Top corporates in Lanka’s first industrial energy push

Daily FT - 29/09/2014

• 11 top Lankan manufacturers in pilot project
•  ‘Round one a success, mulling second!’: Rishad
• ‘Slowly getting-off from oil powered energy’: CEB’s Prof. Perera

Several top Lankan manufacturing firms have been enlisted in the first ever industrial energy initiative as announced on 25 September. As a result of the success, a second manufacturing energy initiative is now being mulled. And, Ceylon Electricity Board is slowly ‘getting off’ from expensive oil powered generation!

Minister of Industry and Commerce of Sri Lanka Rishad Bathiudeen (third from left) inaugurates 12th POWER Sri Lanka 2014 International Expo at Sri Lanka Exhibition and Conventions Centre, Colombo joined by (from left): CEMS Sri Lanka CEO Sarwar, Central Engineering Consultancy Bureau Chairman Nihal Rupasinghe, CEMS Global Asia Pacific Group CEO S.S. Sarwar, EDB Chairman & CEO Bandula Egodage and Ceylon Electricity Board Vice Chairman Professor Kapila Perera on 25 September

 “As our industries were affected during last year’s power price hikes, to support them my ministry has launched Sri Lanka’s first ever Industrial Estate Energy Efficiency Program recently. The selected manufacturers will reduce their annual energy usage by as much as 20% by the end of this year,” said a satisfied Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on 25 September in Colombo.
Minister Bathiudeen was addressing the inauguration event of ‘12th POWER Sri Lanka 2014 International Expo’ event held at Sri Lanka Exhibition and Conventions Centre, Colombo on 25 September. An important event in Sri Lanka’s Power & Energy sector, this series of exhibitions has also been annually organised in Bangladesh and Indonesia. According to the organiser CEMS Global, it acts as a singular B2B platform bringing all power and energy industry stakeholders together, as well as a networking event. 12 Indian, Chinese firms and more than 15 Sri Lankan firms showcased their products in Colombo. The exhibition successfully concluded on 27 September.

Minister of Industry and Commerce of Sri Lanka Rishad Bathiudeen (right) tours 12th POWER Sri Lanka 2014 International Expo at Sri Lanka Exhibition and Conventions Centre, Colombo on 25 September joined by Asia Pacific Group of CEMS Global CEO S.S. Sarwar and EDB Chairman & CEO Bandula Egodage (centre)

“This series of exhibitions bring world-class technology to Sri Lanka to upgrade our Power & Energy sector and also plays an important role by assembling all the stakeholders under one roof creating a rare and, one-of-a-kind, networking opportunity in the sector. Increasing use of off-grid power is a great need at this moment, not only to reduce consumption expenditure but even to reduce transmission load,” said Minister Bathiudeen, and added: “I am given to understand that, the concurrent exhibition ‘Renewable Energy Sri Lanka 2014 International Expo’ encourages investment in this sector to generate power from renewable sources. This concurrent exhibition therefore could be useful to understand the importance of, such off-grid efforts too.
“More importantly we believe that significant progress could be made in our, Power & Energy sector through successful, public-private partnerships to accomplish the development vision of HE the President Mahinda Rajapaksa.  Apart from Power Generation I also see a definite need for our entrepreneurs to look into the power transmission sector which is being not looked into very well.
“As our industries were affected during last year’s power price hikes, to support our industries, my ministry at a cost of $ 39,000, has launched the first ever Industrial Estate Energy Efficiency Program recently. Based on applications we selected 15 manufacturers including Brandix, Phoenix, Lankem, GTB Steel MRS India, from our industrial estates, for this improvement program. I am pleased to say that 11 of these companies have been successful in all the criteria, in the program.
“They will reduce their annual energy usage by as much as 20% on average from the end of this year. Due to this success, we are now thinking of doing another round of energy efficiency for our industries. As the minister in charge of industries, on behalf of all our industries, I also wish to thank HE the President Mahinda Rajapaksa, for giving 25% reduction on electricity bills.”
“Slowly we are getting off from the burden of expensive oil powered electricity generation. As for my personal opinion what stands in the way is the tariff, and load curve in the night peak 6:30 p.m. to 9 p.m.,” said Professor Kapila Perera, (Vice chairman-Ceylon Electricity Board) addressing the event, and added: “We have 5.4 million customer-bases, which translates to 96% of households of Sri Lanka. We have bigger plans as for ‘Sri Lanka Unstoppable 2020’. By 2020 we are aiming for 6500 Mw capacity, 22% of which will be from renewable energy.”

Jan-August exports up by 14%’-Rishad

Asian Tribune - 26/09/2014

Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka-second from left) prepares to address the Fifth National Exporters Forum held at EDB on 25 September as Anura Siriwardene (Secretary, Ministry of Industry and Commerce-far left), Bandula Egodage (Chairman & CEO-EDB-third from left), Sujatha Weerakoone (DG-EDB-far right) look on.

Sri Lanka’s January-August exports have surged by a strong 14%, as announced on 25 September. And more than 110 exporters and Chamber reps have thronged the fifth national Exporters’ Forum in Colombo.

“I am pleased to say that according to the latest provisional data by EDB, January to August 2014 exports have increased by a strong 14.03% to $ 7.34 Bn. As committed exporters, it is your valuable efforts that can help us, to move our target, of $ 20 Billion exports, by 2020, under the committed vision, of HE the President Mahinda Rajapaksa” said a satisfied Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on 25 September.

Joint Apparel Association Forum (JAAF) Secretary General Tuli Cooray raises an issue on behalf of apparel exporters at the Fifth National Exporters Forum on 25 September.

Minister Bathiudeen was addressing the fifth national Exporters Forum organised by the EDB on 25 September. More than 120 reps from 50 companies and various Chambers-including Hayleys, Expolanka, Enrich Tea, Earnst & Young, DSI, Netle, Acquamarine, and Printcare as well as such chambers as Ceylon Association of Ships' Agents, Ceylon Chamber of Commerce, National Chamber of Exportes, Planters Association, JAAF-took part in the session. Also taking part were Anura Siriwardene (Secretary, Ministry of industry and Commerce), Bandula Egodage (Chairman-EDB), Sujatha Weerakoone (DG-EDB) and top officials of Ministry of Industry and Commerce.

“As committed exporters, it is your valuable efforts that can help us, to move our target, of $ 20 Billion exports, by 2020, under the committed vision, of HE the President Mahinda Rajapaksa” said Minister Bathuiudeen, and added: ”It is here, that I wish to thank you all sincerely for our positive export growth trend. In that I am pleased to say that according to the latest provisional data by EDB, January to August 2014 exports have increased by 14.03% to $7.34 Bn, in comparison to 2013 January-August exports. I am pleased to say that even monthly exports for August 2014, have increased by 2.4%, to $ 978 Mn, from July 2014’s $955 Mn.”

According to the latest provisional data, this increase is seen across all sectors. January to August increase have been led by agricultural products at $ 1.778 Bn increasing by 3.18%, manufacturing at $1.623 Bn increasing by 2.5%, apparel at $ 3.24 Bn increasing by 0.65%, industrial products at $5.343 Bn increasing by 0.91%, Ceylon tea at 1.07 Bn increasing by 3.09%, coconut exports at $356 Mn increasing by 4.2%, and other export crops at $ 315 Mn, increasing by 4.7%. Due to international rubber price decline, natural rubber exports show a decline.

Almost one fourth of issues listed in 25 Exporters’ Forum agenda were resolved successfully.

“These positive outcomes also are a result of the approach adopted by the EDB under my Ministry. In other words it is a result of all our collective engagement and efforts” Minister Bathiudeen said.

