Sri Lanka InfoTech, firms in fast growth: industry chamber

Lanka Business Online - 25/07/2013

Sri Lanka's information technology and business process outsourcing sector has tripled exports and doubled the workforce in a little over five years, an industry official said.

The Sri Lanka Association of Software and Services Companies (SLASSCOM) say export revenues grew 182 percent to an estimated 600 million US dollars in 2013 from 213 million US dollars in 2007.
Total employment in the industry rose 100 percent to 67,000 in 2013 from 33,000 in 2007, the chamber's newly elected chairman Madu Ratnayake, from Virtusa, an information technology company said.


Companies in the sector also grew from 170 to 220 over the same period.

"As an industry, we made significant progress over the last five years," Ratnayake, said in a statement.

"This is tremendous growth from any stretch of imagination and is a result of a concerted effort from industry, academia, government and many other stakeholders."

Members of SLASSCOM make up most of the larger players in the export IT and BPO industry.

The industry has elected Mano Sekaram, chief executive of 99x Technologies, Indaka Raigama, chief executive of Navantis Sri Lanka and Virendra Perera, chief operation officer of Brandix Mercury Asia (Pvt) Ltd to its governing board for the current year of 2013/2014.

The industry is targeting a billion US dollars in revenues and 80,000 employed by 2016.

Rathnayake said that the industry also has significantly improved its global brand position over the last five years.


Sri Lanka has been ranked among the top 25 in the industry by US based A T Kearney, a consultancy firm while Gartern another American information technology research and advisory firm has also ranked the island in 30th place.

Morocco looking for more trade, JVS with Sri Lanka

Daily Mirror - 24/07/2013

Morocco has shown keen interest to boost trade and industrial cooperation with Sri Lanka.

“We need to expand our bilateral trade as well as our industrial cooperation. Investors from both countries can also enter into joint ventures in many sectors; we are strong in rubber and fishery -technologies that Sri Lanka can benefit from us considerably,” said Moroccan Ambassador to Sri Lanka, Larbi Reffouch during his recent meeting with Industry and Commerce Minister Rishad Bathiudeen at the Export Development Board.

“Morocco is the second biggest apparel supplier in the North African region, helped by no less than our bilateral FTA with USA. We are also located very close to EU markets, only eight miles away from Spain and just one hour by ferry to Southern Spain,” Reffouch noted.

According to the Department of Commerce, Sri Lanka exported tea, coir products and rubber based products to Morocco while spices and precious stones have been imported in small quantities to Sri Lanka from Morocco.

For the past few years, Sri Lanka has been reporting a favourable trade balance in its bilateral trade with Morocco, and in 2012, the total trade volume stood at $ 2.06 million of which $ 1.71 million consisted of exports.

Minister Bathiudeen welcoming the envoy’s suggestions said, our bilateral trade standing at $ 2 million shows huge unrealised trade potentials in future that we can jointly explore.

“The government has taken several initiatives in export market diversification and as a result, we see new market potential in your country. In fact, we are virgin markets for each other.

I also invite capable Moroccan investors to Sri Lanka’s apparel sector for synergies; we are well known around the world for our high quality and you are the second biggest apparel power in North Africa. On the other hand, we are closer to East Asian hubs.

I also invite a strong Moroccan delegation for the forthcoming CHOGM trade fair in Colombo.”

According to the World Economic Forum, Morocco is the best performing economy in North Africa in 2013. It’s also the biggest holder of phosphate reserves in the world.

‘Start making use of benefits given to industries’- Minister Rishad Bathiudeen

The Island - 19/07/2013

Rishad Bathiudeen (Minister of Industry & Commerce-centre) and Dr PB Jayasundara, (Secretary, Ministry of Finance and Planning-right) at the Forum on ‘Government Strategy for Industrial Development of Sri Lanka’ on 16 July held at the Ministry of Industry and Commerce, Colombo 3.

Industrialists should make the maximum use of the many facilities and benefits given to them by the government. "To develop our industry sector, the government has given many facilities to our industries and industrialists should start making maximum use of them. As the facilitators of industry development of Sri Lanka, we thank Dr PB Jayasundara, the Secretary, Ministry of Finance and Planning for directly meeting our industrialists on 16 July and successfully explaining and updating them on the government policies on industries" said Rishad Bathiudeen, Minister of Industry and Commerce on 16 July in Colombo, as quoted in a press communiqués issued by the ministry.

