First Indo-Lanka textile agreement inked in Colombo

As the first ever textile agreement between India and Sri Lanka became a reality, both neighbours mulled joining to enter a coveted global textile foothold-China, the world’s largest textile market. “China’s textiles are gradually moving from production to consumption. Using our strengths together-Sri Lanka’s first class garment manufacturing infrastructure and India’s quality fabric outputs-let us jointly compete for China’s textile market” said a determined Ms Zohra Chaterji (Secretary of Indian Ministry of Textiles) on 09 September in Colombo.

 Ms Chaterji was addressing Anura Siriwardena (Secretary, Ministry of Industry and Commerce of Sri Lanka) on 09 September at Cinnamon Grand during her delegation’s official meeting with Sri Lanka’s delegation after the signing the first ever MoU between India and Sri Lanka on the same day at Galadari Hotel, Colombo earlier. During the successful Cinnamon Grand meeting, officials from both sides discussed in depth, of the modalities of the morning MoU and how to move forward and implement it in the coming months and agreed on the immediate next steps.

 The morning MoU signing event at Galadari was attended by, among others, Basil Rajapaksa (Economic Development Minister), High Commissioner of India in Sri Lanka (HE) Y.K.Sinha, Ashroff Omar (Chief Executive Officer of Brandix Lanka), M. Fowzie (Senior Minister) Ms Zohra Chaterji, PS Raghavan (Secretary, Ministry of External Affairs, India), Visvanath Agarwal (Chairman- Powerloom Development & Export Promotion Council of India-PDEXCIL), Anura Siriwardena (Secretary, Ministry of Industry and Commerce) and relevant officials and private sector reps from both countries. The Memorandum of Understanding on new textile cooperation effort is the latest development in the aftermath of Indian announcement in September 2012 that Sri Lanka can export eight million apparel pieces at zero duty to India.

A 2011 survey by “China National Garment Association (CNGA)” showed the cost of Chinese textile and garment companies on labor, raw material, energy and financing were “in the uptrend” and as such Chinese textile market shows promise for foreign imports. In its 2012 report, China Research and Intelligence Ltd estimated the Chinese textile market to be around $ 540 Bn while the combined annual exports of Chinese textiles and garments at $ 248 Mn. 40% of China’s annual industrial output comes from textiles.

 “The objective of this historic MoU being the expansion of the business and co-operation in the development of SME in Handloom, Power-loom and Textile sectors. The period of Memorandum of Understanding will remain in force for five years from the date of signing the MOU and it can be renewed thereafter.  The key persons in the resulting Joint Working Group (JWC) are the co-chairs –the Additional Secretary of the Ministry of Industry and Commerce of Sri Lanka and the Joint Secretary of the Ministry of Textiles of the Republic of India–as well as members who will collaborate on this MOU. We strongly believe in the involvement of the private sectors of both countries in taking this process forward” said Secretary Siriwardene, addressing the morning MoU signing event at Galadari Hotel. “We also observe that there appears to be much more unrealized potential for Sri Lankan textiles to serve the Indian textile markets and we are confident that this delegation will understand and support us to further enhance this direction. I would like to stress our strong appreciation towards Hon Anand Sharma, Indian Minister of Commerce and Industry who, during his visit to Sri Lanka in 2012 for his pioneering steps towards this bilateral textile MoU as well as for his extension of our textile export quota to India from three million to eight million pieces as a result of the  successful Discussions he had with HE the President Mahinda Rajapaksa, Ministers Basil Rajapaksa and Rishad Bathiudeen. We thank especially the Treasury Secretary Dr PB Jayasundara for his untiring efforts in making this MoU a reality” Secretary Siriwardena added.  

 According to the Department of Commerce, total Indo-Lanka trade in 2012 stood at $ 4.086 Bn. During January – June of 2013, exports from Sri Lanka to India stood at $ 279.17 Mn while imports from India at $ 1465.65 Mn, showing a declining trend in imports from India. India’s appetite for Sri Lanka apparels and textiles too has grown steadily. Last year, India was the 8th buyer country of Sri Lanka textiles and garments with $ 64 Million which was a three-fold increase from 2008. Also last year India became the 10th buyer country of world famous Sri Lanka apparels purchasing $ 39 Million of apparels, which was a strong 44% increase from 2011. I am sure that you may already be aware that Sri Lanka Apparel has become one of the world’s leading proponents of ‘Ethical Business and Manufacturing Practices’ for the Global Fashion and Apparel Sourcing Business. In 2012 India also ranked the second largest buyer of Sri Lanka’s woven fabrics category with $ 20 million purchases which was a 42% growth from 2008.