More than 100 reps from various government institutions including the Customs, Treasury, BoI, University of Moratuwa, EDB, Ministries of Industry and Commerce, Agriculture, Industrial Development Board, the Ports Authority, and Exchange Control Department too were present to answer exporter queries.

Sri Lanka showcases SME drive at UN’s Export Forum

Daily FT - 25/09/2014

• EDB takes part in WEDF 2014 in Kigali!
• Our brands competing with global brands: EDB’s Egodage
• WEDF 2014 learns of Lankan SME initiatives

A well-known Sri Lankan tea brand received the keen attention of global export experts at the UN’s latest 2014 World Export Development Forum in Rwanda, while the role of Sri Lanka’s apex export body, the EDB, in enhancing SME exports was also revealed to global experts.
“Several Lankan brands play an important part in Sri Lanka’s exports success. Some Lankan brands have been able to compete against larger brands from multinational companies,” said EDB Chairman and CEO Bandula Egodage, taking part in the World Export Development Forum (WEDF) on 16 September in Kigali, Rwanda.

Egodage was one among over 60 eminent international panellists who were sharing their valuable experience on the complexities of exports and their best practices at WEDF held from 15-17 September in Kigali, Rwanda.
The Kigali WEDF brought together more than 1,200 registered participants from 73 countries from governments, trade support institutions and businesses, to debate and identify solutions that contribute to sustainable economic growth and development. The Kigali WEDF 2014, which packed several networking sessions and company visits, was held on the theme of ‘SMEs: Creating Jobs through Trade.’
WEDF is an initiative of International Trade Centre (ITC), a subsidiary of the World Trade Organization (WTO) and the United Nations Conference on Trade and Development (UNCTAD), providing trade-related specialised technical assistance to exports of various economies, especially transition economies.
Egodage, speaking at the parallel session on ‘Building a Brand: Export Marketing for Developing Countries,’ added: “Lankan brands such as Dilmah have been able to compete against large brands from multinational companies and develop their presence in international markets successfully. SMEs are the backbone of Sri Lankan economy and a main player in the export supply chain. The Sri Lanka Export Development Board has launched many initiatives to strengthen SME exports, under the vision of President Mahinda Rajapaksa, and guided by Rishad Bathiudeen, Cabinet Minister in charge of exports.”
In 2013, 82% of Lankan exporters were from the SME sector. Sri Lanka’s Dilmah brand packs over 60 years of history in Ceylon Tea and the family-held brand reportedly follows the entire ‘nursery to tea cup’ value chain process closely.
Egodage also explained SLEDB’s many initiatives to strengthen Sri Lanka’s SME exports at Kigali WEDF 2014. Among recent such initiatives were the increasing number of Lankan SME pavilions in EDB-facilitated trade fairs (locally and internationally), facilitation of linkages between SMEs and international buyers, enlisting SME biz in advisory committees, and closely working with other Government ministries involved in SMEs (such as the Ministry of Agriculture).
Sectors such as leather, handlooms, packaging, food processing, fruits and vegetable and ornamental fish are some of the well-known SME contributors to Sri Lanka’s exports.

Sri Lankan Agricultural Delegation visit Israel

SLEDB organized  a technical exposure and awareness programme in Israel from 10-15 September 2014, for a group of growers of the Sri Lanka Protected Agriculture Entrepreneurs Association in the Central province, to provide  training & awareness on  intensive cultivation methods of fresh fruits & vegetables , other protected agriculture systems, efficient management of water resources & soil, open field irrigation methods, post harvest handling, export packaging  and  marketing.

The programme was conducted with the assistance of the Honorary Consulate of the Israel, The Sri Lankan Embassy in Israel, MASHAV (Israel's Agency for International Development Cooperation) and CINADCO  (Center for International Agricultural Development Cooperation) which is functioning under the Department of Agriculture & Rural Development in Israel.

This  professional program aimed to share with the participants Israel’s approach and experience concerning the development of its horticultural sector and to create a framework for discussion and exchange of knowledge between the participants, Israeli professionals and farmers. The program also included exposure to milk and honey production, small scale agricultural entrepreneurship, a meeting with Israeli companies at the Israeli Export Institute as well as a glance to Israel's history and culture.

The six-day visit allowed participants to get acquainted with intensive and high tech horticulture production systems, post harvest and marketing management  while understanding the challenges and policies of supporting institutions responsible for  research, extension and plant protection & inspection services.

Ceylon Chamber, EDB to lead business mission to Indonesia in October

Daily FT - 23/09/2014

The Ceylon Chamber of Commerce together with the Export Development Board of Sri Lanka is making arrangements to lead a business delegation to Indonesia, to explore trade, investment and tourism opportunities in that country.

The Joint Business Promotion Mission to Indonesia will take place from 7 to 11 October, which coincides with the Sri Lanka – Indonesia Joint Economic Commission meeting to be held in Jakarta.

The members of the delegation are also expected to attend the Sri Lanka – Indonesia Business Forum to be held on 9 October, which will see a large number of Indonesia businessmen also taking part.
A B2B session has also been organised between the businessmen of both countries, while a visit to the 29th Trade Expo Indonesia 2014 which will take place from 8 to 12 October 2014 is also on the cards for the Lankan delegation.

The exhibition showcases some of the best Indonesian export products from the industrial, mining, agricultural and craft sectors.

Interested Sri Lankan businessmen who want to join the delegation to explore trade, investment and tourism opportunities in Indonesia, can do so by contacting Harshini on 5588859 or via harshinif@chamber.lk.

EDB calls for full Lankan exporter registration

Asian Tribune - 19/09/2014

Sujatha Weerakoone (DG-EDB-far left) addresses the “How to Export Quality Fruit & Vegetable to the EU Region” session held at EDB on 16 September as Ms Champika Hewage (OIC, Plant Quarantine Station, Sea Port, Colombo-second from left, seated), Dr Yousuf Maraikkar (ED-EDB-third from left) and Ruwanthi Ariyaratne (Asst. Director-Department of Commerce) look on.

Sujatha Weerakoone (DG-EDB) addresses "How to Export Quality Fruit and Vegetable to the EU Region" session held at the EDB auditorium recently.

Sri Lanka's apex export entity has issued a clarion call to the country's exporter community to register with it and enlist in its surging database on 16 September. "Some non-registered exporters, unaware of procedures have brought a bad reputation for Sri Lanka. It is time all Lankan exporters register with EDB" voiced a keen Sujatha Weerakoone (DG-EDB) on 16 September in Colombo.

DG Weerakoone was addressing "How to Export Quality Fruit & Vegetable to the EU Region" session held at EDB on 16 September.

Recently, the European Commission Director General of Health and Consumers has informed the national Plant Quarantine Services of Sri Lanka that some consignments of fresh fruits and vegetables (only) exported to EU and Switzerland were contaminated with pests, detecting that of 350 fresh fruits and vegetables (only) consignments that entered EU from 2011 to date, 292 were contaminated with pests.

As per Customs Department data, 3650 exporters of all scales were active in 2013 which included both EDB registered and non-registered exporters. As of 2014 July, 3170 such active Lankan exporters have been reported, both EDB registered and non-registered. Interestingly, EDB statistics indicate that 227,853 companies, individuals, and SMEs have been registered with EDB as exporters since 01 August 1985, getting into active exports at one time or another.

Sri Lanka starts work on global consumer compliance

Asian Tribune - 21/09/2014

From left: Sujatha Weerakoone (DG-EDB), Antony Taubman (Director of the WTO’s Intellectual Property Rights Division), Anura Siriwardene (Secretary, Ministry of Industry and Commerce), Gretchen Stanton (Senior Counsellor, World Trade Organization) and RDS Kumararatne (DG-DoC) at the 18 September WTO session in Colombo.