Minister Bathiudeen was acknowledging the speech and the assistance of Finance and Planning Secretary Dr Jayasundara at the Forum on ‘Government Strategy for Industrial Development of Sri Lanka’ held on 16 July at the Ministry of Industry and Commerce, Colombo 3. The Forum was attended by more than 95 leading exporters, Chamber representatives and industrialists of Sri Lanka. In addition to clearly portraying Secretary Jayasundara’s views to the crucial industry and export community, the two hour long, in-depth forum, also successfully resolved several sector specific issues raised by various industry sectoral reps present at the session.

"There are many tax concessions given to the industries. Also recent budgetary measures by HE the President Mahinda Rajapaksa has resulted in many new industrial initiatives that our industrialists should explore. Dr Jayasundara illustrated these to the Industrialists well" Minister Bathiudeen added. "The biggest obstacle we had for our development, the war, is over. In post conflict era, the biggest beneficiary is the private sector. There no more security worries, long transport delays in checkpoints and the additional security related insurance costs that you were once burdened with" said Dr PB Jayasundara, at the 16 July Forum.

Speaking on Taxes, Secretary Jayasundara said: "Under the vision of President Mahinda Rajapaksa, you all have got a bonus. He took a policy decision to rationalise tax. On the other hand, I ask exporters-if you can’t pay 12% export tax, then why export? Our taxes for SMEs are 12%, so is for the tourism sector, at 12%. You need to get your (export) products in good shape and make Sri Lanka the wonder of Asia."

Speaking on recent economic growth, Secretary Jayasundara said: "The government is criticised by some people on recent policy decisions but we took painful decisions and managed to keep the balance in the economic system. Also, our economy is strong. The Bank of Ceylon raised $ 500 Mn at short notice. And the Central Bank has done a first class job with the Rupee. For the fourth consecutive year, we have a declining budget deficit, last being 5.8%. The long term signal of this trend is that more ‘good money’ will come to you. And I am very optimistic about how Sri Lanka’s environment will turn out. But I am not sympathetic on change in rates of taxable computed profits. Taxes should be paid. Please help us to protect this tax regime since the government needs money to provide facilities. Countries will prosper, if tax rates prosper, and country will slide, if taxes fall."

Stressing that the export competitiveness, Secretary Jayasundara said: "We have to look for export markets elsewhere. The strategy of President Mahinda Rajapaksa is to ask for markets. ‘Don’t worry about competing there once you get there. First, ask for unrestricted market access from trade partners’ he said. We simply met Chinese and showed our product list, that’s all. China has responded to us very positively. Under Mahinda Chinthana we need to give a Sri Lanka brand identity in the sense that a few products are coming ONLY from Sri Lanka. This is the kind of vision that we all should share. You can continue to talk theories on exports as well as on export competitiveness. But as practitioners, you should understand that exports need not always be aimed at only lucrative markets. For example, there is a food import need in several African countries through the UN or WHO due to famine etc. Also, I believe that we need to deepen our economic ties with both India and Pakistan. These two markets provide unlimited potential if you are ready."

Anura Siriwardena, Secretary of Ministry of Industry and Commerce, said: "We need to appreciate the support from the Treasury for their on-going initiatives to uplift our industries. Without the assistance of the Treasury, our industrial development could lag behind."

Presidential Export Awards - 2010 & 2011

Tunisia invites Lankan apparel suppliers for a joint venture

news.lk - 13/07/2013

Tunisia, the fifth phosphate producer in the world and a high end, high speed apparel supplier to European fashion world is showing a new opening for Lankan apparel supply chains. And Tunisia is agog over Sri Lanka’s growth rates. “We are almost taken up by your strong GDP growth rates that exceed 6%. I congratulate Sri Lanka for its spectacular growth. When you specially compare with the world economic growth rate, it’s such a leading rate” said Tarek Azouz, Ambassador of Tunisia to Sri Lanka on Wednesday (10).

