UK expert to inaugurate handloom design program

Lanka Business Today - 30/06/2014

A programme on ‘Design Development for Sri Lanka’s Handlooms’ will take place at the Export Development Board auditorium today, June 30 at 9.30am.

It will be inaugurated by International Design Expert Ms Jennifer Shellard of the United Kingdom.

Sri Lanka's handloom textile industry is centuries old, the 6th century BC according to Mahavansa, when Prince Vijaya from India landed at Manthota (Mannar) in Sri Lanka. History records that when he found Kuveni, whom he eventually married, she was spinning yarn. And that tradition continues to the present era as weaving handloom textiles.

The industry has helped showcase the undying creativity of generations of Sri Lankans taking them to the international arena. A range of designs and colours, individual and innovative designs, craftsmanship, colour combination and patterns have been handed down from generation to generation.

According to a spokesperson of the Export Development Board, the handloom textile industry is a highly labour-intensive export-oriented rural-based industry in Sri Lanka. The industry produces predominantly cotton and silk products, utilizing cotton and silk yarn.  Generally, with low capital costs and running expenses, handloom is a household or cottage industry, where skilled hands create value added products.

Another feature is that the industry has the flexibility to supply in small quantities as well as larger quantities and styles to individual tastes and requirements of different buyers from various cultures. There is an immense potential for use of alternative raw materials, abundantly available in Sri Lanka, said the spokesperson.

“The industry employment to around l5,000 persons withe around 962 manufacturers engaged in the industry,” added the spokesperson.

The mix of manufacturers includes leading handloom weaving manufacturers as well as small scale producers. The leading producers had been able to grasp the international market and also have been able to successfully cater to the local tourist market.

Exports include a wide range products such as soft toys made out of handloom fabrics. bed linen, table linen, kitchen Linen bath Linen, upholstery and dress fabric, curtaining, readymade garments, hand woven rugs, tapestries etc. and stationery items such as books, notebooks, albums and writing pads made with handcrafted exteriors. These items are designed for niche markets where hand made products of high value are preferred.

Sri Lankan handloom producers are capable of supplying numerous products to markets such as Italy, Germany, France, UK, Norway, Netherlands, Japan, Korea and Maldives. Sri Lanka has exported handloom textile products to the value of US $ 1,539,623 in 2011.

Awareness of modern design trends, combined with traditional craftsmanship and the influx of new processing techniques, Sri Lankan handlooms have been given a new life. The industry has gained a dominant identity and a foothold in the competitive international market.

Handloom products are completely sustainable and use eco-friendly raw material and internationally accepted quality standards are maintained. Thus, there is a great opportunity for the Sri Lankan handloom industry to flourish.

The Health Benefits of Ceylon Tea

Ceylon tea is prized for its rich aroma and taste, but it also has many health benefits. This tea is grown in Sri Lanka (formally Ceylon), and is a relatively new crop there, only taking off in the mid-1800s. Ceylon tea comes in the same black, green and white varieties that are grown elsewhere, although each has subtle differences in flavor to other teas. Black tea is the most  widely produced and recognized and has citrus overtones. Ceylon green tea has a much stronger flavor than other green teas and is considered an acquired taste. Ceylon white tea is highly prized and said to taste of honey. Ceylon teas have much the same health benefits as regular tea, and are generally purchased for their superior quality and flavor.

Sri Lanka to achieve the apparel export target of 10 billion US dollar by 2016

Sri Lanka’s apparel makers have starting feel the need to popularize their brand among the local people as it has shown a grown of 10 percent in the domestic industry from the last year. There is a scope to further enhance the market as a huge untapped market locally exist, which needs to be addressed and cater good quality garments for an affordable price.

Indradatta Dharmawardane, President of Sri Lanka Apparel Brands Association speaking at the launch of Sri Lanka Apparel Brands Association (SLABA), which was rebranding the Domestic Garment Manufacturers Association (DGMA) founded by the late A Y S Gnanam said that they are currently targeting a bigger share of an estimated two billion US dollar domestic market.

20 HEALTH BENEFITS OF CINNAMON

We find the evidence backed with hard research on why Cinnamon maybe the solution for blood sugar control, weight loss, alertness, creating natural disinfectants, cancer prevention, IBS and much more. Take a closer look at the evidence. It is compelling.

The FDA has not approved Cinnamon to cure any medical condition. This information is presented for informational purposes and is not intended to treat, diagnose or cure any illness. Consult a physician before taking any Cinnamon.

EDB starts work on latest global market Fairtrade call

Daily FT - 25/06/2014

• Enlists former global FT head Myers for initiative
• Pilots Fairtrade certification support in Sri Lanka for exporters
• First sector: Crafts & Lifestyle exports
• Midaya Ceramic, Kandygs, among shortlisted
• Crafts & Lifestyle exports up by 25%

Paul Myers, the visiting USAID/VEGA Fairtrade Expert visits a craft-maker in Piliyandala.

As Fairtrade becomes the latest sales driver in international markets, Sri Lanka has stepped up its efforts to meet the new standard. A promising Lankan export niche has become the successful testing ground for Sri Lanka’s entry into global Fairtrade certification regime – and the EDB, which leads the initiative, has received encouraging feedback from many – including a global consultant on Fairtrade.
“I am impressed of Sri Lanka’s craft makers and exporters. Their products are of high quality,” said a satisfied Paul Myers, the visiting USAID/VEGA Fairtrade Expert on 19 June at EDB, Colombo.

Fairtrade Expert Myers was making his concluding remarks on his three weeks’ long consultation visit to Sri Lanka to assist EDB’s first Fairtrade initiative. The first ever national initiative on Fairtrade in the country, the programme aims to introduce and implement Fairtrade concepts for the craft sector in Sri Lanka for a period of 2-3 years. The first stage of the three stage program was already concluded in 2013.

