Sri Lanka seeks unrestricted market access from India for Sri Lankan exports

Colombo Page

Sri Lanka has sought increased market access from India for Sri Lankan exports as a solution to balance the growing trade deficit with India.

Sri Lanka made this request during a discussion with an Indian delegation arrived in the country to discuss trade and investment.

Indian delegation led by S.R. Rao Commerce Secretary, Government of India arrived in Sri Lanka to discuss trade and investment matters with a Sri Lankan delegation led by Dr. P.B. Jayasundera Secretary, Ministry of Finance and Planning and Secretary, Ministry of Economic Development.

The official talks between the two governments on trade, investment and economic cooperation, co-chaired by Dr. Jayasundera, and the Indian Secretary Rao, were held on 24-25 June 2013 in Colombo.

Anura Siriwardena, Secretary Ministry of Industry and Commerce and Prasad Kariyawasam, High Commissioner of Sri Lanka in New Delhi also were in the Sri Lankan delegation.

The bilateral trade between India and Sri Lanka surpassed US$ 5 billion mark last year but the trade turnover is not equally distributed and Sri Lanka has continued to experience higher trade deficit with its leading trade partner.

During the discussions the Sri Lankan delegation has pointed out that this trend is not viable and there is a need to take steps to increase exports from Sri Lanka to India.

Both sides have agreed that there was considerable potential to expand bilateral trade, in a balanced manner through optimal utilization of the opportunities available between the two economies.

As a solution, the two delegations have agreed to review the respective negative lists and address the removal of non-tariff barriers while establishing a mechanism for resolving trade disputes.

Both sides also agreed to expand the bilateral trade to US$ 10 billion over a period of 3 years, with due recognition to increasing exports from Sri Lanka.

Sri Lanka has emphasized the importance of addressing the growing trade deficit with India and requested market access, by removing prevailing quantity restrictions in the apparel, tea and pepper.

India has offered 8 million pieces of apparel to enter the Indian market without restrictions with immediate effect.

The Sri Lankan side has asked the facilitation of entry of value added products including apparel, high end tea, value added rubber products, floriculture and spices in to the Indian market to help moving ahead progressively towards higher export growth and investments.

Both sides have agreed that there was a need to resume ferry services between Colombo and Tuticorin and also Thalaimannar and Rameswaram.

The Indian Commerce Secretary has emphasized the need for targeted Indian investment with a view to assisting Sri Lanka widen its export base and enable integration into regional supply chains including in the automobile parts and light engineering and pharmaceutical sector.

The Sri Lankan side has emphasized the importance of bringing in more investments in the form of joint venture projects to encourage Sri Lankan private sector and state enterprises to work together in several areas.

Lanka, Eu trade on the rise

Daily News - 24/06/2013

Minister Bathiudeen with Ambassador Bernard Savage

As bilateral trade volume closes in on the crucial $ 5Bn mark, historic dialogue between Sri Lanka and the European Union appears to bolster even further. “We look for better trade levels and also thank EU for its on-going support,” said Rishad Bathiudeen, Minister of Industry and Commerce.

Minister Bathiudeen was addressing Ambassador Bernard Savage (Head of the Delegation to Sri Lanka and the Maldives from the European Commission) on 20 June during Amb. Savage’s farewell courtesy call on Minister Bathiudeen at the EDB premises, Colombo.

According to the Department of Commerce of Sri Lanka, there is an increasing trend in trade and the balance of trade between the two parties has been in favour of Sri Lanka during last nine years.

Total trade between Sri Lanka and EU which was at $ 3 bn in 2004 rose $ 4,946.18 mn in 2012. Sri Lanka’s major export items to EU are apparel, diamonds, tea and rubber products.

EU is also one of the most diversified investors in Sri Lanka, with leading European companies operating in almost all sectors of economy-specially, FMCG, higher education, apparel, infrastructure, manufacturing, agro, technology and even in strategic development projects.

Such EU multinationals as Unilever and British American Tobacco are well embedded to Sri Lankan lifestyle with their decades long FMCG presence.

The UK, Germany, Italy, Belgium, France and Sweden are the leading EU members with investments in Sri Lanka. EU’s specific investment segments include hosiery, knitwear, surf sails, electronic products, light engineering, rubber based products, (e.g. tyres), coir based products, gem and jewellery, diamond processing, tourism and recreational products, security printing, infrastructure development, activated carbon, food processing, computer software, ICT etc. “EU is our number one global trade partner. Our bilateral trade volumes show continuous growth and it has become a major element in our relations.

We look for better trade levels and also thank EU for its on-going support not only on trade aspects but even in various development initiatives here” said Minister Bathiudeen.

“Our cooperation with Sri Lanka is wide ranging including the assistance in tsunami and development. Even bilateral trade levels are showing a rising trend” Amb. Savage added.

According to the EU delegation, more than $ 148 mn (€ 112 mn) also has been earmarked for Sri Lanka under the 2007-2013 “Development Cooperation Instrument”.

