Committee to boost trade, investment with France

Lanka Business Today - 06-08/2013

The Sri Lanka – France Business Council (SLFBC) which functions under the aegis of the Ceylon Chamber of Commerce held its 9th Annual General Meeting at the Ceylon Chamber of Commerce recently. The Council was inaugurated on February 4, 2004 with a primary objective of promoting trade, investment, tourism and services between Sri Lanka and France and to promote mutual understanding and strengthen the relationships between Sri Lanka and France.

Christine Robichon, Ambassador of France and Patron of SLFBC graced the occasion as the chief guest.  Congratulating the newly appointed Committee she underlined that activities such as visit to France early this year demonstrated the usefulness of exchanging business delegations both ways. It was also mentioned that the partnership between the Embassy and Business Council went deeper with the successfully organised Symposium on Urban Development recently and the Embassy will continue to closely work with the Council in the future.


Dilipan Tyagarajah, President, Alstom was re-elected as the President of SLFBC for the Year 2013-2014.  Addressing the members, Tyagarajah highlighted some of the significant activities undertaken by the Council which includes; the discussion on “Trade Policy of the EU – The Main Export Market of Sri Lanka” which was held in October 2012, Trade & Investment Promotion Mission to France and Belgium in February 2013 which was a joint collaboration of SLFBC and ECCSL, Meeting with the newly appointed Ambassador to France, Prof. Karunaratne Hangawatte in April 2013 and the successfully concluded Symposium on French Expertise in Urban Development in July 2013 which was organised in association with the Economic Service of the Embassy of France.

Mr. Tyagarajah ensured that the Council would continue to closely work with the Economic Service of the Embassy of France, Embassy of Sri Lanka in Paris, Board of Investments of Sri Lanka and Export Development Board in order to facilitate the promotion of bi-lateral trade relationship between Sri Lanka and France.

The two Vice Presidents elected Asanka Ratnayake, Director, Hayleys PLC and Senaka Amerasinghe, Managing Director, Carmart Ltd.

The Committee members for the Year 2013-2014 include Samantha Rajapaksa, Managing Director, Associated Motorways (Pvt) Ltd., Shano Sabar, Director, CMA-CGM Lanka (Pvt) Ltd., Navindra Abeysekera, Director, Delmege Forsyth & Co. Ltd., Anurag Kak, Managing Director, Lafarge Mahaweli Cement (Pvt) Ltd., Shiraz Karunaratne, Chief Executive Officer, Noyon Lanka (Pvt) Ltd., Denis Gruhier, General Manager, Cinnamon Lakeside Hotel.

Past President - Nirmali Samaratunga, Chairperson and Joint Managing Director, Mackwoods Ltd., Jean-Louis POLI, Economic Counsellor of the French Trade Commission, Nilupul De Silva, Director Promotions, Board of Investment, Jeevani Siriwardena, Director – Market Development, Sri Lanka Export Development Board, Mahesh Amalean, Chairman, MAS Holdings Ltd. would also serve the Committee by Invitation.

June exports record commendable growth

Sunday Observer - 04/08/2013

By Sanjeevi Jayasuriya

The country’s exports earnings for June recorded commendable growth. However, it is necessary to have the right balance between commodity and cost.

According to provisional Customs data, Sri Lanka is heading in the right direction despite challenges. Exports to our key markets the USA and EU, especially to USA have shown a satisfactory increase in June 2013, Sri Lanka Export Development Board (EDB) Chairman and Chief Executive, Bandula Egodage told Sunday Observer Business. The problems in our key markets indicate that we should focus on diversifying our markets to other regions. The Asian region comprising China and India has registered substantial economic growth, he said. 

“Accordingly, we are concentrating on diversifying our markets in these regions. The potential is high in the other member countries in the BRICS group. This will be done while sustaining our market share in existing markets,” Egodage said.

“We need to create a triple win situation benefiting the export community, the country and the facilitator. The export sector of Sri Lanka after showing strong growth in 2010 and 2011 experienced a setback in 2012. The turmoil in key markets lead to a drop in demand not only for our exports but also exports of other developing and emerging economies,” he said.

“We strongly believe that private-public partnership is essential for growth and development of the export sector. This partnership is important not only to formulate successful export development strategies but also in implementing it,” Egodage said. “We have already carried out promotional programs in India and China with many in the pipeline for better penetration. The strategic plan prepared by the EDB in consultation with the Advisory Committees has been updated to cover the period 2012 to 2016,” he said.