Sri Lanka has begun compliance work on the global consumer end of its exports basket on 18 September. And no less than two top experts from Geneva’s WTO are in town to facilitate the pioneering effort.

“Today, more countries around the world continue to reduce their border tariffs, either unilaterally or through an increasing number of free trade agreements, called as RTAs-Regional Trade Agreements. Non-tariff barriers such as SPS and TBT measures have begun to create a significant impact on international trade. Unfortunately, most of these measures appear to be highly complex and increasingly challenging” said Anura Siriwardene (Secretary, Ministry of Industry and Commerce) on 18 September in Colombo.

Anura Siriwardene (Secretary, Ministry of Industry and Commerce) addresses the 18 September WTO session in Colombo.

Secretary Siriwardena, on behalf of Rishad Bathiudeen (Minister of Industry and Commerce), was delivering the keynote address at the “National Seminar on WTO Agreement on Sanitary and Phytosanitary (SPS) Measures” held at the auditorium of EDB on 18 September. The first ever session to be held in partnership with WTO in Sri Lanka on SPS measures, the two day intensive program is conducted in Colombo by WTO Geneva’s Institute for Training and Technical Cooperation and organised by the EDB and the Department of Commerce, both under the Ministry of Industry and Commerce. 18 September session also saw more than 75 reps from 16 firms including CIC Agri Produce Export Ltd, Eastern Allied Agency Ltd, Ceylon Agro Industries, Basilur Tea, Akbar Bros, and Adamjee and Lukmanjee Ltd, eagerly taking part. Also at the session were Sujatha Weerakoone (DG-EDB), RDS Kumararatne (DG-DoC), Dr Yousuf Maraikkar (ED-EDB), and members of the Spice Council including Sarada de Silva (Immediate Past Chairman of the Spice Council). Representing Geneva’s WTO were the two experts-Ms Gretchen Stanton (Senior Counsellor, World Trade Organization-formerly with the US Department of Agriculture’s Foreign Agricultural Service) and Antony Taubman (Director of the WTO’s Intellectual Property Rights Division). “SPS measures” pertain to the international export standards to be adhered to by Lankan exporters when exporting food, animal and plant produce.

As for exports, on 17 September, the Central Bank announced that month of July 2014 exports to be at $955Mn, resulting in 2014 January-July total exports at $6.4 Bn.

“The SPS Agreement is one of the key legal instruments of the WTO-led multilateral trading system. It prevents countries from using various food safety and animal & plant health standards as disguised trade restrictive measures. Therefore, this seminar, will, no doubt, be a highly useful exercise, particularly for the private sector businesses, whose merchandise has to satisfy various SPS requirements on both sides of the borders, as well as all the government authorities, which are responsible for Sri Lanka’s own SPS regime. On behalf of every participant, I would, therefore, like to convey my heartfelt gratitude to the WTO for its most valuable cooperation extended in organizing this seminar” said Secretary Siriwardena, and added: “Today, more and more countries around the world continue to reduce their border tariffs, either unilaterally or through an increasing number of free trade agreements, which are broadly known as Regional Trade Agreements or RTAs in short. The extremely slow progress observed within the Doha Round of Negotiations appears to be the main reason for these mushrooming RTAs. According to the WTO itself, the number of notified RTAs had reached as many as 585 by the middle of this year, while 379 of them were in force. Against this backdrop, non-tariff barriers such as SPS and TBT measures have begun to create a significant impact on international trade. Unfortunately, most of these measures appear to be highly complex and increasingly challenging. Some of them have become even very expensive to comply with. As a result, the LDCs and the resource-poor developing countries, which do not have sophisticated SPS infrastructure at their disposal, are placed at a very disadvantaged position in the international market place. As the Secretary, responsible for Sri Lanka’s foreign trade, I am deeply concerned about the numerous difficulties our entrepreneurs, who make a vital contribution in our economy, continue to encounter in different export destinations. As most of you know already, the Government of Sri Lanka under the leadership of HE the President Mahinda Rajapaksa, has set an ambitious target in achieving $ 20 B exports by 2020. Though ambitious, this is not an impossible target, provided we get our act together and the economic conditions around the world remain conducive. My ministry and every institution that falls within its purview look forward to working very closely with our all stakeholders in this achieving this goal by 2020. In this context, we remain strongly committed to our business community, paving the way for them to play their role in the post-conflict development efforts of the island through job creation and export earnings.”

RDS Karunaratne (DG-Department of Commerce) addressing the event, said: “With increasing trade among WTO members, comes growing health concerns about the goods crossing their borders. As a result of use of SPS increasing. At times they serve to protect the importing country and other times, they act as non-tariff barriers. Sri Lanka is facing a number of SPS related tariffs when it comes to exports. For Sri Lanka, which trying to expand exports, this issue is a serious obstacle. At the same time as a net food importer, and as a country with liberal trade regime, Sri Lanka too needs to learn of the SPS measures to protect its own consumers. As a WTO member, Lanka’s policies too need to be adjusted in par with international trade regimes. Therefore this session will contribute towards a better understanding of this important set of standards.”

Footwear Exports Double

The Sunday Leader - 21/09/2014

Sri Lankan manufactured Footwear exports have doubled during the year 2013, compared 2012, a new study conducted by the Ceylon Chamber has revealed.

According to the study titled ‘Footwear Exports and Imports of Sri Lanka – Statistical Analysis’, which covers the periods of 2006 to 2013, Australia and Italy ranks as the main export markets for Sri Lankan footwear.

The analysis also shows that China is the leading exporter of footwear to Sri Lankan market accounting for 41% of the total footwear imports made by the country in 2013. India follows with an 18% share. Sri Lanka has imported footwear for a value of Rs. 3.2 billion during the year 2013, a 30% increase from what was imported in 2012.

‘Footwear Exports and Imports of Sri Lanka – Statistical Analysis’ conducted by the Chamber, includes a comprehensive cover of products under HS code 64 by Footwear category and Country of Origin, Comparison of Footwear Exports, Imports of Sri Lanka during last 8 years, A brief overview of the world footwear market, Global Trends and forecasts of the Footwear industry, Value and Direction of Sri Lanka’s Footwear Exports and Imports, Major Markets for Sri Lankan Footwear and Major Sources of Imports of Footwear into Sri Lanka etc.

Sri Lanka looks to dress more Brazilians

Daily FT - 22/09/2014

First ever top Lankan apparel industry delegation kicks off promotion in giant South American market
By Shabiya Ali Ahlam

Sri Lanka’s apparel sector is looking to dress more Brazilians as the first ever industry delegation kicks off a promotional tour today to tap potential in the giant South American market.

In an effort to expand the buyer base for Lankan apparels, the Export Development Board (EDB) and the Joint Apparel Association Forum (JAAF) together with the Sri Lanka Embassy in Brazil has organised the six day promotional program from 22 to 27 September.

The delegation comprises nine companies – Brandix Lanka Ltd, Hirdramani Group of Companies, E. A. M.  Maliban Textiles Ltd, Timex Garments Ltd, Classic Garment Ltd, Stylish Garments Ltd, Trendy Connections Ltd, Globe Knitting Ltd and Rakshaa Ltd.

They will be showcasing a variety of products ranging from Men’s wear, Women’s wear, Formal wear, Business wear, Sportswear, Denim wear, Casual wear, Active wear, Babies and Children’s wear, Lingerie, Beach wear and Stockings and Hosiery.

The promotional tour includes B2B meetings and a mini exhibition for the first three days followed by visits to corporate offices of apparel buyers.

