Lanka rejuvenates a crucial export setup

news.lk - 12/07/2013

Rishad Bathiudeen (Minister of Industry & Commerce) addresses the ‘Soft launch of Expo 2014 and  appointment of members to the 26 Advisory Committees of the EDB’ event held at Kingsbury Hotel,  Colombo on 11 July.

“Today is an important day in Sri Lanka’s exports sector. We are appointing the Advisory Committees of Sri Lanka’s premier national exports organization, the EDB, and also launching the next international mega event in our exports calendar which is the ‘EXPO 2014” said Minister Bathiudeen, and added: “The global markets continue to show changing demand patterns, not only due to the recent global economic crisis but also as a result of long term fundamental changes in overall global consumption and shifting world market patterns. For example, 66% of the world market and population growth in the next century is expected to come from Africa."

Rishad Bathiudeen (Minister of Industry & Commerce-centre) launches Expo 2014 mega fair at the ‘Soft launch of Expo 2014 and appointment of members to the Advisory Committees’ event held at Kingsbury Hotel

Minister Bathiudeen was addressing the soft launch of Expo 2014 and appointment of members to the 26 Advisory Committees,at the EDB event held at Kingsbury Hotel, Colombo, Thursday (11).

“Export sector contributes 17% to the GDP. However, this sector has become more and more challenging for us. Therefore it is now time that we enhance our on-going market and product diversification even further. About 54% of our exports are still concentrated on EU and NAFTA markets” said Rishad Bathiudeen, Minister of Industry and Commerce of Sri Lanka.

The Minister observed that the rapid growth in China’s household consumption and their growing use of raw material has enabled it to become a major destination for our exports and in fact, the BRICS grouping is a promising new destination, for us. Therefore it is now time, that we enhance, our on-going market, and product diversification efforts, even further, said Minister Bathiudeen.  About 54% of our exports, are still concentrated, on EU and NAFTA markets.

Minister Bathiudeen pointed out that there are two segments with strong potential to become export growth drivers in the coming years. These two segments are Sri Lanka's high tech exports and export of services and they need even closer attention when formulating  future export strategies. Even though Sri Lanka's high tech and value added exports are only 1.5% of total exports, The Minister said the recent budgetary measures to upgrade our research and development infrastructure with the cooperation of private sector, is a positive step in this regard.

Sri Lanka's export sector after witnessing, two years of rapid growth in 2010 & 2011 experienced a setback in 2012 similar to many other countries in the region. However  despite these temporary setbacks,  export goal of US $ 20 Billion by 2020, under the committed economic vision of the President Mahinda Rajapaksa remains the same.

Rishad Bathiudeen (Minister of Industry & Commerce) hands over a letter of appointment to one of the 400 members appointed to the 26 Advisory Committees under the EDB at the ‘Soft launch of Expo 2014 and appointment of members to the Advisory Committees’ event held at Kingsbury Hotel, Colombo on 11 July, as Anura Siriwardena (Secretary, Ministry of Industry and Commerce-second from left) and Bandula Egodage (Chairman of EDB, far right) look on.

Banduala Egodage, Chairman of EDB, addressing the event, said:  “Setting up this Advisory Committee is a statutory requirement. This is one of the biggest advisory committees to be appointed under any single institution in Sri Lanka, with almost 400 brains in just one committee. I urge the fullest cooperation of the 400 members for us to get out of this export slump situation.”

The second in the revived international export fair in Colombo, Expo 2014 has now been tentatively scheduled for August 2014. It will be followed by the forthcoming CHOGM trade fair in November in Colombo

Sri Lanka has opportunities in export food processing

Lanka Business Online

Sri Lanka has to build capacity opportunities to be a processed food exporter, taking a cue from developments that occurred in East Asian nations such as Thailand and Vietnam, an Australia-based economist said.

Prema-chandra Athukorale, professor of economics at Australian National University said in Thailand 23 percent of non-oil exports were processed foods and in Vietnam it was 27 percent and in Sri Lanka only 5.0 percent.
He said global food habits were changing and there were opportunities for Asia food exporters.


"When I first went to Australia it was sometimes difficult to get rice," he told an annual economic policy summit organized by Sri Lanka's Ceylon Chamber of Commerce.

"But now there is an Asian section in every supermarket, and white Australians buy them."

In Sri Lanka the Eastern costs which had emerged from a 30-year war presented opportunities for aquaculture, he said.

At the moment Vietnam is helping Sri Lanka prepare a master plan for aquaculture and is also transferring technology to the island through a series of pilot projects.

Athukorale said exports of foods tied in with the current Sri Lanka administrations aim of developing agriculture.

Athukorale said industries should have an export orientation and be competitive while tariff protection import substitution industries tended to fail and has also failed in Sri Lanka in the past.

Free trade advocates say tariff protected industries go through the motions of production while fleecing and oppressing the poorest in society but make profits by arbitrating the tax differential.

Athukorale said it was helpful to have links and investments from the exported country especially due to tight food and sanitary standards imposed by developed nations.
In the case of Australia he said Mitsui, a big Japanese conglomerate that had an abattoir in Australia had helped get over potential problems and import restrictions, he said.