It contains several programs aimed at developing and adopting products and services to meet international market requirements, assisting exporters to identify new markets, facilitate supply chain efficiencies and promoting export-oriented SMEs, he said.

The EDB is also focusing on branding as a strategy to increase the popularity of our products and enhance export earnings. The government’s vision is to transform Sri Lanka into a strategically important economic centre.

Lanka apparel exporters log on live to global Asycuda network

Asian Tribune - 01/08/2013

Rishad Bathiudeen (Minister of Industry and Commerce-centre) and Anura Siriwardena (Secretary, Ministry of Industry & Commerce-right) prepare to launch Sri Lanka’s log on to Asycuda World on 30 July at the Ministry of Industry & Commerce, Colombo.

Sri Lanka’s non-BoI apparel exporters have been now integrated to the crucial global network called Asycuda World (of UNCTAD). And having overcome the global recession, our apparel exports are now back on track-with good news. “Today, Sri Lanka’s apparel sector is entering into a new phase.

As a result of Sri Lanka’s non-BoI apparel manufacturers directly integrating into the online ‘Asycuda World’ system, we have now cleared a major bottleneck in our apparel exports” announced Rishad Bathiudeen, Minister of Industry and Commerce on 30 July in Colombo. Minister Bathiudeen was addressing the implementation event of the Asycuda World export documentation system for non-BoI apparel exporters held 30 July at the Ministry of Industry and Commerce.

Also present during the event were Anura Siriwardena (Secretary, Ministry of Industry and Commerce), officials from the Department of Customs, reps from various Chambers, and reps from the apparel exporter community, and textile officials of Minister Bathiudeen’s Ministry, among others. Integration of non-BoI apparel sector to Asycuda World network is expected to save more than 8200 man hours to them, annually.

“Our apparel exporters are joining a global network by UNCTAD in which 85 other countries are already part of” said Minister Bathiudeen, and added: “With our apparel’s entry to Asycuda World, we have now cleared a major bottleneck in our apparel exports. In that, with this integration, our non-BoI apparel manufacturers can successfully eliminate the present manual submission of custom documents (custdocs) and can directly submit custom declarations, to the customs and has become partially paperless. The result is that unnecessary travel time reduced, less bureaucracy, and less document processing by the non-BoI apparel exporters for their every single shipment. In fact, they can now submit customs declarations directly from their factories thereby paying better attention to their manufacturing and increasing apparel exports. Also, the Proposed Shipment Declaration (PSD) documents too will go online in the due course. I thank the Department of Customs for their on-going support in this regard.”

Speaking on apparel exports volumes, Minister Bathiudeen revealed: “I am pleased to say that Sri Lanka’s apparel exports are recovering from the impact of global recession thanks to the economic vision of HE the President Mahinda Rajapaksa. Overall garment exports which ‘include apparels and other woven fabrics’ too, have increased in first half of 2013 by 1.5% to $ 1,994 Mn, in comparison to 2012’s first half which stood at $ 1,964 Mn. This year’s ‘apparel only’ export value totalled $ 1,873 Mn, also at same levels of 2012 first half ‘apparel only’ exports at $ 1874 Mn. In fact, in 2012, our total apparel exports stood at a strong $ 3.77 Billion.”

“This is a great initiative” said MPT Cooray, Secretary General of Joint Apparel Association Forum (JAAF). “Cost is a major factor for us and lowering cost directly impacts our competitiveness. Reduction of transaction costs can help us in a great way. This electronic documentation we have been asking for, is an important step in this process. This new system does exactly that and also saves our time greatly, so that resource costs are also minimised. What we are trying to see in the eventuality is a total paperless system.”

Govt. grants tax incentives to port users, enterprises to boost exports

Daily Mirror - 31/07/2013

President Mahinda Rajapaksa who is also the country’s Finance Minister has declared Sri Lanka’s four main ports, Colombo, Hambantota, Trincomalee and Galle as ‘Free Ports’.

Additionally, the President declared the Mattala Rajapaksa International Airport, the Katunayake Export Processing Zone and Koggala Export Processing Zone as ‘Bonded Areas’.

The declaration entitles enterprises which are 65 percent foreign-owned and operating through the specified areas to wide tax exemptions including provisions under the Customs Ordinance and Exchange Control Act.


In the case of port users, with the exception of port handling, rent and lease charges, all additional levies will be waived.