A key objective of the initiative is to explore market opportunities and establish direct contacts with prospective buyers in Brazil that has an apparel, textile and clothing market estimated at $ 37.2 billion overall and growing at 7 % per annum. Brazil imported $ 6.7 billion worth of textiles and clothing in 2013.

Industry believes Sri Lanka has much to do to be a part of that market as data from EDB indicates that it currently contributes only 0.40% of Brazil’s apparel imports. Currently Brazil’s top sources for apparel imports are China (61.29%), followed by Bangladesh (6.96%) and India (6.11%).

While Brazil is recognised to be of the most promising emerging economies in the world, the EDB and the JAAF noted it as one of the largest upcoming markets in the world fashion industry. In addition to importing fashion clothing, the country also has a well developed fashion industry of its own that comprises of many local brands and designers that are internationally renowned.

Apparel exports in the first seven months of this year have increased by 19% to $ 2.83 billion. In 2013 earnings from apparel rose by 13% YOY, to $ 4.5 billion surpassing the $ 4 billion target set by the apparel industry. Exports to the EU and the US recorded annual growth of 6.8% and 21%.Sri Lanka is working towards achieving an apparel exports target of $ 10 billion dollars by 2016 and it has greater ambitions to occupy a position among the world’s top 10 apparel exporting countries by 2020.

The need for exporters to register with the EDB stressed

Ceylon Today - 17-09-2014

Sri Lanka's apex export entity – EDB, yesterday claimed that some non-registered exporters with no knowledge of procedures have brought a bad reputation for Sri Lanka.

EDB pointed out that, the European Commission Director General of Health and Consumers had recently informed the National Plant Quarantine Services of Sri Lanka that some consignments of fresh fruits and vegetables (only) exported to EU and Switzerland were contaminated with pests, and that of 350 fresh fruits and vegetables (only) consignments that entered the EU from 2011 to date, 292 were contaminated with pests.

EDB Director General, Sujatha Weerakoon, said yesterday that the EDB has issued a clarion call to the country's exporter community to register with it and enlist in its surging database.
She said, of 295 consignments 290 were contaminated. None of the exporters of contaminated consignments were registered with the EDB. These few non-registered exporters, unaware of procedures, have brought a bad reputation for Sri Lanka.
Thus she pointed out that, it is time all Lankan exporters register with EDB.


From 1 August 1985, any and all exporters in Sri Lanka should register with EDB, as per gazetted regulations, in that, anyone exporting any article of commercial value from Sri Lanka on or after 1 August 1985, should register with the EDB. This registration is free of charge and is not a hindrance to the exporter, but rather, brings some benefits to the exporters where it could build a rapport with the topmost export body the EDB. They can enter EDB's database, and from time to time, they could receive relevant export information," she added.


Weerakoon made these remarks addressing a session on 'How to export quality fruit & vegetable to the EU Region,' organized by EDB with the assistance of the National Plant Quarantine Service, Department of Agriculture and the Department of Commerce held at EDB yesterday.


She said during their recent meeting with the Treasury facilitated by EDB, Sri Lanka's committed fruits and vegetable exporters came forward to contribute to make the sector a half-a-billion dollar industry in the future. Also what they were looking forward from the government was mostly policy direction and shaping, rather than funding support for them.
Moreover she said, most fruits and vegetable exporters are SME oriented and down the value chain, there is a significant contribution by them to our employment and farmer society and clusters, having a direct connection to our economy. "Now you can see that despite low export values, how important this sector is."


As per Customs Department data, 3,650 exporters of all scales were active in 2013 which included both EDB registered and non-registered exporters. As of 2014 July, 3,170 such active Lankan exporters have been reported, both EDB registered and non-registered. Interestingly, EDB statistics indicate that 227,853 companies, individuals, and SMEs have been registered with the EDB as exporters since 1 August 1985, getting into active exports at one time or another. Therefore, the overall exporters since 1985 August (both EDB registered and non-registered) could be much higher.


Champika Hewage OIC - Plant Quarantine Station Sea Port, Colombo who made an extensive and in-depth presentation on quarantine procedures adopted in Sri Lanka for fruits and vegetables, pledged to the exporters that when they export these products to markets such as EU, showing exports standards alone may not be enough – sometimes they even need to show that they have followed good agricultural practices. Based on the type of export products, the agency was in a position to help and teach them the necessary steps.


Around 65% of Sri Lanka's fruits and vegetable exports head to the Maldives and the Middle East. In 2013, Sri Lanka exported US$19.69 million of vegetables and US$ 40.82 million of fruits across the world. Fruit exports alone jumped by 118% from 2012 onwards to US$ 19 million. Vegetable exports too increased from US$15.06 million in 2012 to US$ 19.69 in 2013. Despite the low export volumes, both are critical for the Sri Lankan economy due to the social and livelihood importance of them in the SME value chain.


Among the representatives present at yesterday's session were from Aitken Spence Exports, Jagro, Eastern and Allied Agencies, Aloy Expo Ltd., Nidro Supply Ltd., Ceylon Chamber of Commerce, CR Exports, Ellawala Horticulture, Kingsfood, and HNB.
Representatives from Plant Quarantine Station (Sea Port, Colombo), the Department of Commerce also made detailed presentations to the exporters joined by Darshana Perera (Deputy Director – EDB).

EDB starts first ever medical tourism push

Daily News - 15-09-2014

“Professional service exports present a tremendous opportunity and can speed up government’s ‘$20B exports by 2020’ goal. Medical Tourism is one of the most promising sub-sectors in this. We are ready to work with any and all stakeholders to get this off the ground” said Director General, EDB, Sujatha Weerakoone addressing the kick-off session of EDB’s 2015-20 National Masterplan Initiative on Medical Tourism held at EDB last week.

The pioneering session saw top reps from Hemas Hospitals, Asiri Group of Hospitals, Lanka Hospitals, Durdans Hospital, Nawaloka Hospitals PLC, the Health Ministry as well as M.K.S.K Maldeniya (ICT Sector Director-EDB) joining the session. The private sector reps also represent Sri Lanka’s Private

Hospital Association (PHA).

PHA hosts the majority of Sri Lanka’s private hospitals, nursing homes and private healthcare providers as its members. 55% of country’s outpatients and 15% of the country’s in-house patients, are treated by members of PHA -the rest being treated by state sector hospitals & healthcare facilities.

Global Medical Tourism industry annual turnover is not definitive but Patients Beyond Borders, the oft-referenced consumer information source about international medical and health travel estimates that by 2014, the worldwide medical tourism market to be $47B (median value, $55 B at highest), growing 20% annually with 11 Mn cross-border patients worldwide, and $4250 median spending per visit! These visit costs “include all medically-related costs, cross-border and local transport, inpatient stay and accommodations.”

Studies show that around 15% of patients in Sri Lanka are foreign patients, such as from Maldives.”

“Professional service exports present a tremendous opportunity and can speed up government’s $20 B exports by 2020 goal. Medical Tourism is one of the most promising sub-sectors in this. Realising the importance of this, EDB, which strongly believes in Private Public Partnership approach, has decided to make the first ever national initiative to rally the healthcare providers as well as stakeholders and formulate a common voice for 2015-20 National Masterplan Initiative on Medical Tourism.”

The private healthcare reps at the session pledged prompt support, even declaring this to be a ‘much needed initiative’. Dr Lalith Peiris (CEO-Lanka Hospitals), addressing the session said: “We are very happy that the EDB is taking a lead role in this much needed initiative specially at a time when many medical tourism destinations such as Thailand, Singapore, Malaysia etc are competing and out-pricing themselves. This initiative can also help bring high net worth tourists instead of budget tourists and the ‘wellness medical tourism’ is a huge growth area.”