China to open doors to Lanka’s apparel sector

The Sunday Times - 23/06/2013

By Bandula Sirimanna

 Sri Lanka’s apparel industry is to get a big boost as the world’s largest textile producer, China is exploring possibilities of opening its huge domestic market to the island’s garment exports, an industry heavyweight said.

Secretary General of the Joint Apparel Association Forum (JAAF) M.P. Tuly Cooray told the Business Times that their umbrella body is to enter into an agreement with the China National Garment Association to allow access for Sri Lankan apparel industrialists to penetrate the Chinese domestic market and also set up joint ventures to produce internationally branded products for overseas markets.

A high-powered, 20-member delegation from the Chinese association visited Sri Lanka recently and held preliminary discussions towards signing a Memorandum of Understanding (MOU) enabling Chinese apparel makers and top global retailers to shift their orders to Sri Lanka due to the rising labour cost in that country, he revealed. He noted that they aim to get duty free access for apparel from

Chinese authorities through another MOU recently signed between China and Sri Lanka to improve and strengthen bi-lateral economic relations between the two countries, particular on trade investment and tourism.

The JAAF has been advocating in the past two years for the need to negotiate market access instruments with new and emerging markets particularly with China as a priority market because of enormous potential it offers.

Although, China is also a top global exporter of apparel, China also imports apparel and in 2012 imports amounted to US $4 billion, he said.

“Our apparel industry which has evolved to be a mature international player is now a supplier to many leading brands and no longer supplies to the low end of the market,” he said.

Sri Lanka has carved out a niche market for itself and does not consider China to be a competitor as it aims to supply to higher end of market by manufacturing for Chinese local brands as well as exporting international brands through manufacturing bases in Sri Lanka, he added.

The vision of the industry is also to make Sri Lanka the apparel hub for Asia as Sri Lanka is no longer a basic manufacturer but a total solution provider with front and back end services to their clients, he revealed.

“Since China is switching over to the higher segment of the market and also the hi-tech industry, the country will need to import garment products. We should seize the opportunity to export our goods there,” he said.

“China has the world’s most complete industry chain, the most skilled workers and the most advanced production equipment, but they don’t have a world famous brand,” he said adding that “Sri Lankan apparel industrialists have already established links with world famous brands like Abercrombie & Fitch, Victoria’s Secret, Next, Levi’s, Marks & Spencer, Reebok, GAP and Banana Republic”.

Sri Lanka’s apparel exports to China were US $15 million in 2012. “With high level of GDP growth and rising per capita income the expanding middle class offers a lucrative market not only for foreign brands but also for Chinese local brands.

Processed food exports top $ 73 m

Sunday Observer - 23/06/2013

“In 2012, 26% of total food and beverages exports were processed foods, at $ 73.4 million.

Our overall processed food exports which stood at $ 67.1 million in 2010 rose to a strong $ 95 million in 2011,” said Minister of Industry and Commerce, Rishad Bathiudeen at the launch of the first International Food Safety and Compliance training sessions for Sri Lanka’s food exporters by Associate Professor of the Department of Food Science and Human Nutrition of the Washington State University, Food Scientist, Dr. Barbara Rasco, were held at the Ministry of Industry and Commerce.

The pioneering session was organised by the Sri Lanka Food Processors’ Association and the Ministry of Industry and Commerce with the Spice Council and VEGA-FEG. The sessions were held from June 11 to June 21.

Dr Rasco has contributed to 200 published scientific papers on Food Science.

She (with Dr Bledsoe) published the first book on Intentional Food Contamination, considered as a criminal practice, in which companies were shown how to deal with food terrorism.

She has worked with hundreds of firms, including Starbucks, Coca Cola, Kraft US, Dole, Cargill Inc and American Sea Foods. “Dr Rasco is a great contributor to global food science specially in the integration of the legal and technical aspects and tries to come up with practices for the global industry to make the overall value chain of food, much safer,” said Minister Bathiudeen.

“This type of awareness sessions are an urgent need which is being fulfilled today, considering that in 2012, 26% of total food, and beverages exports were processed foods totalling to $ 73.4 million. Our processed food exports which stood at $ 67.1 million, in 2010 strongly increased to $ 94.84 million in 2011. In 2012, it stood at $ 73.4 million. The slight decline is a result of the on-going, global market turmoil,” he said.“My Ministry has been extending considerable support to build Sri Lanka’s food processing sector. We allocated $ 197,000 to the Sri Lanka Food Processors Association for this initiative. The other key initiative is the annual Pro-Food Pro Pack exhibition. The 11th exhibition in this series will be held in August at the BMICH,” the Minister said.

“Dr Rasco’s main contribution to Food Science is the integration of the legal and technical aspects and trying to come up with rational practices for the global industry to make the overall value chain of food, safer.

“This is an export sector with strong potential and we need this type of initiatives to sustain our competitive edge,” he stressed. “I am happy to help Sri Lanka’s food industry to secure its exports competitiveness,” said Dr Rasco, who has extensive working background in 30 countries - mostly in Central, South and South East Asia. “Despite the difficulty to get into new export markets and despite being expensive, your food operators and exporters are doing the right thing by following regulatory compliance,” she said. “Americans are beginning to look for spicy food from Sri Lanka. I see new opportunities for Sri Lanka’s full bodied spicy food exports in the US,” Dr Rasco said.