Nine firms, Midaya Ceramic, Kandygs Handlooms, Island Craft, Suntex Weaving Industries, Earth Bound Creations, Trickledown, Maximus, Selective Designs, and Pung Craft have succeeded in clinching EDB’s support to apply for Fairtrade certifications in this first initiative.

The Fairtrade Certification has been identified as one of the tools for the sustainable economic development of the world and defined as an alternative approach for conventional international trade. Fair trade certification mark now appears in thousands of products in international markets, and in Germany, where more and more consumers insist on fair trade certifications, revenues of such products increased by 22% in 2013. In UK, Fairtrade products saw a 19% increase on sales in 2012.

“I have visited several craft makers in Sri Lanka including some handloom makers. I am impressed of the craft makers and exporters whom I met. Their products are of high quality and in par with international standards. Also, the initial preparatory work on Fair Trade of most participating companies in this project too has been highly encouraging,” Myers said on 19 June.

According to the EDB, the total lifestyle and craft exports that stood at $ 78 million in 2011, has increased to $ 97.3 million, a 25% growth. EDB believes that this niche export sector to be promising when it comes to the premium end of global accessories and lifestyle markets.

Craft sector in Sri Lanka is mainly a cottage based industry and comprised of small and medium entrepreneurs. The crafts of Sri Lanka are a combination of the traditional skills and modern technology.
This industry directly contributes to the social development in the rural communities and assists them for better income and more importantly, is instrumental in absorbing the rural talents and capabilities to the export mainstream.

According to the EDB, the Sri Lankan craft products are manufactured targeting the niche export market where mass production is not required. Sri Lanka is also a signatory to all International Labour Conventions under the International Labour Organisation (ILO) in this context the EDB believes that introducing Fair Trade concept to the Sri Lanka craft sector will enable manufacturers to market their products to the demanding niche markets and receive a premium price.

With a view to promote Fair Trade as a marketing tool among identified craft manufacturers in Sri Lanka and facilitate them to export their products under Fair Trade label targeting the niche export market, EDB  commenced the implementation of a programme to introduce and implement Fair Trade for Sri Lanka’s craft sector starting 2013. EDB has also successfully concluded its Fairtrade awareness session in Batticaloa with 45 participants-which included even deserving widows in the area working on handlooms and crafts.
Many beneficiaries of EDB’s Fairtrade support were upbeat of the prospects. Midaya Ceramic Managing Director Anura Warnakulasooriya said: “This is a good initiative. This certification gives us an extra advantage and helps us to look better – it differentiates us from other manufacturers. But we need to look at costs – if we can get government’s support on the cost of getting and maintaining the certification, it will be very helpful.” Midaya Ceramic is Sri Lanka’s oldest ceramicware firm. The only company with such a large speciality ceramic portfolio in the country, its exports are in the markets of demand in the UK, Holland, Germany, France, Belgium, Norway and USA.

Awareness seminar/workshop on cut foliage and flowers for the export market for export oriented out growers in NW province

The North Western Provincial office of the SLEDB, successfully conducted the awareness seminar/workshop on Cut foliage & flowers for the export Market on 20th June 2014 in the auditorium of District Secretariat-Kurunegala with the participation of 102 Cut foliage & Flowers out growers in North Western Province. The programme was organized by NWP-EDB with the assistance of Department of Agriculture.

The main objective of conducting this seminar was to increase the capacity of export oriented cut foliage out growers in the Province by way of enhancing Technical/Market awareness and facilitating linkages between out growers and exporters in order to develop consolidated supply base of quality Cut foliage & flowers for exports from Regions.

At this seminar, Mr K.P Priyantha, an Agriculture Instructor of the Department of Agriculture took part as a resource person & delivered a presentation on Cultivation of quality cut foliage & flowers for the export market, giving more emphasis to the technical aspects regarding the field. Participants made aware on the export potential cut foliage verities where they could gain lot of opportunities by sub contacting these supplies for the export market.

In addition NWP-EDB made arrangements to get the service of an export company for the seminar as a resource person with the intention of providing practical experience on the sector for participants.   In response to request made by the EDB, Ms. Chandima Alahakoon-Director of Dulvin Flowers & Nursery Pvt Ltd. a leading cut foliage exporter in the industry delivered a presentation on new trends of Cut foliage & flowers in the international market and significance of quality requirements of supplying cut foliage for the export market. Moreover, out growers made aware on regular problems face by exporters when supplying cut foliage & flowers for the export market. She expressed that there is a massive demand for some cut foliage varieties from Sri Lanka in the international market & encouraged out growers by giving the assurance of market availability.

Therefore, this event offered certainly an excellent opportunity for export oriented cut foliage & flowers out growers in the North Western Province and also to achieve EDB’s main objective of conducting the seminar. The NWP-EDB is intending to facilitate to establish linkages between out growers & exporters & provide necessary training with the assistance of respective institutes to develop consolidated supply base of quality cut foliage & flowers for the export market from Regions as an upcoming activity of this programme.

Sri Lanka shines at 2nd China-South Asia Expo in Kunming

Daily FT - 24/06/2014

The Sri Lanka Export Development Board (SLEDB) in collaboration with the Embassy of Sri Lanka in Beijing organised the Sri Lanka Pavilion at the 2nd China-South Asia Expo in Kunming, China from 6 to 10 June with the participation of 135 Sri Lankan companies, displaying and promoting Sri Lankan product sectors such as gems and jewellery, tea, batik, handicraft, coir products, Ayurvedic products and giftware.
Minister of Industry and Commerce Rishad Bathiudeen ceremonially opened the Sri Lanka Pavilion at the expo and delivered the keynote address at the 9th China-South Asia Business Forum held on the sidelines of the 2nd China-South Asia Expo.

In his speech, the Minister highlighted the enormous potential for further promotion of trade and investment between Sri Lanka and China, before a large gathering of business entrepreneurs representing South Asia and the South East Asia region.

