Sri Lankan Tile Maker Sees Clay Shortages

Colombo, Sri Lanka, June 22, 2011 -- Sri Lankan tile manufacturer Royal Ceramics says delays in issuing government mining licences has created clay shortages and it might be forced to import raw materials at higher cost.

"Our production lines continued to be dogged by high energy costs and shortages of vital raw materials including ball clay and feldspar which are used to manufacture tiles," Royal Ceramics managing director Nimal Perera told shareholders in the firm's annual report.

Raw materials, which account for about 15 percent of costs, are bought from local suppliers who face capacity shortages, Perera said.