Analysts say Sri Lanka tea growing and manufacturing industry also grew in the 1800s with foreign direct investment mainly from the UK as the British developed a taste first for coffee and then for tea.

It is not clear whether made tea was considered a processed tea.

Athukorale said in East Asia there was a strong link with foreign direct investments and exports and a conducive environment was needed for investors to come.

Govt. says new standards for Ceylon Cinnamon to boost Sri Lanka’s exports

Daily Mirror - 10/07/2013
By Ashwin Hemmathagama

New regulations were tabled in Parliament yesterday to standardize and improve the quality of the centuries old cinnamon industry in Sri Lanka by shifting the focus from popular export crops – tea, coconut, and rubber – to the value added cinnamon in the international market.

These regulations published in the Gazette Extraordinary 1813/15, prohibits the export of crushed or ground cinnamon, cinnamon organic, cinnamon quills cut, cinnamon in retail packs of 1kg or less, cinnamon featherings, and cinnamon chips, or cinnamon in any other form being exported without the SLS81:2010 certification specified for Ceylon cinnamon.

According to the new regulation, the Government expects all cinnamon exporters to furnish a certificate of conformity with the Sri Lanka Standard stipulated for cinnamon issued by either laboratory accredited for testing of the particular article or a laboratory recognized by the Sri Lanka Standards Institution in addition to the certificate of clearance issued by the Director General of Sri Lanka Standards Institution.

According to Minister of International Monetary Co-operation and Deputy Minister of Finance and Planning Dr. Sarath Amunugama, the new regulations will enable the authorities to develop the brand “Sri Lanka cinnamon”, which will be of high quality and able to compete in global markets against the substandard cassia.

“Cinnamon is what brought foreign invaders – the Portuguese, Dutch, and English to Sri Lanka. This traditional cinnamon trade survived for several centuries and now at the verge of collapse unless its quality improves and a brand is developed,” the Deputy Minister said.

Amunugama said that equal recognition should be given to cinnamon industry, which employs over 350,000 families. “We receive an annual income of US$100 million from the cinnamon sector where exports have reached 13,000MT. However, the competition is getting tense despite the economic downturn in Europe. As a result, the demand has reduced and substandard cinnamon products made out of cassia have emerged,” he explained.

The new regulations would enable Sri Lanka to brand Cinnamon grown in this country as ‘Sri Lanka Cinnamon’ similar to the branding of Ceylon Tea. “We will also train the families engaged in cinnamon trade and arm them with the latest technology. We need to stop low quality cinnamon exports,” said Minister Dr.Amunugama moving the regulations under the Imports and Exports (Control) Act.

Prime Minister and Minister of Buddha Sasana and Religious Affairs D.M. Jayaratne who approved the Government move to standardize the cinnamon trade suggested exporting indigenous fruits and vegetables. According to Prime Minister, exporting fruits and vegetables “especially to China will help to reduce the widening trade deficit”.

Gems and jewellery sector records strong growth

Sunday Observer - 07/07/2013
By Sanjeevi Jayasuriya

The country’s gem and jewellery industry continues its growth momentum with increased export revenue for the first six months of 2013.“We could observe a steady growth in export revenue generation. The growth momentum in the sector augurs well for related industries where its contribution to the national economy becoming more significant,” said Chairman and CEO National Gem and Jewellery Authority, Amitha Gamage.

“We are confident that if this growth momentum continues the gem, jewellery and diamond sector will reach $ one billion by 2016, he said.

The NGJA being the Government body mandated to develop, regulate and promote the gem and jewellery industry in Sri Lanka has organised Sri Lankan Pavilions in several international gem and jewellery exhibitions in China, USA and Singapore.

These countries have been identified as booming markets for gem and jewellery.

Gamage said that the NGJA representative at the annual conference of International Coloured Gemstone Association (ICA) spoke on the importance of organising ICA 2015 Congress in Sri Lanka, an important gem bearing country.

He said that by hosting ICA Congress 2015 in Sri Lanka, the NGJA hopes to gain immense publicity for Sri Lankan gems, traditional and modern Sri Lankan craftsmanship, highly skilled gem cutting facility and the hospitality of Sri Lankans. The event could help build a strong image of the country.NGJA organised the Sri Lanka Pavilion at the JCK Las Vegas Show, one of the biggest gem and jewellery exhibitions in the international event calendar from May 31 to June 2. The NGJA Pavilion had eight Sri Lankan gem trading companies, where there was demand for jewellery made out of precious metals such as gold, platinum and base metals. Therefore, the NGJA plans to further promote Sri Lankan jewellery manufacturers at the JCK Las Vegas 2014 exhibition.

Gamage said that NGJA will encourage the gem and jewellery trading community to venture into new markets such as Poland, Russia, Ukraine and will organise ‘Sri Lanka Pavilions’ at two gem and jewellery exhibitions in China this year. Exhibitions of this nature will the pave way for exposure and opportunities for the gem and jewellery industry to introduce world-renowned brands in Sri Lanka for backward integration keeping in line with the Government’s development strategy which emphasises value addition to make products globally competitive.