Deputy Speaker of Parliament Chandima Weerakkody, representing the Government of Sri Lanka, participated in the Opening Ceremony of the 2nd China-South Asia Expo. At a meeting with the Chinese Vice Premier Wang Yang, on the sidelines of the Kunming Expo, the Deputy Speaker sought the continued support and cooperation of China for further expansion of trade and commerce between the two countries.
Vice Premier Wang Yang, while commending Sri Lanka’s active participation at the expo, expressed the hope that the proposed FTA between the two countries would contribute greatly towards the expansion of bilateral trade between China and Sri Lanka.

Also on the sidelines of the 2nd China-South Asia Expo, the 6th Session of the Joint Committee on Trade and Economic Cooperation between China and Sri Lanka was held in Kunming on 7 June. Ministry of Finance and Planning Secretary Dr. P. B. Jayasundera led the Sri Lanka delegation and Vice Minister of Commerce Gao Yan led the Chinese delegation. A wide range of issues relating to Sri Lanka-China trade and economic cooperation was discussed by the two sides at the meeting.  Ambassador of Sri Lanka to China Ranjith Uyangoda, Secretary to the Ministry of Industry and Commerce Anura Siriwardena, Director General of Commerce R.D.S. Kumararatne, EDB Executive Director Dr. Yousuf Kachchi Maraikkar and senior officials from the Ministries of Finance and Planning and Industry and Commerce, the Department of Commerce, the Embassy of Sri Lanka in Beijing and the Consul of Sri Lanka in Chengdu participated in the events.

Dutch push for Lanka’s hi-tech exports

Asian Tribune - 23/06/2014

From far right: M.K.S.K Maldeniya (EDB’s ICT Sector Director), Joost vander Kooij and Onno Roukens (the CBI professional consultants from Netherlands) nod in agreement with Bandula Egodage (Chairman/CEO of EDB) as he addresses interactive session “Website Enhancement and Online Marketing ITO/BPO” on 19 June organised by the EDB for Sri Lankan software manufacturing and export firms.

Sri Lanka is leveraging ICT exports to achieve its $20 B goal of 2020. And a new support initiative by the Netherlands is set to elevate Lankan software exporters to latest tech developments. “The government is highly focused on ICT sector as a forex earner and export driver. We cannot ignore ICT if we are to achieve any progress” said Bandula Egodage (Chairman/CEO of EDB) on 19 June in Colombo.

Chairman Egodage was addressing the two day-hands on interactive session “Website Enhancement and Online Marketing ITO/BPO” organised by the EDB for Sri Lankan software manufacturing and export firms. The first ever such hands-on initiative moved by EDB was facilitated by Netherlands’ CBI (Centre for the Promotion of Imports from developing countries)-an agency of the Ministry of Foreign Affairs of the Netherlands. Joost vander Kooij and Onno Roukens, the two CBI professional consultants who specially arrived from the Netherlands to train the companies in the session helped the more than 25 Lankan participants of the session on a one-to-one basis. Among the ICT giants taking part were John Keells Computer Services, hSenid Business Solutions, 99X Technologies, Cyber Concepts, SewEasy, E-Nowave, InfoMate, Calcey Technologies, Pyxle, Allion Technologies, Dinota Information Technologies, Sanje, i-Context Content Convergence, Four Corners, Akio Information Technologies, Data Management Systems, Lanka Communication Services, E Marketing Eye, and Perfect Business Solution Services.

“We earned $ 719 Mn from this sector in 2013. The government is highly focused on ICT sector as a forex earner and driver of exports” said Chairman Egodage and added: “Even Mahinda Chinthana stresses the importance of ICT for our way forward in exports, specially as we work towards $ 20 Bn exports goal by 2020. We cannot ignore ICT if we are to achieve any progress. Communication as well as ICT/BPO sectors are cross cutting and are always evolving. In Sri Lanka, we have all plus points to develop ICT sector –most importantly, brilliant brains and pools of knowledge. Today’s initiative by EDB involving no less than international support is part of our strategy to maintain software sector in par with international standards.”

According EDB, Sri Lanka recorded $ 719 Mn of communication and computer exports in 2013 -a growth of 6.8% over its 2012 exports of same. The share of Communication and Computer exports was 6.4% of 2013’s total exports which stood at $ 11.1 Bn.

“CBI is currently working in 20 emerging markets helping them in many areas-including IT outsourcing and market intelligence” said CBI’s Onno Roukens, and added: “Some non-IT sectors helped by CBI are agro sector such as cut flowers and foliage to natural ingredients for pharmaceuticals, consumer products such as apparel, domestic furniture and household utensils, industrial products such as automotive parts, electronic components and medical devices. IT support is part of our services such as IT outsourcing, BPO and tourism.”

“Instead of providing financial support to other countries, CBI provides training instead” said CBI facilitator Joost vander Kooij, and added: “We have understood that Sri Lanka software professionals to be well skilled in what they do. Our training and info on the dynamics of global marketplace will help them considerably.”

Export earnings increase in April,rupee stable

Daily News - 23/06/2014

Sri Lanka’s external sector strengthened further in April 2014, with continued foreign currency inflows in the form of earnings from exports, tourism, workers’ remittances, as well as inflows to the financial account, the Central Bank said on Friday.

The trade deficit continued to narrow during the first four months of 2014 as a result of healthy growth in exports. The contraction of the trade deficit and higher inflows to services and income accounts contributed to reducing the current account deficit. These developments, together with inflows to the financial account have resulted in a higher surplus in the BOP by end April 2014, compared to the corresponding period of 2013,the Bank said.