FACETS 24th edition ends on a high note

Daily FT - 13/09/2014

The 24th edition of FACETS Sri Lanka 2014, the international gem and jewellery exhibition organised by the Sri Lanka Gem and Jewellery Association (SLGJA) ended in a high note. The event was very successful with over 150 stall holders including individual exhibitor pavilions from The National Gem and Jewellery Authority (NGJA) and an SME pavilion from the Sri Lanka Export Development Board (EDB).
In addition, over 100 international buyer delegations attended the expo, across China, India, Myanmar, Dubai, Singapore, Thailand, Hong Kong, USA, Russia and Germany. Stall holders from Singapore, Dubai, Myanmar, China and India also participated at the event.

Speaking about the successful 24th edition, FACETS Sri Lanka 2014 Chairman Juzar Adamaly stated, “Having started in 1991 with just 50 booths at the Hilton, to filling up the BMICH Exhibition centre with over 150 booths (and having a waiting list), the international gem and jewellery exhibition has made a long and successful journey. We thank all who made this event a success and we look forward to seeing you at the 25th Silver Jubilee FACETS Sri Lanka celebrations next year. Special note of appreciation to The National Gem and Jewellery Authority and EDB for the continuous support provided to make this event a success.”
More than 10,000 visitors including local and foreign witnessed a grand display of Sri Lankan gem and jewellery quality production. Key highlights included displaying of precious and semiprecious gems as well as an exclusive hall dedicated to jewellery, lapidary and machinery items. Knowledge sharing sessions included a series of seminars conducted by international and local panellists this year and a networking and fellowship session with the international buyer delegation.

EDB in new push for Japanese IT market

Daily FT - 13/09/2014

As Sri Lanka’s IT exports topped $ 719 m, a business journalist from world’s fourth largest selling newspaper was taken by surprise by the country’s inroads into one of the most demanding niche software markets in the world.
“I am really surprised by your ability in our platforms. This is news!” exclaimed Yuichi Kiriyama, business journalist of Japanese language Mainichi Shimbun, the world’s fourth largest selling newspaper.

Yuichi was addressing a special gathering of the software interest group for the Japanese market held on 5 September in Colombo facilitated by the EDB.

Led by EDB ICT Sector Director M.K.S.K. Maldeni, the session was attended by reps from leading industry players such as Seneru Information Technologies Ltd., MaxSolPro Ltd., 99x Technologies, OpenArc System Mgmt Ltd., Orion Development Ltd., hSenid Software and Information and Communication Technology Agency of Sri Lanka (ICTA).

The 5 September session was an outcome of the EDB’s successful May 2014 IT delegation to Tokyo.
To further boost Sri Lankan IT&BPM presence in Japan, last May, EDB’s Assistant Director R. Swarnapali accompanied a team of Sri Lankan IT&BPM firms to world’s second largest trade show on Information Technology (IT) called ‘Japan IT Week’ held at Tokyo Big Site international exhibition centre.

Among the Lankan companies taking part in Tokyo were Tellida Ltd., Sulva Sutra Concepts Ltd., Orion Development Ltd. and Openarc Systems Management Ltd. the Sri Lankan Embassy in Japan had also arranged meetings for the delegation with institutions such as Japan Information Technology Service Industry Association (JISA), Tokyo Chamber of Commerce and Industry (TCCI), Japan Users Association of Information Systems (JUAS), Fujitsu and Cannon IT Solutions Inc and JETRO Japan.

The 5 September session with Japanese media rep was a follow-up of the May ’14 delegation to Japan in which the progress of the visit was reviewed and Sri Lanka’s capacity was introduced to Japanese media.
To compete successfully in the Japanese software market, the software interface needs to be in Japanese, which is demanding since it is spread across no less than three alphabets totalling 8,092 characters.
Yuichi was surprised by the software capabilities showcased by Lankan software maker MaxSolPro Ltd. for Japanese platforms.

MaxSolPro CEO M. Gazzaly said: “We are totally Sri Lankan-owned firm. Japan is a specialised software market and you need high standards. For example, our Golvi Voice Navi, the voice navigator for golf players in thousands of Japanese golf courses, has been received well in Japan. We developed it with Digitalvox. It is a GPS-driven high-tech hand-held gadget that speaks to you and gives you exact directions to the tees, fairways and location of holes, etc., in all top golf courses in Japan. It first identifies the golf course automatically and loads the full profile at start. While playing, the player wearing voice navi does not need to worry about where to turn next! We are also into many other apps in Japanese language, such as the widely used jpTravel app.”

In 2013, Sri Lanka’s IT and Business Process Management (BPM) exports stood at $ 719 m, surging 237% from 2007; 77% of 2013 exports were BPM. Sri Lanka has set a target of $ 5 b IT&BPM exports by 2022, of which it expects 62% to be BPM while also creating 200,000 jobs and 1,000 start-ups by the target year.

To support the growth targets, in its National Budget 2014 the Government proposed a five-year half tax holiday for new partnerships or firms engaging in international services in the field of accountancy, commerce, finance, law, IT, engineering and architecture.

“Sri Lanka’s software industry is not widely known in Japan,” said Yuichi. “But now we are getting to know about it.” He also learnt in-depth about the Sri Lankan IT industry’s progress directly from EDB and industry officials present on the occasion.

Mainichi Shimbun is the world’s fourth largest selling newspaper with a reported readership of 12 million in Japan (within Japan itself, it’s the third largest; topmost is Yomiyuri Shimbun and secondly, Asahi Shimbun).

First ever business delegation from Finland due in December

Daily FT - 10/09/2014

Minister of Industry and Commerce Rishad Bathiudeen and Finland’s Roving Ambassador for Bhutan, Maldives, Pakistan and Sri Lanka Rauli Suikkanen hold discussions in Colombo last week

The first-ever high level trade and business delegation to Sri Lanka from the world’s ICT leader is now mulled for early December.
“I have been able to encourage my Government to renew trade cooperation with Sri Lanka. I have been highly encouraged by the rapid development seen in Sri Lanka. The first-ever Finnish business and investment delegation is now being scheduled for the first week of December 2014,” announced Finland’s Roving Ambassador for Bhutan, Maldives, Pakistan and Sri Lanka Rauli Suikkanen on 4 September in Colombo.

Suikkanen was addressing Minister of Industry and Commerce Rishad Bathiudeen during a courtesy call on Bathiudeen. Also present was EDB Chairman and CEO Bandula Egodage.

“I am very happy two Finnish firms are already successfully operating here in water and power sectors. Finland is world reputed for shipbuilding, telecom such as Nokia which used to be Finnish, ICT and even clean technologies. I see a lot of potential in Sri Lanka and Finnish businesspersons want to come here and find out the latest developments status in Sri Lanka,” Suikkanen said

“I congratulate Sri Lanka on its strong growth. I am very proud to be the Finnish Ambassador to Sri Lanka, especially since we are celebrating 50 years of diplomatic relations this year. We have lots of high tech which could support Sri Lanka’s education development as well. Finland’s IT leadership in the world is well known. We have not finalised the delegation yet but the Finnish Government’s promotion agency FINPRO is organising the business sectors reps to Sri Lanka. Their reps in New Delhi are now working on this. The Finnish development finance firm FinnFund is also involved, and more importantly ‘Finnpartnership,’ whose mission is to increase commercial cooperation and promote business partnerships between companies in Finland and in developing countries, will also be partnering with business feasibility studies and in linking matching firms at both sides. The first-ever Finnish business and investment delegation is now being scheduled for the first week of December 2014.”