Gem and jewellery exports increase

Daily News - 05/07/2013

• Gemstone export revenue tops Rs 1,635 million
• Jewellery exports record Rs 301 million

by Sumanachandra Ariyawansa

Eager buyers at the Singapore International gem and jewellery show which was opened at the Marina Bay Sands Hotel ,Singapore yesterday. The show will be held till July7

Sri Lanka’s gem, diamond and jewellery export sector has recorded an overall growth of more than 50 percent as at end of 2012. Revenue has increased significantly in comparison to the corresponding year’s figure of Rs.24,459 million in 2011.Therefore, Sri Lanka could be promoted as a gem and jewellery hub in the region, a senior official said.

The export of gemstones brought in revenue of Rs 1,635 million recording a 39 percent growth while jewellery exports generated revenue of Rs 301 million showing an impressive 121 percent growth. The service cutting industry showed signs of recovery by recording an Rs 26 million income with a 50 percent growth.

“Sri Lanka is exporting gems to several countries which have shown a keen interest in fine quality blue sapphires of large sizes and the prices fetched by unheated sapphires were unprecedented.

Therefore participating for an event like “Singapore International Jewellery Show” for the seventh consecutive year would help to promote our gem and jewellery products internationally” National Gem and Jewellery Authority (NGJA) Director General R.M.Janaka Udaya Kumara Daily News Business. Sri Lanka retains a world market position as a producer of fine quality gems and has some of the greatest varieties of gems in the world.

Therefore, Singapore being the fourth largest importer of Sri Lankan gems has given the country partner status at this exhibition from its inception, which is one of the big opportunities to strengthen trade links, he said.

In the export market promotion programme this year, the NGJA intends to organize “Sri Lankan Pavilions” in a number of international gem and jewellery events including this event “Gem and Jewellery Show Singapore 2013.In this event we got a very spacious pavilion to exhibit our gem and jewellery, he said.

According to Janaka Udaya Kumara ten countries and 200 exhibitors are participating in the event, which is a good opportunity for Sri Lanka to enhance trade links and promote our gem and jewellery in order to position Sri Lanka as a gem hub in the region. Further, the government has identified the gem and jewellery industry as one of the thrust areas of development, which has given unprecedented incentives to the sector through the last budget, which helps the country to promote itself as a hub in the region in future, he said.

The Director General said with this development they are now in the process of promoting eco friendly mining practices among local gem miners, which was the need of the hour to promote this sector in a more sustainable way.

The U.S.A., Thailand, Hong Kong, Switzerland, Italy, France, India, Malaysia, Singapore, China, Canada and Germany are among the top export destinations for Sri Lankan gems and Jewellery.

Today we are promoting our products in world class trade fairs and exhibitions held in many countries such as the U.S.A., Japan, Hong Kong, Switzerland, Thailand, Malaysia, Singapore, China, India and France, he said.

There will be several mega events such as the Jewellery Shanghai Show, Hyderabad Jewellery, Pearl and Gem Fair, Hong Kong International Jewellery Show, Malaysia International Jewelex, China International Jewellery Show (Beijing) and China International Gold, Jewllery and Gem Fair (Shanghai) during this year.

EDB to develop medical, health tourism

Daily News - 02/07/2013

The Export Development Board (EDB) has identified the potential growth of global Medical Tourism sector and capability of Sri Lankan medical and health tourism providers. EDB has requested assistance of International Trade Center (ITC) to develop this sector.

Accordingly ITC decided to have a case study in Sri Lanka health /medical tourism sector to access the capabilities of Sri Lanka in this sector and to benchmark Sri Lankan capabilities compared to the global Medical Tourism Industry.

An ITC delegation comprising an ITC official and an ITC consultant on Medical Tourism sector visited Sri Lanka

During the visit, they met top level representatives from hospitals practicing western medicine along with the officials from the Ministry of Health and other western medicine sector stakeholders.

Also they met the representatives of Ministry of Indigenous Medicine along with top level representatives from Ayurveda health resorts.

They also visited a cross section of the private hospitals and Ayurveda resorts to get a firsthand experience.

Export Development Board of Sri Lanka gets new Board of Directors

EDB Board of Directors with Minister Bathiudeen

The new Board of Directors was appointed to the Sri Lanka Export Development Board on 27th June. Here Industry and Commerce Minister Rishad Bathiudeen (fourth from right) and Secretary Anura Siriwardena (third from right) with the new appointees: From left: Rohantha Athukorala, Dr. Chameera C. Yapa Abeywardene, Nawaz Rajabdeen, Bandula Egodage (Chairman), Dr. Yousuf Maraikkar (Executive Director) and Sharass M. Zuaib.

The Sri Lanka Export Development Board, usually known as EDB, is Sri Lanka’s apex organization for the promotion and development of exports and was established in 1979 under the Sri Lanka Export Development Act No. 40. EDB is the executive arm of the Export Development Council of Ministers, which is the policy-making body of the EDB. It is headed by H.E. the President of Sri Lanka.