On a year-on-year basis, earnings from exports in April 2014 increased by 9.4 per cent to US dollars 762 million, while expenditure on imports declined by 5.3 per cent to US dollars 1,444 million. Accordingly, the trade deficit contracted by 17.7 per cent to US dollars 682 million. The cumulative trade deficit for the first four months of 2014 contracted by 12.1 per cent, as the growth in export earnings of 16.9 per cent outpaced the 2.6 per cent increase in import expenditure. The growth in earnings from exports was led by improved performance in industrial exports which grew by 8 per cent, year-on-year, in April 2014 to US dollars 559 million. Industrial exports led by the earnings from export of textiles and garments, increased by 22.5 per cent, contributing 94 per cent to the total increase in exports. Industrial exports accounted for more than 73 per cent of total exports.

During the month, earnings from export of garments to the EU and to the USA increased by 22.3 per cent and 21.2 per cent, respectively, while a notable increase of 50.5 per cent was observed in export of garments to non-traditional markets such as China,

Hong Kong, Japan and Russia reflecting further diversification of export markets.

Earnings from the export of machinery and mechanical appliances and leather products also contributed to the growth in exports of industrial products. Exports of machinery and mechanical appliances, comprising of electrical and electronic equipment such as transformers, static converters, accumulators and home appliances, increased by 20.7 per cent while exports of leather products increased by 86.6 per cent owing to a more than two fold increase in footwear exports. On the other hand, the export of petroleum products, gems, diamonds and jewellery, transport equipment declined in April 2014. Healthy performance in tea and coconut product exports mainly contributed to the growth in agricultural exports by 13.7 per cent to US dollars 200 million.

Export earnings from tea increased by 9.8 per cent to US dollars 117 million as a result of the increase in both the price and volume of tea exported. The average export price of tea increased by 2.8 per cent, to US dollars 5.01 per kg in April 2014 from US dollars 4.87 per kg in April 2013, while export volumes increased by 6.8 per cent, year-on-year.

Three-day ‘Israel-Sri Lanka Business Forum’ on 25 June

Daily Finance Times - 23/06/2014

The Sri Lanka Embassy in Israel in collaboration with the Export Development Board in Sri Lanka, Ministry of External Affairs in Sri Lanka, LR Group in Israel and the Israel-Asia Chamber of Commerce in Israel, has organised a ‘Business Forum’ for the Sri Lankan and Israeli business communities from 25 to 27 June, in order to strengthen bilateral, commercial, trade, cultural and other relations between the two friendly nations.

Main topics to be dealt with will include tourism, technology, water, energy, medical, apparel, employment, agriculture, green house cultivation, diary, fish, flora and fauna, diamonds, gems, jewellery, rubber, hospital, pharmaceuticals, highways, construction and any other topics by the prospective delegates based on their requirements.

The program for the day one will commence with the inauguration at Sharon Hotel, Hertziliya and sponsored by LR Group. Topics covered will be ‘Sri Lanka-Israel relations and way forward’ by Deputy Minister of External Affairs and Chief Guest Neomal Perera; ‘Economy in the New World Order’ by Deputy Governor of the Central Bank Dr. Nandalal Weerasinghe, and ‘Sri Lanka as One of the Best World Destinations for Investment’ by Board of Investment Chairman Dr. Lakshman Jayaweera.

The program for day two organised by the Israel-Asia Chamber of Commerce, Israel will comprise the introductory note and greetings by Sri Lankan Ambassador in Israel Sarath Wijesinghe;
opening note and welcome address by Israel-Asia Chamber of Commerce President Ran Cohen, ‘Sri Lanka-Israel relations and way forward’ by Deputy Minister Perera and ‘Economy in the New World Order’ by Dr. Weerasinghe.

The event will also include networking and business meetings with Israeli companies and entrepreneurs. Organisers have also arranged afternoon site visits to Holon Institute of technology (HIT) and Israeli Diamond Centre (IDC), Ramat Gan as well as visits to historical, religious and technical places sponsored by LR Group.

There will be over 40 participants from various disciplines and sectors from Sri Lanka and they will interact with their Israeli counterparts at both events and at the hotel (one-to-one and collectively). Arrangements are also being made for a major trade mission to Sri Lanka from Israel in September. Ambassador Wijesinghe said the forum is a continuation of the initiatives taken by the Embassy of Sri Lanka during the historical visit by President Mahinda Rajapaksa to the State of Israel and meetings with the high-end business community, trade mission to Sri Lanka organised by the Embassy of Sri Lanka in Israel with the Israel Sri Lanka Chamber of Commerce in the State of Israel, trade mission to CHOGM led by the Sri Lanka Ambassador in Israel with the active involvement of EDB, the Ministry of Trade and Commerce in Sri Lanka and continuous interactions of the Israel-Sri Lanka business communities with public and private sector participation in both Sri Lanka and Israel.

Trade between Sri Lanka and Israel stood at $ 172 million in 2013, of which 72% is accounted by diamonds. Sri Lankan companies participating are Airwing Tours Ltd., Araliya Group of Companies, C.R. Exports Ltd., Dareen Holidays Ltd., E-W Information Systems Ltd., Horizon College of Business and Technology Ltd., Jay Health Foods Ltd., Jay Sea Foods Processing Ltd., Jetwing Travels Ltd., Justin Morgan Recruitment Migration Centre, Lanka Sathosa Ltd., Leader Travels & Tours Ltd., Ministry of Cooperatives and Internal Trade, Ministry of Higher Education, OLS Foods Ltd., Paranthan Chemical Company Ltd., Shiran Garments Ltd., SPJ Holdings Ltd., Sri Lanka Bureau of Foreign Employment, Sri Lanka Institute of Information Technology, The Finance Company Plc.,  Union Chemicals Lanka Plc, and Western Agri Business Ltd.

Sri Lanka's Fish Export up by 20% in 2014 1Q

news.lk - 19/06/2014

Fish and fishery product sector plays an important role in Sri Lanka’s Social and economic life.  The Sector contributes about 2.7% to country’s GDP.  End of the civil unrest detained three decades in the country, fisheries sector has a significant scope to increase the level of contribution through exploiting high seas for tuna fishing & value addition.