“Representativess from more than 20 leading firms, including Elephant House and Coca Cola took part,” said Administrative Secretary of Sri Lanka Food Processors Association, Ivan Peiris. “This is the first time that a program of this nature took place in Sri Lanka.”

EXPORT DEVELOPMENT BOARD Ministry of Industry and Commerce Sri Lanka Partner Country Pavilion

Rishad, top Washington scientist start Lanka’s first Food Compliance

news.lk - 19/06/2013

For the first time in Sri Lanka’s exports history, on June 11, a renowned global food scientist began  to extensively train Lankan food exporters on the much needed international regulatory compliance rules.

Rishad Bathiudeen, Minister of Industry and Commerce of Sri Lanka said that processed food has grown to become a key component of Sri Lanka’s overall annual food exports. In 2012, 26% of total food and beverages exports were processed foods, at $ 73.4 Mn. Sri Lanka's overall processed food exports which stood at $ 67.1 Mn in 2010 rose to a strong $ 95 Mn in 2011 added the Minister.

Minister Bathiudeen was addressing the launching ceremony of fist International Food Safety and Compliance Training session by globally renowned Food Scientist Dr. Barbara Rasco, Associate Professor of the Department of Food Science & Human Nutrition of the Washington State University for Sri Lanka’s food exporters at the Ministry of Industry and Commerce.

The pioneering session was organised by the Sri Lanka Food Processor’s Association with the support of Minister Bathiudeen’s Ministry of Industry and Commerce in partnership with the Spice Council and VEGA-FEG. The sessions commenced on 11 June will continue up to 21 June.

Dr. Rasco, one of the few professionals in the world simultaneously practicing Food Law and Food Science as a Food Scientist, arrived in the island on Saturday (08 ).

She published the world’s first  book (with Dr Bledsoe) on intentional food contamination, considered as a criminal practice in which companies were shown how to deal with food terrorism. She has worked with hundreds of firms - including Starbucks, Coca Cola, Kraft US, Dole, Cargill Inc and American Sea Foods.

“I am happy to help Sri Lanka’s food industry to secure its exports competitiveness. I am also impressed with the level of sophistication of Sri Lanka’s food industry. You are very proactive” said Dr Rasco, who admitted her strong liking for Sri Lankan Jaggery and hot curries, and stressed: “despite the difficulty to get in to new export markets and despite being expensive, your food operators and exporters are doing the right thing by following regulatory compliance.”   She further said that Americans are beginning to look for spicy food from Sri Lanka and there will be new opportunities  for Sri Lanka’s full bodied spicy food exports in US.

Reps from more than 20 leading firms-including Elephant House and Coca Cola participated in the session.

Sri Lanka makes their presence felt at the Paperworld 2013 exhibition held in Frankfurt

The Paperworld International Trade Fair is  a specialized fair for office supplies, school supplies, stationery and paper products held annually. It is an important venue for developing new contacts and maintaining existing business relationships for Sri Lankan exporters in the printing and stationery industry.  It is well recognized by buyers to source gifts and premium products including Office and School Supplies and Christmas Decorations. 

Paperworld 2013, held in January 2013 at Frankfurt, Germany which provided a great opportunity for exhibitors and trade visitors to study and analyze the position of the competitors and global market trends in products and  prices.  It also provided an insight into innovative and eco friendly products made of environmental friendly materials.

Facts at a glance

 2,967 exhibitors and 83,206 visitors from all over the world participated in paperworld  2013

• Everything revolved around tomorrow’s trends, impulses and business opportunities.
• 66 countries presented their latest products and marketing concepts at the Paperworld, Creativeworld and Christmas world trade fairs in Frankfurt.
• With its comprehensive complementary programme, Paperworld was also a valuable source of impulses and ideas: important trends, such as the presentation of themed and product worlds, commercial purchasing, multi-channel strategies and sustainability, were taken up in business programmes, special presentations and forums.
• Almost 300 people attended Procurement Business Programme, which was aimed at buyers of commercial office materials from private companies and public authorities with 100 or more office workplaces. This is an increase of 70 percent over last year.

 Sri Lankan Participants – Country pavilion organised by EDB –Sri Lanka

• Amoha Pvt Ltd (Back to Earth)
• PrintXcel
• Graphic Sytems (Pvt) Ltd
• Nalaka Stationary
• CIC Holdings 
• Toppan Forms 
• Madhawee Printers

Recommendations made by the Sri Lanka Consulate General in Frankfurt Germany

Paper world, creative world, and Christmas world is an emerging market in Europe.

It presents enormous business opportunity for businesses in Sri Lankan in terms of presenting their creative and production capacity. It also gives an opportunity to Sri Lankan companies to meet with companies that are looking for prospective business partners in the east.

After the successful completion of Paperworld this year we encourage companies to make arrangements in advance to participate in next year’s event.

Contact the trade division of the consulate for further information and assistance