Azouz was addressing Rishad Bathiudeen Minister of Industry & Commerce during his courtesy call on Minister Bathiudeen at EDB premises in Colombo. Also present along with Minister Bathiudeen were Anura Siriwardena Secretary, Ministry of Industry and Commerce and Bandula Egodage Chairman, Export Development Board and officials from the Department of Commerce.

According to the Department of Commerce of Sri Lanka, bilateral trade between Sri Lanka and Tunisia does not show a growing trend or a regular pattern during the past five years. The overall trade transaction between the two countries is almost negligible, at less than one million Dollars ($ 0.64 Mn) in 2012. The main exports from Sri Lanka are rubber products, garments and tea.

“We are working towards getting down a Tunisian delegation to the forthcoming CHOGM sessions in Colombo. We get our Tea supplies from Sri Lanka and we prefer Ceylon Tea simply due to its high quality. Besides Algeria, we are the other supplier of Golden Deglet Noor dates to the world.

"We are now looking to enter into MoUs with various business and commerce chambers in Colombo so that bilateral trade linkages can kick-start through exchange of business delegations. We intend to show around our well-known technology, biology and pharmaceutical parks located in provinces to visiting Sri Lankan delegations.

"Due to our close proximity to EU markets and the trade arrangements with EU due to the EU-Tunisia Association Agreement, the high-end garments and apparel we export are manufactured based on the Just in Time (JiT) practices and within three days of their production, the apparels are available for sale in the counters of most European fashion retailers!

"Also, since Tunisia is a virgin market for Sri Lankan exporters, you can involve Tunisia as part of your export market diversification plan” said  Azouz and added:  “Tunisia is going through the first wave of liberalisation and privatisation process. We invite Sri Lankan apparel manufacturers to come into joint ventures with Tunisian apparel producers and use our close proximity to EU and our Just in Time apparel practices to increase their access to EU markets in such short (turnaround) times.”

In 1995, Tunisia became the first Mediterranean country to sign an Association Agreement with the EU. As a result of the agreement, a Free Trade Area (FTA) between EU and Tunisia came into being in 2008 for industrial products, which in turn, includes apparels.

Minister Bathiudeen, addressing  Azouz, said that with  almost negligible trade level between both countries, each other’s markets are virgin markets with vast development potential and therefore the unrealised trade potential is huge. The Minister further said that as fertiliser is being imported to Sri Lanka at high cost, Sri Lanka would welcome keen Tunisian investors and phosphate producers to Sri Lanka for ventures here to produce fertiliser at low costs.

Tunisian phosphate sector is ranked as the fifth largest in the overall global phosphate industry and Tunisia is also considered as a leading country in mineral fertiliser production.

Lankan business delegation in South Africa

Sunday Observer - 14/07/2013

The visit of a Sri Lankan business delegation to South Africa is a joint initiative of the Sri Lanka High Commission in Pretoria and the Sri Lanka Export Development Board (EDB) and Tea Board for the participation of Sri Lankan exporters at the SAITEX 2013 International Trade fair held at the Gallagher Convention Centre in Midrand from June 30 to July 2.

Leading Sri Lankan companies - DSI Tyres, Kelani Cables, Rathna Cinnamon Producers and Exporters, Queens Workwear, Nature's Secrets and Lalan Rubber - exhibited at the Sri Lanka pavilion while Basilur Tea Exporters and Sunshine Tea Exporters were at the Tea Board pavilion at the exhibition.


The High Commission of Sri Lanka organised a trade seminar in collaboration with the City of Johannesburg named 'Trade seminar -Joburg Vs Sri Lanka' on July 1, attracting more than 100 companies at the auditorium of the same venne.

Commercial Secretary, Sri Lanka High Commission, Nalika Kodikara made a comprehensive presentation, inviting leading companies to participate at the Commonwealth Business Forum to be held in Sri Lanka in November.

A business matchmaking program was organised by the High Commission of Sri Lanka in collaboration with the Cape Town Chamber of Commerce with the participation of members of the Cape Chamber and the ANC Progressive Business Forum (ANC-PBF). The session was chaired by the Co-Convenor of the ANC - PBF Renier Schoeman and past president of the Chamber Joe Emeran and the Commercial Secretary of the High Commission. Participation at the SAITEX international trade fair would help companies to strengthen their business relations with existing buyers and also to find new buyers.

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