Sri Lanka’s main fishery export products include tuna, fresh chilled and frozen form, shrimps & prawns, crabs and lobsters.  Other than the above shark fins, fish maws, beche-de-mer, cuttle fish & squid, sprats are also exports mostly to the Asian markets.  United Kingdom is the main market for Sri Lankan tuna followed by France, Italy, Netherlands, Germany etc.

During the last four years Sri Lanka has been gradually increasing its share in the international market.  Accordingly  fish exports during the first quarter of 2014 has shown an increase of 20% thereby  earning foreign exchange of Dollars 95.68 or Rs 12,384 Million (Billions 12.384).

During the first quarter of the year 2010, the income of fish export had been Rs. 5,710 million and in the year 2011, it has got increased to Rs.6,850 million. Similarly, in the first quarter of 2012, the income from fish export had been Rs.9,009 Million and during the first quarter of 2013, it had increased up to Rs.10,187 Million.

Similarly, during the last three years, the annual fish export had got increased systematically. That is during the year 2011, the income derived from fish export had been Rs.21,876 Million. In the year 2012 this amount had got increased up to Rs.26,363 million and during the year 2013, it had got increased to Rs. 31,792 Million.

The Minister of Fisheries and Aquatic Resources Development, Dr.Rajitha Senaratne has taken further steps to improve this position and it is expected to earn Rs. 40,000 Million by end of year 2015. By improving this position further, by year 2016, it is planned to earn Rs.50,000 Million which will get recorded in history, as the highest income, ever recorded.

Similarly the daily fish consumption per head had been increased from 30 grams up to 41.5 grams. We have a target of increasing this by the end of 2014 up to 50 grams and by the end of 201, up to 60 grams. By winning this target, ourselves and our country would be able to eradicate malnutrition completely, said Minister Senarathna. On the above basis we have played our role on behalf of President Mahinda Rajapaksa by earning a large amount of foreign exchange, added the Minister.

SL apparel industry in a global context and future fortunes

Daily Mirror - 17/06/2014
By Dr. Arosha Fernando

The Sri Lankan apparel trade today is well renowned around the world to be the most cutting-edge and innovative when it comes to apparel manufacturing.

With a very long history of manufacturing in the island and throughout the challenges which this industry has faced to this day, the garment manufacturing  stands much stronger than it has been ever before where the exports from this industry within a year increased by 11 percent (which was the biggest increase annually in 2013 compared with initial years) and by end November 2013 the exports earnings from this industry in Sri Lanka stood at US $2.876 billion, which is a substantial amount of foreign exchange bought into the country by a single industry.

Comparatively compared with our competing countries in this trade which are China, India, Bangladesh and upcoming countries such as Vietnam, Cambodia our apparel industry is quite small. However due to the fact with the change of times and economies as China is now considered as a much developed  country compared to 20 years back, China now has a feel to move into more high-end industries such as IT, pharmaceuticals, auto industry, science etc.

Accordingly the costs of production through the times now have increased dramatically and for China right now and for the future moving into more high-end industries would be much more beneficial for them to sustain their fast growing GDP and the remaining apparel manufactures due to the better economic position where the Chinese population have better disposable income and with a high population (bigger internal market) have focused to cater to their own home market rather than exports. India follows the same suite as China.

Sri Lanka has always held the belt for upholding commitments, quality and needle work of products, compliant and state of the art manufacturing practices, with professional and skilled work force and finally now a safe and stable environment for any global retailer to have a strong footing to set up offices and work closely with the apparel manufactures to export the best quality on a ethical and compliant platform which Sri Lanka apparel trade has held continuously by giving the global retailers the brand protection which now is the key in this business for them.


Changing fortunes of competitors
Although the costs would be lower in the short term, in the long term our competitors such as Bangladesh which has proven to be expensive due to under performances and quality issues and with under compliances and unethical terms of trade the brands have been much tarnished for working in Bangladesh due to heavy media follow up after the recent mentioned fires which killed hundreds of workers, hence now for global customers to protect their branding and business in the long run are seeing as a key safe heaven to set up strong commitments with manufactures as from the inception to the boom of the apparel industry.

Bangladesh can be considered as Sri Lanka’s main competitor in apparel and as the only source of foreign exchange for Bangladesh with vast amounts of labor, low cost, vertical supply chains and plus GSP has been a very challenging fore for the Sri Lankan apparel industry. Bangladesh has much benefit and initially by global apparel chains saw Bangladesh as a gold mine to boost better profitability by taking advantage of their low production costs.

However due to current serious and critical issues in Bangladesh such as recent fires in factories which killed hundreds of workers, commitments towards performance, quality, compliance and the general break down of basic apparel practices towards the work force, and due to this lot of the main global retailers are now shying away from Bangladesh and moving towards Sri Lanka.


Sri Lanka better positioned
Our apparel industry is strongly committed to ethical manufacture and sustainable development assuring the industry’s commitment to ethical working conditions, free of child labour, free of forced labour, free of discrimination and free of sweatshop practices. Further, our apparel industry’s efforts to provide employment and harness the rural talents of the country by setting up factories across Sri Lanka under the Rural Empowerment Concept has made a significant impact to our economy which has been recognized and acknowledged by the global apparel chains.

Thus China, India coming out of garment exports and Vietnam, Cambodia being quite new into the trade and Bangladesh apparel trade facing critical issues and concerns, the key country now to meet their requirements on the platforms which they require is Sri Lanka. Accordingly now Sri Lanka is in an ideal position to aggressively take advantage of this fact that now as good capacity becomes increasingly short and with the amount of global apparel business, global customers will be compelled to pay premium prices for Sri Lankan apparel capacities.

By this change in the apparel environment, Sri Lanka apparel industry can do further to give more employment and higher foreign exchange to the country and sealing a place on the apparel map for the years to come.