The minimum investment for enterprises involved in import, minor processing and re-export stands at US$ 5 million with a further requirement of US$ 20 million in re-export turnover within a 5 year period.

Meanwhile, enterprises involved in export without manufacture or value addition in Sri Lanka, the management of finance supply chain and billing operations or front-end services to clients abroad were required to invest a minimum of US$ 1 million and achieve re-export revenues of US$ 10 per annum.

Enterprises involved in logistics services including bonded warehouses were given a US$ 3 million minimum investment and US$ 15 million p.a. minimum re-export revenue within a 5 year period.

While granting significant incentives to port users and enterprises, the Bonded Areas and Free Ports will deprive the government of significant revenue.

In that backdrop concerns have been raised as to whether or not gains generated through the fresh incentives are capable of offsetting extensive debt obligations tied to large scale developments embarked on.

Despite drawbacks, exports up in June: Mr. Bandula Egodage

Lanka Business Today - 30/07/2013

Despite the drawbacks of the anticipated economic recovery in the European Union and the United States not taking place and also the unsettled conditions in the Middle East, there has been a commendable increase in the country’s export earnings in June this year, said Bandula Egodage, Chairman and Chief Executive of the Sri Lanka Export Development Board .

Addressing the 16th annual general meeting of the Exporters’ Association of Sri Lanka as the guest of honour, Egodage said that according to provisional Customs data, Sri Lanka’s export earnings had recorded a commendable increase in June this year and exports to our key markets USA and EU, especially to the USA, had also shown a satisfactory increase in the same month.


“The export sector of Sri Lanka after showing strong growth in 2010 and 2011 experienced a setback in 2012 which continues to prevail even in this year. The setback is mainly due to the aggravated economic conditions in our key markets. The turmoil in these markets has lead to a drop in demand not only for our exports but also for exports of other developing and     emerging economies. Also there are supply side constraints in the domestic front,” said the EDB chief.

The anticipated economic recovery in EU and USA which absorb nearly 50% of our products had not taken place. According to international agencies such as the IMF it would take some time for growth to pick up in those regions. The unsettled conditions in the Middle East have further aggravated the situation, he added.

“The problems in our key markets suggest that we should focus on diversifying our markets to other regions. The Asian region comprising China and India have registered substantial economic growth. Accordingly, we are concentrating on diversifying our markets to these regions and other member countries in the BRICS group where the potential is high. This will be done while sustaining our market share in our key existing markets.

“We have already carried out promotional programmes in India and China and some more programmes are planned in the future to be carried out in these regions. We have also carried out market studies on Brazil and South Africa to ascertain the opportunities and barriers. The objective is to formulate suitable strategies to penetrate into these markets.

Expressing confidence that the Exporters’ Association could make a very positive contribution to these efforts using their close relationship with relevant stakeholders nationally and internationally, he said that utilizing those strong links the Exporters’ Association could facilitate to create healthy business relationships to enhance Sri Lanka’s exports.

The Exporters’ Association which represents about 80% of exporters in the country is the foremost body for exporters in Sri Lanka. The EDB highly appreciated the contribution of the Association towards the export development effort of the country. The export sector which contributes 17% to the GDP of the country, clearly played an important role in achieving that objective, said the EDB Chairman.

The EDB is the premier state organization entrusted with the task of developing and promoting exports from Sri Lanka. The EDB is geared towards promoting products and services of the country with the objective of making Sri Lanka the most sought after destination for global sourcing in identified product sectors.

Egodage also pointed out that the EDB strongly believed that the private/public partnership was very essential for the growth and the development of the sector. Private public partnership was not only essential for formulating successful export development strategies but also in implementing the same, he noted.

“Our approach is based on the principle that the public sector plays the facilitator role in developing the export sector while the exporters drive the sector,” said Egodage.

The public private partnership is also enshrined in the EDB Act. The enactment has provisions for establishment of Advisory Committees that are oriented towards the development and promotion of specific products as well as functional aspects of export trade.

In July this year the EDB had established 26 new Advisory Committees comprising 400 members. These members represent both the private and public sector. This will enable EDB to work together to identify the problems confronted by the export sector and find suitable solutions to such problems. The EDB has already scheduled the inaugural meetings of these committees and it expects the full participation of all members.

“Sri Lanka has today become an ideal location for international buyers, to source a wide range of highly quality products and services. But our competitive advantage has been deteriorating over the years due to a number of factors,” observed the EDB Chairman adding that the government had maintained inflation rate at a single digit level which was a positive factor.