The Nordic powerhouse Finland is the lead producer and user of information and communication technology (ICT) in the world and ranks No. 1 in the Legatum Prosperity Index. It is also the birthplace of global brands such as Nokia, and Nokia Siemens Networks, Neste Oil, Finnair, F-Secure (IT sector), and Viking Line (shipping).

Bathiudeen said: “Thanks to the committed leadership of President Mahinda Rajapaksa, we have seen rapid growth and expect GDP growth this year at 7.8%. This is the time to invest in Sri Lanka for keen Finnish investors. We are very pleased to welcome a leading business delegation from Finland and are ready to give our fullest support in this regard. The EDB can facilitate B2B sessions. I also observe that bilateral trade volume was at a low $ 28 m in 2013, which shows both countries are promising virgin markets to each other. Therefore for both countries this is breaking of new ground.”

According to the Department of Commerce, Sri Lanka’s trade with Finland has been fluctuating for the last few years and reported $ 28 m in 2013, with exports comprising $ 16.05 m. Tea is the main item exported to Finland (55% in 2013) followed by apparel.

The leading import from Finland, mobile cellular phones, saw their peak in 2010 and from 2011 was overtaken by marine propulsion engines and electric generating set imports followed by paper and cinema cameras. Sri Lanka is a GSP Beneficiary Country under the EU GSP Scheme, which gives an added advantage for Sri Lankan exports to Finland.

Bathiudeen and Suikkanen also emphasised on the progress of other forms of bilateral cooperation between both countries.

ICA to host 16th Congress in Sri Lanka

The International Colored Gem Stones Congress(ICA), the sole global think-tank which serves to benefit the colored gemstone industries have chosen Sri Lanka as its host country for its 16th congress to be held in May 16th - 19th, 2015 in Colombo at the Cinnamon Grand Hotel.

This is the second time that Sri Lanka will be hosting the prestigious ICA event which prides itself for uniting various segments of the colored gem trade. The theme for the event is `Sapphire and MORE`. A `Facets Congress Gem Show` will also be held from May 15th to 18th at same venue.

The event which is to be attended by leading international buyers, Gem and Jewelry academia, professionals, manufacturers, marketers and suppliers from all over the World has been poised as an occasion for networking and developing new business opportunities whilst showcasing the lucrative local gem and jewelry trade.

The ICA is in coordination with the main organizers, the National Gem and Jewelry Association of Sri Lanka (NGJA) and the Sri Lanka Gem and Jewelry Association (SLGJA) along with the Export Development Board (EDB) in planning and organizing this prestigious event.

ICA is a non-profit association which has a membership of over 500 members from 42 countries representing 75% of the purchasing power of the international market for colored stones.

The ICA often organizes congress on different issues ranging from promotion to the production of gemstones. The main purpose of the congress would be to link the various segments of the colored gemstone industry.

ICA to host 16th Congress in Sri Lanka

The International Colored Gem Stones Congress (ICA), the sole global think-tank which serves to benefit the colored gemstone industries have chosen Sri Lanka as its host country for its 16th congress to be held in May 16th – 19th, 2015 in Colombo at the Cinnamon Grand Hotel.

This is the second time that Sri Lanka will be hosting the prestigious ICA event which prides itself for uniting various segments of the colored gem trade. The theme for the event is “Sapphire & MORE”. A ‘Facets Congress Gem Show’ will also be held from May 15th to 18th at same venue.

Spice exports up 40% in 2013

Sunday Observer - 07/09/2014

Sri Lanka's spice exports rose 40 percent to $329 million in 2013 from $ 236 million in 2012. Spice export revenue was US$ 115 million in 2009, Export Development Board EDB statistics revealed.

As Sri Lanka's spice exports leaped by 40%, a new program was launched by the EDB last week to boost exports of the perennial crop. Meanwhile, a leading packaging consultant said that the Sri Lankan export packaging sector is now maturing with more ‘high barrier package’ visibility.

“The key factor is how to market our spices. Our spices are traditionally exported in bulk form. Sri Lanka now encourages value added exports and discourages raw exports.

We need an open dialogue among exporters, industry and the EDB to boost exports,” EDB Chairman Bandula Egodage told the first national packaging awareness seminar organised by EDB for spice and allied product exporters.

“The key factor is how to market our spices. The first impression from packaging tells a lot to the consumer. Production of raw material is encouraged but not exporting it, since value addition should be done here for much needed foreign currency,” he said.

“The primary objective of today's event is to create awareness on packaging quality. Second, to identify global trends - easy identification and novel appearance in packaging enhances brand value and creates additional sales. Third, we need an open dialogue among exporters, industry and EDB so that exports are boosted,” Egodage said.

“The global packaging awareness session is another initiative by the government to move spice exports, specially cinnamon, away from being exported in bale form to consumer-friendly packaging material,” said DG, EDB, Sujatha Weerakoone.

“This change in packaging not only assures quality but even build's Sri Lanka's image while increasing exports. Packaging should reach the consumer in its original condition,” she said.

“We invite the Lankan packaging sector to take part in various international trade fairs facilitated by the EDB but with your own financial arrangements. The internationally accredited ‘Pure Ceylon Cinnamon Global Certification’ lion logo was not given by the government to any particular company but only to a particular product design of the given company,” Weerakoone said.

“The ownership of Pure Ceylon Cinnamon Global Certification is vested with the EDB. This certification would give maximum value to our own true cinnamon, which faces competition from cheap cinnamon known as Cassia,” she said.

Lankan cinnamon exporter firms which were successful in fulfilling the criteria to win the official sanction for the use of the internationally accredited ‘Pure Ceylon Cinnamon Global Certification’ were awarded certification recently at the EDB.

“The design of the packaging sells the product. The 'packaging barrier’ determines the performance of the product, which in turn, determines whether the consumer will re-purchase it or not and therefore, it's a key ingredient,” said Packaging Consultant and a former top executive of an FMCG multinational, Abhaya Seneviratne.

“The ‘packaging barrier’ means to what extent the packaging material can keep the product inside without becoming spoilt by the environment,” he said.

“For instance, a high barrier plastic film packaging can seal spices well from seeping moisture and water, while the same spices packaged in a gunny sack could be contaminated due to the weak nature (low barrier) of the sack,” Seneviratne said.

Lanka-China FTA electrifies $8B global apparel giant to action

Asian Tribune - 06/09/2014

Mark Green (Executive Vice President of Global Supply Chain of New York’s PVH Corporation-left) meets Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka-right) in Colombo on 14 August.

The forthcoming Lanka-China FTA has electrified no less than a $8B global apparel giant who is also the world’s largest shirt maker. “We are very excited about the forthcoming Lanka-China FTA; having duty free market access to China is very important for us as an apparel sourcing firm and the benefits are great.

This is even more important for us since we have considerable income from Asia-30% of our turnover from Calvin Klein brand alone originates from Asia!” said Mark Green, the Executive Vice President of Global Supply Chain of New York’s PVH Corporation on 14 August in Colombo.


Executive VP Green was addressing Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on 14 August during his meeting with Minister Bathiudeen at the Ministry of Industry and Commerce, Colombo 3.

“Things are going very well with PVH. Recently we opened an office in WTC and reached $80 M business with Sri Lanka” said Executive VP Green, and added: “Since we acquired the global brand Calvin Klein the intimate apparel product line has become very important in our turnover. We are looking at working with Lankan apparel makers MAS, Brandix, Jinadasa, and Hirdramani Group–they are our big suppliers. We want to grow our business here further. Sri Lanka has been best in apparels, particularly intimate apparels in my experience. We source from around the world and one of the things I see is that Sri Lankan apparels is a role model for other countries to study and follow-because when you look at what you have done here in intimate apparels, its remarkable-lean manufacturing model which MAS started is probably a best in the world. Sri Lanka is also considered to be a world expert in apparels manufacturing-in compliance record, CSR and sustainability such as work on carbon neutral factory. When you compare with other apparel producers in the regions, Sri Lanka is way ahead and should be credited for that. PVH is seen as an American corporate but we are in fact Glocal in nature. We are very excited about the forthcoming Lanka-China FTA-having duty free market access to China is very important for us as an apparel sourcing firm and the benefits are great. This is even more important for us since we have considerable income from Asia-30% of our turnover from Calvin Klein brand alone originates from Asia! Having a production centre in Sri Lanka with duty free access to China market is very exciting for us. This is really exciting!”