Noteworthy local contributions
Another significant contribution made by leading apparel export companies such as Tristar Apparel Group by setting up factories for rehabilitated ex-terrorist after the 30 decade conflict in Sri Lanka where the conflict claimed thousands of innocent lives and bought unimaginable suffering to the lives of innocent Sri Lankan’s who were living in the Northern part of the country.

It was a very much natural feeling for Tri Star Apparel Group who have been in the business for over 30 decades and where the company initiated ‘The Town to Village’ concept and to support the government’s commitment by setting up such investments in the war torn area of Thambalagamuwa in Trincomalee district and to give employment to over 700 people from that area where their lives and their families had been effected from the conflict.
Today the unit has a well known reputation for exporting 100  new born wear to the UK market exclusive manufacture for selected UK retailers. This is a great achievement by the work force and commitment and support given by the government to be a leading export unit within such a short period of time and to create employment for hundreds of innocent people in that affected area and in turn those supporting hundreds of families.

Conclusion
In conclusion, the business community of Sri Lanka should focus more and work towards expanding the apparel industry to a different height in light of the current developments in the global context along with our existing position in the global map by taking the advantage to become the number 1 foreign revenue generator to Sri Lanka by overtaking of foreign employment sector which stands first at the moment.

(Dr. Arosha Fernando has a distinctive professional background covering 20 years in management. Currently Dr. Arosha is the Chairman of Verazo Apparel Exports Pvt Ltd.  Dr. Arosha is a renowned scholar, holding five University Degrees from Australia’s 2 leading Universities. He holds a Doctorate in Business Administration (DBA) from the Australian Graduate School of Entrepreneurship (AGSE) at Swinburne University, Melbourne, Australia and a Bachelor of Business (B.Bus.) Degree, double major in Marketing and Human Resource Management from the Faculty of Business at the same University)

Sri Lankas' Participation at SIAL - 2014

Sri  Lanka  Export  Development  Board  in  collaboration  with  the  Consulate  General  Office  in Toronto, Canada organized the Sri Lanka’s participation at SIAL Canada 2014. . Five Sri Lankan food &  Beverages exporting companies participated in the programme.

• Ceylon Biscuits Ltd.
• Consolidated   Business   Systems (Pvt.) Ltd. 
• HJS Condiments Ltd. 
• Wichy  Plantation  Company  (Pvt) Ltd  
• Tea Talk (Pvt) Ltd.
• Food & Nature (Pvt.) Ltd. (observer) 

The total value of the confirmed orders exceeded 400,000 US Dollars as at  31st  May 2014.

Canada, Morocco, USA, New Zealand, Algeria confirmed their orders on following products,

• Biscuits
• Virgin Oil
• Fruit Juice
• Coconut Milk
• Virgin Coconut Oil
• Tea
• Cinnamon and Other Spices

List of countries having orders under Negotiation

• Guyana
• USA
• Canada
• Morocco
• Germany
• Mexico
• China

Basilur Tea Canada, allied to its Sri Lankan firm Basilur Tea, has clinched the top award in SIAL Canada 2014.  Basilur's  herbal  tea  product  "Fruit  Infusions"  received  the  highest  award  called 2014  Top  -10  Product  Award  at  SIAL  Canada.  This  is  considered  by  many  food  industry specialists as a Very rare achievement since Basilur has reached the TOP 10 twice within last three years. 

Basilur Tea is one of the many products that we promote in Canada and it is one of our flagship products and ranked among many of our success stories in Canada.  

Rishad leading strong biz delegation to Kunming kick-off

Asian Tribune - 07/06/2014

Rishad Bathiudeen, Minister of Industry and Commerce of Sri Lanka addresses the seventh China - South Asia Business Forum (CSABF) held at the Convention Centre of Kunming City in Yunnan Province, China, in 2012 June.

As bilateral trade with China crossed $ 3 Bn, one of the biggest ever trade and business delegations from Sri Lanka is flying to grace the 22nd Kunming international Fair in China which kicks off tomorrow June 06.

“Sri Lanka has been taking part in this event when it was held for the first time in Beijing in 2007. With one of the biggest EDB supported delegations, we are hopeful of good results this year as well” said an upbeat Rishad Bathiudeen (Minister of Industry and Commerce) on the eve of 04 June.

Minister Bathiudeen was speaking to his top officials prior to his departure on the eve 04 June to take part in the second China–South Asia Expo and 22nd Kunming Fair held in Kunming, China. In this tour, the EDB functioning under Minister Bathiudeen is facilitating no less than 118 Lankan business reps –one of the biggest B2B delegations to Kunming from Sri Lanka-who are joining Minister Bathiudeen and his team of five other officials.

The Kunming Fair has become one of the four top annual events (such as the Canton Fair) in China’s trade calendar. Due to its high prominence in the trillion dollar GDP nation, the Kunming Fair has become the second biggest annual fair in the South West China region. Sri Lanka has consistently been one of the strongest South Asian participants at this expo.

The 118 companies and businesses facilitated by EDB represent such diverse product and service sectors as tea, gem and jewelry, arts, crafts and handicrafts, coconut fiber, ayurvedic and herbal products, and even gem cutting and polishing. Sources from Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL) said that 22 business reps from the Chamber representing such firms as Asian Promoters, Rainbow Travels and Tours, Christ Gems and Jewellers, Senira Lanka, are headed to Kunming at the second China–South Asia Expo and 22nd Kunming Fair which will commence tomorrow 06 June and will end on 10 June. The fair is jointly hosted by China’s Ministry of Commerce, the Governments of Yunnan, Sichuan, Chongqing, Guizhou, Guangxi and Tibet, and Chengdu Municipal (People’s) Government.

The total trade turnover between China and South Asia rose to $ 92 Bn in 2012. According to the Department of Commerce, China’s trade with Sri Lanka stood at US $ 3,084.22 Mn ($ 3 Bn) in 2013.