“The energy cost is a major component in the cost structure. The government has offered tax concessions for industries adopting alternative energy sources. It is very important that we improve our productivity to regain and sustain our competitive advantage. The government has also offered tax incentives for upgrading technology and acquisition of new technology.

Improvement in technology is very essential to produce innovative products and reduce cost of production. This would lead to improved productivity and competitiveness,” said Egodage.

The EDB is also focusing on branding as a strategy to increase popularity of our products and enhance export earnings.

The strategic plan prepared by the EDB in consultation with the Advisory Committees have been updated to cover the period 2012 – 2016. It contains several programmes aimed at developing and adopting products and services to meet international market requirements, assisting exporters to identify new markets, facilitate supply chain efficiencies and promoting export oriented SMEs, etc.

Pointing out that the EDB intended to implement those programmes for the benefit of the export sector, Egodage said that, “I would request you to have a close rapport with the EDB to discuss any issues or constraints which require our attention.”

The Chairman and Chief Executive of Hayleys Group, Mohan Pandithage was the Chief Guest and the keynote speaker at the AGM. Rohan P, Daluwatte, Senior Manager - Operations & Logistics, Tea Tang Ltd assumed responsibility as Chairman for EASL whilst Sarada De Silva, Chairman and Managing Director of Intercom Limited was elected as 1st Vice Chairman and Fazal Mushin, Director – Export & Business Development, Link Natural Products (Pvt) Ltd was elected the 2nd Vice Chairman respectively. Mrs. Dawn Austin, Managing Director of Nidro Supply (Pvt) Ltd, stepped down as the chairperson of the EASL after serving in the committee in the said capacity for two years.

FACETS Sri Lanka to take centre stage for 23rd year

Lanka Business Today - 25/07/2013

FACETS Sri Lanka 2013, the International Gem and Jewellery Show that showcases hundreds of local and foreign exhibitors, will be held from August 29 to September 1 at the Sirimavo Bandaranaike Memorial Exhibition Centre. This year’s exhibition will comprise over 150 booths with a variety of gem and jewellery that include precious and semi-precious gems.

Organized by the Sri Lanka Gem and Jewellery Association (SLGJA), FACETS Sri Lanka enables all gem and jewellery traders to display market collections and also help create awareness about the importance of the gem and jewellery industry in Sri Lanka. Additionally, the event will consist a seminar on 'Gem and Jewellery in Sri Lanka' conducted by an expert panel of local and International panelists.

FACETS Sri Lanka 2013 encompasses individual exhibitor pavilions from Myanmar, The National Gem and Jewellery Authority (NGJA) and an SME pavilion from the Sri Lanka Export Development Board (EDB) . In addition, buyer delegations from USA, China, Russia and India will also be arriving. Stall holders from Singapore, Dubai, Myanmar and India will be participating at the event.

Speaking about the event, Juzar Adamaly, Chairman of FACETS Sri Lanka 2013 said, “Over the past 22 years, this exhibition has steadily grown to become a world-renowned show with active participation by Gem & Jewellery importers, wholesalers, manufacturers, retailers and collectors worldwide.”

He added that buyers looked forward to purchasing some of the world’s finest gems and jewellery directly from the source at this event. “This year we are expecting a record number of exhibitors and visitors as well,” Adamaly added. “With the industry looking at reaching US$ 1 Billion by the year 2015, this exhibition will continue to boost local sales and improve the brand of Sri Lankan Gem and Jewellery globally,” he further stated.

Established in 1984 as the Sri Lanka Gem Traders Association, and changed its name to Sri Lanka Gem & Jewellery Association in 2002, the Sri Lanka Gem and Jewellery Association (SLGJA) is the apex private sector organisation representing the interests of all industry sub-sectors from mining to manufacturing, wholesale and retail. SLGJA was amalgamated with three of the industry's top trade associations: Sri Lanka Jewellery Manufacturing Exporters Association, Sri Lanka Lapidarists and Exporters Association and Sri Lanka Jewellers and Gem Merchants Federation.

In the 2003 Budget, the Government of Sri Lanka declared SLGJA as the Apex industry body and charged it with a leadership role to formulate industry-level strategies to increase productivity and competitiveness. Since then, the Association works closely with the government's National Gem & Jewellery Authority and the Sri Lanka Export Development Board to advocate national policy and give input for the industry's regulatory framework. Currently, SLGJA has over 350 members who together account for over 75 percent of the country's gem and jewellery exports.

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.