The New York Stock Exchange (NYSE) listed PVH Corp (or Phillips-Van Heusen) is one of the largest lifestyle apparel companies in the world (and also reportedly the world’s largest shirts provider). Most of its brands are virtually household brands-Calvin Klein, Tommy Hilfiger, Van Heusen, IZOD, Bass, ARROW and Eagle. PVH reported $8.2 Bn in revenues in 2013, exceeding previous projections for 2013. PVC has 2035 stores across the world, 1025 of which are in Europe. PVH’s 2013 revenue projection stands at $8 billion.

Responding to Executive VP Green, Minister Bathiudeen said: “We are aiming for new levels of bilateral trade cooperation with China and under the leadership of HE the President Mahinda Rajapaksa. Sri Lanka-China FTA would create great opportunities for both countries. We have concluded joint feasibility studies on this FTA. Now we have started second round of negotiations. I am pleased to inform you that one of the items we look forward to make duty free in this historic FTA could be apparels! Under the guidance of HE the President Mahinda Rajapaksa, we are aiming to conclude the free trade pact during the forthcoming first ever visit of Chinese Premier to Sri Lanka. There is no doubt that this historic agreement would be a great opportunity not only for PVH but many such global multinationals who want to leverage our strategic hub positioning.”

According to the Department of Commerce of Sri Lanka, bilateral trade between Sri Lanka and China has grown by 15.2% in 2013 to $3.08 Bn from 2012’s $ 2.67 Bn. Sri Lanka’s exports to China in 2013 rose by 12.49% to $122 Mn from 2012’s $108.12 Mn. China has come within the first 20 export destinations for Sri Lankan products.

Also present at the 14 August session were Bandula Egodage (Chairman and CEO-EDB), RDS Kumararatne (DG-Department of Commerce) and M Raghuraman (CEO, Brandix Market Watch, Brandix Lanka Ltd).

Lanka export acceleration push begins

Asian Tribune - 08/09/2004

Rishad Bathiudeen (Minister of Industry and Commerce-second from left) briefs Anton Said (Chief of Export Strategy, ITC-second from right) about Sri Lanka’s export landscape on 13 August in Colombo as Anura Siriwardene (Secretary-Ministry of Industry and Commerce-far left) Bandula Egodage (Chairman & CEO, EDB-third from left) and Pablo Lo Moro (Senior Advisor-Export Strategy, ITC-seated far right) look on.

Exports, being the lifeline of Sri Lankan economy, is a national priority. The urgency of exports accelerating strategy is such that it could kick-start even before its full design cycle is over. Meanwhile, Brand Sri Lanka packs hidden potentials that could be leveraged for national export growth.

“At the end of the day the buck lands at somebody’s desk. Who is ultimately responsible? We can start implementing the export acceleration strategy while it is being designed and before it’s totally finalised. We may not need to wait until it is fully endorsed” voiced a determined Anton Said (Chief of Export Strategy, ITC) on 13 August in Colombo.

ITC Chief Anton Said was addressing the launch of EDB’s National Export Strategising initiative on 13 August in Colombo. The Export Development Board (EDB) -the national trade promotion organization specially vested with the responsibility for promotion and development of exports- is embarking on formulating the 2015-2020 National Export Strategy (NES) to achieve the $20 B export target by 2020 as set out in ‘Mahinda Chintana’.

The formulation of the 2015-2020 NES is carried out with technical assistance from International Trade Centre (ITC) Geneva and in consultation with the public and private sector stakeholders. NES formulation is also a statutory requirement under the Export Development Act No 40 of 1979. Geneva’s ITC is a subsidiary of the World Trade Organization (WTO) and the United Nations Conference on Trade and Development (UNCTAD) providing trade-related specialised technical assistance to exports of various economies-specially transition economies. ITC is no stranger to Sri Lanka; in 2010, ITC implemented a business survey in Sri Lanka in collaboration with Lanka Market Research Bureau Limited (LMRB).

Also taking part in the National Export Strategy formulation session of 13 August at EDB were representatives from the export community, various Chambers, EDB officials, and top government officials from many line agencies connected to exports.

Addressing the session Rishad Bathiudeen (Minister of Industry and Commerce) said: “This export strategy effort is carried out with valuable technical assistance from ITC and in consultation with the public and private sector stakeholders. As global markets are increasingly separating to groups of mature markets and emerging markets as well as consumer markets become more demanding we need to change our export strategies as well. In fact I have been given to understand that in International Trade Centre’s global assessment on Trade Promotional Organisations the ITC, recently indicated our EDB to be in par with some of the export agencies of highly developed economies. In that, ITC revealed that EDB is now in a ITC benchmark for the first time. This is encouraging news in our efforts to achieve $20 Bn exports by 2020 under the committed vision of HE the President Mahinda Rajapaksa. Thanks to our committed exporters and the Vision of our HE the President today, we are able to see a five year high in first half exports for 2014 at $ 5.4 Bn. This is a huge increase of 45.9% from year 2010’s first half exports of $ 3.7 Bn. There is no doubt that both ‘country branding’ and ‘export strategy’ always go hand in hand. To this end also there is good news for Sri Lanka exports. It is that Sri Lanka in its first effort entered at 67th rank in the Country Brand Index of “Future Brands”. Out of 118 countries surveyed Sri Lanka emerged at 67. Immediately above us is China at rank 66 while Vietnam ranked below us at 69 and Poland at 75. Despite the export successes of these countries Sri Lanka still has a stronger ranking. What this shows is Sri Lanka’s hidden market potential and it is time we leverage it for our export development. For us to leverage these international developments to our export growth we need to take viable steps. What is also should be stressed is that today’s strategy effort enables our exports sector to draw in private and public sector partnership. This is fundamental in our approach to national export strategy development, implementation and also the achievement of $ 20 Bn by 2020. Today’s National Export Strategy session is an important step in accelerating exports, and not just a mere fulfilment of the requirements stipulated in the Export Development Act No. 40 of 1979.”

Anton Said (Chief of Export Strategy, ITC), addressing the session said: “In 10 years the world has changed. Export acceleration strategy is the process and the realism need to be apparent in the final product. ITC’s mission is to enable developing economies and transition economies’ export success in the global economy. In last 12 years we developed over 50 strategies in 40 countries, and therefore we have lots of experiences in this business. National export document can provide a direction and a blueprint which if followed can lead to success. ITC’s approach to national strategy design and implementation is based on two fundamental objectives-to enhance international competiveness of enterprises and export orientation. Export enterprises do not exist in a vacuum. Export competitiveness is defined as cross cutting issues and constraints affecting multiple sectors-for example quality. The growth momentum needs to be acceptable to all players winning their confidence-including development partners. And all institutions and Ministries that define export success are part of this initiative. Prioritisation is an important challenge. We need to ensure that the established systems, structures, mechanisms of the country are effective-they need to be functional at policy level as well as operational level so that export momentum is sustained and accelerated. This initiative has to work through existing organisations and many Lankan initiatives such as hub strategy and “Unstoppable Sri Lanka” etc. Therefore our point of departure is using existing national strategies and to build on them. The success of exports depends on aggregate institutional network. At the end of the day the buck lands at somebody’s desk. Who is ultimately responsible? We can start implementing the export acceleration strategy while it is being designed and before it’s totally finalised. We may not need to wait until it is fully endorsed since we may know what the targets are, parties are and priorities are. After this we can move on to a detailed design. At that stage the principle sectors identified by the strategy will have their own detailed sub strategies in relevant areas such as trade financing, branding, quality management, trade promotion, packaging etc. The Consolidated National Export Strategy document will have an implementation management framework with measurements to track progress. ITC will be partner in this acceleration effort, help you to make the transition, and we are as available as much you need us. This is both a top down and bottom up approach. We want you to be passionate about your export strategy. Having a strategy is a huge milestone but not the end.”