International Education Fair 2014 Malé A Promotion of Sri Lankan Education in Maldives

Sunday Times - 07/06/2014

“International Education Fair 2014”; an annual education promotion programme will be held on 13th& 14th June at the Art Gallery - Malé. This s being organized for the fourth consecutive time and this time it is being organized as a national event by the Sri Lanka Export Development Board (EDB) in collaboration with the Sri Lanka High Commission in Maldives and Millennium Concepts –Maldives. AOD – The International Design Campus – Sri Lanka joins hands with them as the Gold Sponsor.
This promotional programme mainly includes the “Study in Sri Lanka” concept and these two day exhibition will be followed by few Networking meetings with the Ministry of Education Malé.


The Maldivian Government encourages deserving Maldivian students to pursue higher studies overseas by granting education funding. There is also a constant growing demand among the youth to study overseas. There were 1,000 Scholarships which have been announced by the President in March 2014.   Promoting study opportunities, raising awareness of the company profile or generating sales leads can be achieved by participating in this event.

Millennium Concepts managed by Mr. Suresh Kumar Thirugnanasampanthar, an MBA graduate from United Kingdom is a young, potent and dynamic growing company,Singapore based education consulting firm having their liaison offices in Male, Colombo and East Africa. They have been working with leading Universities in Singapore, Malaysia, UK, Australia, Sri Lanka and New Zealand during the past 7 years since our incorporation in 2006. Millennium Concepts initiated this Education Fair Malé and successfully conducted 3 major exhibitions since 2012. The 4th Exhibition which is to be held on 13th& 14th June has been endeavored by the EDB as a national event.


More than 20 educational institutes based in Sri Lanka, and other institutes from Maldives, Singapore, UK and Australia will be participating in this programme to offer educational services to Maldivian students.  


The Millennium Concept and EDB work closely with the Ministry of Education, High Schools and teachers/referral network to reach out to the potential students in Male and Addu which is the second promising city in the south.  The event will be hosted at National Art Gallery Hall located in the heart of Male that is a marvel icon.  The event opening will be inaugurated by the Minister of Education  Malé and many other VIP’s which would get pre and post event publicity at media such as Haveeru, VTV & MNBC.  

EDB PAVILION AT FACETS SRI LANKA 2014

edirectory.lk 

An ideal opportunity for SMEs
The Sri Lanka Export Development Board (EDB) will be organizing a special pavilion at FACETS SRI LANKA – International Gem & Jewellery Show 2014 to be held at the Sirimavo Bandaranaike Memorial Exhibition Center from 04th to 07th September 2014.

Objective
The objective of organizing this special pavilion is to give an opportunity for the SME Gem & Jewellery manufacturers to showcase their products and make use of the event as a platform for them to enter into the international market.

For whom
Small & Medium scale exporters / potential exporters manufacturing gold, silver and fashion jewellery.

Selection & Assistance
The EDB intends selecting 15-20 Small & Medium scale exporters / potential exporters manufacturing gold, silver and fashion jewellery to participate at the above show. The participants will be selected by an interview panel appointed by EDB.

Selected SMEs will be provided with space and display facilities by the EDB

Commitment by the participants
Selected SMEs will have to meet the full cost of production of sample jewellery collection under the guidance of the EDB.

Application procedure
Applications should be made on the prescribed form available at the Industrial Products Division of Sri Lanka Export Development Board, 6th Floor or the Provincial office of the EDB. The applications could also be downloaded from the EDB website www.srilankabusiness.com.

Duly completed application forms should be sent under registered post to reach the Director, Industrial Products, Sri Lanka Export Development Board, NDB/EDB Tower, No: 42, Navam Mawatha, Colombo 2, on or before 9th June 2014.
For further details please contact Mr. Harsha Pathberiya, Deputy Director Tel: 011-3135741 or 011-2300705 – 11 Ext. 354. Fax 011-2303025, Email: hdp [at] edb [dot] tradenetsl [dot] lk.

Rise in coconut product exports

Daily News - 03/06/2014

Sri Lanka’s coconut related exports increased by 86 percent during the first quarter of this year compared to 2011, Coconut Development and Janatha Estate Development Ministry sources said yesterday.

The Coconut Development and Janatha Estate Development Ministry was established in 2011 as a new Cabinet ministry. According to ministry statistics, during the first quarter of this year, Sri Lanka earned over Rs. 5,090 million from coconut related products, an 88 percent increase from the same period in 2011.

In the first quarter of 2011 it was Rs. 2,115 million. It increased annually and the total coconut related products export revenue in 2013 stood at Rs. 44,952 million. Sri Lanka exports 35 coconut related products to 135 countries.

The revenue from desiccated coconut exports increased by 306 percent, coconut cream and coconut milk exports increased by 220

percent and 100 percent in January this year compared to January last year, the statistics stated.

Meanwhile, ministry sources said king coconut exports also increased dramatically this year.

However, according to the sources, coconut based substrates were exported in the form of grow bags, coir pith bales, coir bulk forms, coir pots, husk chips and coir peat for which a great demand exists in the international market.

Substrates are exported as inputs in cultivation activities which are in demand in Canada, America, Eastern and Western Europe, Japan, Korea, New Zealand, Australia, South Africa, Russia and West Asia.

Pakistan likely to expand FTA trade with Sri Lanka

Daily News - 02/06/2014

Pakistan, Sri Lanka’s second largest trade partner in the region, has indicated interest in expanding its free trade agreement (FTA) trade with the island, creating growth in bilateral trade, which already exceeds the US $ 460 million mark, according to Sri Lanka’s trade ministry.

In a statement the ministry said that Pakistan’s High Commissioner Qasim Qureshi had indicated that his country looks forward to expand FTA trade by reducing sensitive items, thereby creating more opportunities for Lankan exporters.

