber product manufacturing. We expect the government to educate the smallholders with international best practices to manage the rubber crop for better yield and output through RDD & RRI as key government institutions. The industry prefers to buy more local rubber, but there is a shortfall every year vs the demand. We also need to drive the public-private partnership research & development and must invest more in laboratory and testing facilities to provide certifications that are required for the export markets within Sri Lanka. The Government will also need to look at domestic supply chain inefficiencies which may hold back on the growth potential of the industry.

When we talk about tyres, how does the Sri Lankan tyre industry make its mark globally, especially in the solid tyre segment?

Absolutely it does. Sri Lanka is considered market leaders in certain categories of the solid tyre export segment. There are the numbers of global and local companies operating out of Sri Lanka holding a good foothold in the global solid tyre market. The global rubber industry is worth around USD 400 billion, out of which 65% is the tyre industry, given this, we have a market that we can increase our supply of both off road and on-road tyres, Sri Lanka has aggressively ventured into the global pneumatic agriculture, Off-road and industrial tyre segment which is estimated at USD 44b. We are confident that this position of strength will be maintained in the future, too in these segments. 

What are the challenges for tyre and rubber goods, especially for small and medium enterprises?

Key is the availability of rubber at consistent prices at the right quantities throughout the year. Currently, the industry is hampered with weather-related shortfalls in production coupled with plantations moving away from rubber and more profitable ventures depleting the total output. We consume 140,000 MT, and the local production is at 75,000 MT. Addressing these two areas will result in a stable supply of rubber for industries. It is very important that SMEs adopt technology and increase productivity and production to cater to the demand for rubber. 

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Wind, a leading financial data provider, has released its 2025 ESG (Environmental, Social and Governance) ratings, showcasing notable improvements for several listed companies under Sinochem Group. The ratings reflect these companies' strong commitment to sustainable development and corporate responsibility.

Sinochem International achieved an AA rating in 2025, a significant improvement from its previous rating in 2024. With a comprehensive score of 8.56 out of 10, the company now holds the highest ESG rating in the diversified industrial sector, setting a new record among Sinochem Group’s listed companies. Sinochem Equipment and Shenyang Chemical also demonstrated substantial progress, with both companies upgrading from a BBB rating in 2024 to an A rating in 2025. These improvements underscore the group-wide advancements in sustainability practices.

The upgrades highlight Sinochem Group’s intensified focus on sustainability initiatives, including enhanced environmental compliance, green transition efforts, stronger corporate governance and improved transparency. Additionally, the companies have made strides in social responsibility programmes, such as worker welfare and community engagement.

The ESG rating jumps for Sinochem International, Sinochem Equipment and Shenyang Chemical underscore Sinochem Group’s leadership in sustainable business practices. As China continues to push for carbon neutrality and ESG integration, these companies are well-positioned for long-term growth and resilience.

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Covestro has introduced its next-generation Baysafe BEF flame-retardant polyurethane foam, a breakthrough in EV battery safety. Designed to prevent thermal runaway propagation between cells, this lightweight foam meets stringent global safety demands, particularly in China, where the new GB 38031-2025 standard will require fireproof batteries from 2026.

As the world’s largest EV market, China’s regulations are expected to influence global standards, making Covestro’s innovation critical for automakers. The foam’s superior flame resistance enhances safety in EVs, e-bikes and portable energy storage, addressing a key consumer concern. By combining cutting-edge flame-retardant technology with lightweight performance, the Baysafe BEF series helps drive the transition to sustainable transportation and energy storage worldwide.

With EV adoption accelerating, Covestro’s material solutions support manufacturers in meeting stricter safety requirements while enabling international expansion. Beyond encapsulation, the company offers polyurethane-based battery covers and shock-absorbing components, strengthening its position in the fast-growing new energy sector.

Akhil Singhania, Global Head of PU Specialties in Covestro’s Tailored Urethanes Business Entity, said, “This innovation represents a significant step towards enabling sustainable mobility through enhanced safety. By launching our advanced flame-retardant technology, Covestro reaffirms its commitment to innovation and strengthens our product portfolio to meet the evolving needs of the EV industry.”

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Zeon Corporation has announced the development of Nipol BR1300, a novel hydrophilic styrene butadiene rubber (SBR) for winter tyres. Synthesised with a polybutadiene rubber base, the material delivers unprecedented hydrophilicity for tyre applications. Commercial production began in May 2025 at Zeon’s Tokuyama plant in Yamaguchi Prefecture.

As part of its strategic portfolio optimization, Zeon plans to phase out low-profitability products like ESBR-1 and NBR latex by 2026. However, it will continue manufacturing high-margin products, including ESBR-2, nitrile butadiene rubber and solution SBR. This shift underscores Zeon’s focus on advanced, value-driven rubber solutions.

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Covestro India has entered into a strategic collaboration with CSIR-National Chemical Laboratory (NCL) through an innovative CSR initiative focused on developing sustainable upcycling technologies for polyurethane waste. This partnership aims to overcome existing recycling limitations by transforming discarded polyurethane materials into valuable chemical feedstocks, potentially revolutionising the material's circular economy.

This collaboration underscores both organisations' commitment to environmental innovation, leveraging NCL's advanced research infrastructure and Covestro's market leadership to address critical gaps in plastic circularity. Current polyurethane recycling methods, predominantly mechanical with some emerging chemical processes, face substantial challenges including material degradation, high energy consumption and hazardous byproduct generation. The project seeks to develop commercially viable chemical recycling solutions that maintain material integrity while minimising environmental impact.

Polyurethanes, widely used in furniture, automotive parts and insulation, present unique recycling difficulties due to their complex molecular structure. Most end up in landfills after use, creating significant sustainability challenges. By combining Covestro's industrial expertise with NCL's seven decades of chemical research excellence, the partnership aims to create breakthrough upcycling technologies.

Avinash Bagdi, Director & Head of Sales & MD Solutions India & Projects – Tailored Urethanes, said, "This partnership strengthens our commitment to finding innovative solutions for polyurethane waste and directly supports Covestro's vision of becoming fully circular. By developing effective methods to upcycle polyurethanes, we're taking concrete steps towards creating a more sustainable future in line with our corporate vision of driving the transition to a circular economy."

Dr Ashish Lele, Director of NCL, said, "CSIR-National Chemical Laboratory is excited to partner with Covestro (India) in this groundbreaking initiative to develop novel chemical upcycling methods for polyurethane waste. The conventional and electrochemical strategies we're developing address the critical limitations of current recycling technologies and align perfectly with our shared vision of a circular economy. This collaboration represents a significant step towards sustainable plastic management in India and globally, with potential to transform polyurethane waste into valuable chemical resources."

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