Bandula Egodage (Chairman & CEO of EDB) addressing the event said: “Our exports are growing rapidly thanks to you, our exporters. Export revenues are at 20% of our GDP and we are confident that we can achieve the $20 Bn goal by 2020. This is due to the clear framework of Mahinda Chinthana, the visionary leadership of HE the President Mahinda Rajapaksa, the strategic economic controls of P.B.Jayasundara, the well supported economic development of Economic Development Minister Basil Rajapaksa and the committed leadership and guidance of Minister of Industry and Commerce Rishad Bathiudeen, Deputy Minister of Industry and Commerce Lakshman Wasantha Perera and Anura Siriwardene our Ministry Secretary. The reason we need an export strategy is that with limited resources, we may have to prioritise to further develop and accelerate it. Also it’s a statutory requirement and we need to have a microscopic view. We are fortunate to have ITC supporting us.”

Lanka vying for $3B rubber sector

Asian Tribune - 07-09-2014

Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka–second from right) and HE Azmi Zainuddin (Malaysian High Commissioner to Colombo-second from left) join to inaugurate Global Rubber Conference 2014 (to be held in October in Colombo) on 28 August in Colombo as Dr Abdul Aziz (Secretary General of International Rubber Research & Development Board-far left) and Bandula Egodage (Chairman & CEO-EDB-far right) look on.

As the first ever Global Rubber Confab to be held in Sri Lanka is announced on 28 August, the country positioned its historic rubber industry to be a $ 3B sector. And a top global rubber body voiced that rubber prices would recover ‘before very long’.

“We are now aiming at an ambitious $3B rubber industry in the coming decade. To arrive at this $3B in a viable manner, it is essential for us to support our rubber farmers. I believe it is time for a long term development plan for this sector. The 2013 rubber exports of $960 Mn is a 100% increase compared to rubber exports five years ago” said a keen Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on 29 August in Colombo.

Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka–left) greets Dr Abdul Aziz (Secretary General of International Rubber Research & Development Board-right) as HE Azmi Zainuddin (Malaysian High Commissioner to Colombo-centre) looks on at the inauguration event of Global Rubber Conference 2014 (to be held in October in Colombo) on 28 August in Colombo.

Minister Bathiudeen was addressing the launch event of Global Rubber Conference 2014 to be held in October in Colombo. The first Global Rubber Conference (GRC) ever to be held in Sri Lanka, it is co-organised by the Export Development Board under Minister Bathiudeen as well as Confexhub, Malaysia. GRC, a leading global conference on rubber sector, is held in collaboration with Sri Lanka’s Ministry of Industry and Commerce and Ministry of Plantation Industries, is to provide rubber and rubber products experts and policy makers, captains of industry and serious investors a platform to converge and meet face to face to discuss a wide spectrum of commercial, R&D developments and 2014-’15 price outlook.

Also taking part at the 28 August session were members of Sri Lankan media landscape, top reps from rubber manufacturing and exporting firms, officials from the collaborating Ministries, Sujatha Weerakoone (DG-EDB) and Dr Yousuf Maraikkar (ED-EDB).

Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka–right) addresses the inauguration event of Global Rubber Conference 2014 (to be held in October in Colombo) on 28 August in Colombo as Dr Abdul Aziz (Secretary General of International Rubber Research & Development Board-centre) and HE Azmi Zainuddin (Malaysian High Commissioner to Colombo-right) looks on.

“We know that natural rubber constitutes almost one third of world’s total rubber supply. It is also of great importance to a country like Sri Lanka not only because of its exports but also the employment rates on this sector which is considerable” said Minister Bathiudeen, and added: “As a result, our government, under the vision of HE the President Mahinda Rajapaksa, is now aiming at an ambitious $3B rubber industry in the coming decade. To arrive at this $3B in a viable manner, it is essential for us to support our rubber farmers. 65 percent of the total planted rubber in Sri Lanka are owned by such small farmers. Therefore for Sri Lanka, apart from country’s historic reputation for natural rubber, there is an important “socio-economic” reason to enhance this sector. In order to retain Sri Lanka’s historic reputation as a key player in rubber supply chain and also to overcome rubber industry issues, I believe it is time for a long term development plan for this sector. It would also be useful for us to introduce re-planting assistance. This could be funded by a temporary rubber cess, during times of high earnings from rubber exports. As for exports, I am pleased to say that in 2013, Sri Lanka exported $ 72 Million of natural rubber and another $887 million of rubber finished products. This 2013 total of $ 960 million is a 100% increase compared to rubber exports five years ago in 2009. I am also pleased to inform you that My Ministry has commenced two important initiatives for this sector at a cost of more than $ 46000. The two initiatives are creating the first ever Rubber Industry database and launching the national rubber research census by my Ministry. Our findings from the first national rubber census are interesting. So far we have completed it in Sabaragamuwa and Western provinces. Our development officers have found 203 rubber industries in both provinces. More than 10,000 rubber industry jobs are active in Western province with 815 new jobs being created in 2013. It was also found there is a lack of skilled people in support services such as die and mould design and manufacturing. We found that training is needed to be provided for all job categories in both latex rubber sector and rubber product manufacturing sector. In such a background, I believe that the forthcoming Global Rubber Conference in Colombo will be a great opportunity for our rubber industry to find solutions to these issues and move to the next level. I have no doubts that our industry stakeholders will make the most of this rare opportunity.”

“The rubber research institute of Sri Lanka was the first such in the world established in 1909. I was here when we commemorated first centenary in 2009” said Dr Abdul Aziz (Secretary General of International Rubber Research & Development Board), addressing the event. “So many research is done on this rubber tree. 70% of global rubber production goes to the tyre industry. Rubber is given centre-stage for its contribution to health. What is important is there are nine other species of rubber –we are only working with just one species here. Rubber research institutes are working on this-We are now working to go into Amazon jungle region with permission of Peruvian government to collect the other eight species-sometime next year. So you can imagine the benefits from these new species advantages of disease resistance, planting in marginal areas and new timber. The forthcoming GRC is an opportunity to be aware of latest R&D on this crop. At this moment rubber prices are not so conducive but you know that rubber always bounces back! We hope before very long rubber prices would recover” Dr Aziz said.

Bandula Egodage (Chairman and CEO-EDB), addressing the event said: “Sri Lanka is world’s sixth largest rubber exporter and 8th largest natural rubber producing country in the world. All rubber stakeholders are here today. This form of gathering of stakeholders is the need of the hour for rubber exports of Sri Lanka. Our plantation industry makes raw rubber while manufacturers produce rubber based products. The theme of government is to grow rubber aiming to increase raw rubber production in Sri Lanka. We discourage raw rubber exports. We are not curtailing raw rubber production in Sri Lanka but promoting rubber based exports. We need to go for value addition. We require high tech, foreign expertise, networking, awareness, research and development etc. That’s why EDB accepted Confexhub’s invitation to partner for this event.”