The High Commissioner also stated that the composition of Pakistani working group for this year’s Ministerial level Joint Economic Commission (JEC) session had been finalised and the teams will span across four sectors namely, automotive, investment, customs cooperation and trade.

Meanwhile, Sri Lanka’s trade minister Rishad Bathiudeen pointed out that a range of new Lankan products have penetrated into the Pakistan market after the implementation of the PSFTA. Among them are fresh pineapple, MDF boards, sports goods, tamarind, edible oil, porcelain tableware and kitchenware, ceramic tiles, furniture, electrical switches and sockets and herbal cosmetic products.

Pakistan’s first-ever international FTA partner was Sri Lanka when the Pakistan Sri Lanka Free Trade Agreement (PSFTA) came into force in June 2005. According to Sri Lanka’s Department of Commerce, the value of total trade between the two countries has increased by 330 percent during the last decade from US $ 107.1 million in 2003 to US $ 462.1 million in 2013.

Exports to Pakistan increased by 8 percent in 2013 as against US $ 351 million in 2012. Sri Lanka’s main exports to Pakistan include natural rubber, copra, tea, coconut, spices and betel leaves while main imports are cement, cotton, wheat, cane/ beet sugar, medicaments and iron and steel.

Lanka rides $60Bn global FOSS wave to help exporters, aiming cost advantage

Asian Tribune - 31/05/2014

Sujatha Weerakoone (DG-EDB) addresses the “Free and Open Source Software (FOSS) solutions for Lankan Exporters” session held on 29 May in Colombo as Dr A Ruwan Weerasinghe (Senior Lecturer-University of Colombo School of Computing-seated second from right) and Dr Yousuf Maraikkar (ED-EDB, seated far right) look on.

Sri Lanka has a favourable ‘per container cost to export’ rate of only $ 595. After reporting $1.07 Bn record exports in March, the country is now mulling a new high tech initiative to help exporters to lower this rate for added competitive advantage-while eager Lankan exporters are already testing to avail themselves to a portion of $60Bn global savings from Free and Open Source Software (FOSS).

“We want our exporters to be competitive and will go to great lengths to help them in it. We decided that it is time that our exporters adopt FOSS solutions to enhance their competitive advantage” said Sujatha Weerakoone (Director General-EDB) on 29 May in Colombo.

Director General Weerakoone was addressing the Lankan exporters at the “Free and Open Source Software (FOSS) solutions for Lankan Exporters” session held on 29 May in Colombo at EDB Auditorium.

The session was moderated by an eminent ICT industry expert panel consisting of Dr A Ruwan Weerasinghe (Senior Lecturer-University of Colombo School of Computing), Neschae Fernando (VP Strategy & Technology of Zone24x7, USA), Samisa Abeysinghe (VP, Developer Evangelism of WSO2), Suchetha Wijenayake (IT Consultant, Open Source Advocate-fossure.com) and Sampath Wickremesinghe (Technical Project Manager-Zone24x7). 52 reps from 39 Lankan firms in IT and non-IT sectors–including Shaw Wallace Ceylon Limited (Renuka Group), Sri Lanka Telecom, Akbar Brothers (Pvt) Ltd, Data Management Systems (Pvt) Ltd, LOLC Technologies, Open Arc Systems Pvt Ltd, SAITM Campus, McCallum Cargo (Pvt) Ltd, and Nordtex Pvt ltd-were taking part in the 29 May session.

Open software, also called as open source SW, was born as a substitute for expensive proprietary branded software but has grown today to become a free-of-license-cost and direct solution for many industrial and commercial applications. Latest international estimates showed that the 2013 global open source market totalling $ 8 Bn.

Among the big US firms recently taking (‘migrating’) to open source solutions are General Electric, Sears Holding Corp, Chevron Corp and MasterCard. According to the World Bank, Sri Lanka has a favourable ‘per container cost to export’ rate of only $ 595, same as Thailand, Morocco and only $5 more than Hong Kong. Tajikistan has the highest rate $ 8650. Sri Lanka has recorded $ 1.07 Bn exports for this march, YoY rise of 28.6%.

“We want our exporters to be competitive and we will go to great lengths to help them in it. We decided that it is time that our exporters adopt Free and Open Source Software (FOSS) solutions to enhance their competitive advantage specially in cost” said Director General Weerakoone, and added: “Today’s session is the kick-off. Popular proprietary and branded software are prohibitive when it comes to cost but open source solutions are of zero licencing or purchasing costs-they are free. Despite being free, they are as reliable as any paid software. Therefore we want our exporters to see about the specific solutions readily available for them. EDB is also mulling office automation support and enhanced market support for Lankan exporters in future.”

Dr A Ruwan Weerasinghe (Senior Lecturer-University of Colombo School of Computing), addressing the event said: “It is a myth that open source cannot be used at corporate levels or big companies. In fact, RedHat Linux’ SugarCRM open source software is already used by big corporations. Also another myth is that Open Source is not reliable-which is wrong. In fact, 60% of internet websites are placed on web servers running the open source server software called Apache. Yet another myth is that FOSS is hostile to intellectual property-in fact, the truth is FOSS too demands IP protection and Open Source Institute actively pursues them. If no open source license for the software given, then you are not using open source at all though it could be freeware. Open source software always shows the code to the user and makes it available for the user to modify as they wish.” ‘Join $60Bn global savings by use of FOSS’- Neschae Fernando (VP Strategy & Technology of Zone24x7, USA), addressing the exporters said that annual global costs savings from FOSS is $ 60 Bn. “Sweden saved $ 1 Bn and Denmark saved $ 500 Mn last year by using FOSS. The city of Largo, Florida reports a savings of $1 million per year –that is 40% of their annual budget!”

The Lankan exporter community’s interest was apparent immediately. As soon as the 29 May presentations were over, keen reps from exporter community began to shoot many queries, some of which were very technical and FOSS software based, clearly indicating that Sri Lankan exporters have already begun using FOSS solutions.