 Ms Zohra, addressing the MoU signing event at Galadari Hotel, said: “Textiles is an area which has immense promise for the mutual benefit of both our countries. Sri Lanka is India’s largest trade partner in South Asia. India is Sri Lanka’s biggest trade partner. Seeing that 45% of Sri Lanka’s exports account for garments, it is opportune for both countries to join hands to capture a larger global market share. The market opportunity is here and now it is for us to respond fast. This would be going. Sri Lanka offers fast delivery, faster transit times, low transit costs, we are able to supply flexible quantities of your yarn requirements. There are opportunities for joint investments both ways. The current MoU approved by Sri Lankan side is limited to SMEs of handloom, power-loom and textiles only but the Indian government is willing for a larger engagement -all sectors of Sri Lanka’s value chain in the next stages-including handicrafts. For now we are happy to go along with your strategy of incremental approach in textile cooperation process, we keep the doors open for expanding this textile cooperation further.”

Sri Lanka excels at 82nd Izmir International Fair in Turkey……

 

Sri Lanka, the first ever country in Asia has been offered the “Partner Country” status at the 82nd Izmir International Fair, the oldest Trade Exhibition in Turkey.  Sri Lanka’s participation promoted Sri Lanka as a reliable destination for trade investment & tourism and showcased the best that the island paradise has to offer,   under the theme “Sri Lanka -Wonder of Asia”.  This theme is in line with the Mahinda Chinthanaya,  vision of the President of Sri Lanka who has given the leadership to initiate a grand scheme of progress and development in the country.

Sri Lanka’s Partner Country participation organized by the Sri Lanka Export Development Board (EDB), which aims to drive the national economy through export growth. The main objectives of the event were to promote and re-position Sri Lanka’s trade, investment and tourism and instill confidence in the country’s high-quality products and services among international buyers.

Sri Lanka’s participation showcased a unique combination of an exhibition, B2B meetings and corporate events. Every endeavor was made to make it a valuable business experience for all stakeholders.
The Sri Lanka Export Development Board acts as a catalyst to achieve Sri Lanka’s export target of US Dollars 15 billion by 2015.  It is expected that Sri Lanka’s exports will receive a boost with the Sri Lanka’s participation at the event.

Parallel to the exhibition, there were meetings with the ambassador to Gambia, ministerial delegation of Libya, trade delegation of Indonesia, Governors of Izmir & Sinop City of Turkey and B2B meetings with eminent business leaders in Turkey from trade, investment & tourism to network with the trade delegation of Sri Lanka.

Sri Lanka’s participation showcased a wide array of high-quality export products.  It is expected to follow up with the inquiries received and negotiate for export orders with the buyers from strategic markets around the world, who had networking with the Sri Lanka trade delegation.

Sri Lankan cultural performances and the stall which projected Sri Lanka’s culture and the Art at the event attracted many visitors to the Sri Lanka Partner Country Pavilion, inquiring to facilitate travel to Sri Lanka.
Hon. Rishad Bathuideen, Minister of Industry & Commerce, made a speech at the ceremonial opening held on 29th August 2013 and Hon. Fizar Mustaffa, Deputy Minister of Tourism Development also accompanied Hon. Minister of Industry & Commerce. The reception hosted by the Sri Lanka Embassy in Turkey was attended by many ambassadors to the countries and other eminent representatives from trade and investment of participating countries.

Sri Lanka’s Partner Country participation was a very successful one.  It will be a window of opportunity for foreign buyers hoping to benefit from the Sri Lanka’s lucrative and rapidly growing export market.
The Sri Lanka Export Development Board is dedicated to creating export growth and competitiveness through global awareness of what Sri Lanka has to offer promoting Sri Lanka – Wonder of Asia at international trade events.

Radical new boat ‘will significantly boost Sri Lanka’s tuna exports’

Sunday Times - 08/09/2013

By Nick Hart

Pic shows a ‘test-bed’ vessel on which the tuna boat is based under construction at the Viksund yard

Negombo – A radical new, locally built high-speed catamaran fishing boat is poised to significantly boost the number of top-price tuna available for export from Sri Lanka to markets in Japan, China and the Middle East.

It will also help ensure tuna sustainability in Sri Lankan waters by reducing by up 70 per cent the number of fish needed to be caught in order to ensure maximum profitability.

Sri Lanka’s Ministry of Fisheries and Aquatic Resources Development has expressed keen interest in the new vessel, which will help put the country at the forefront of next-generation fishing-boat development.

It is hoped that a prototype, currently on the drawing-board at the Viksund boatyard on the Negombo lagoon, will be ready for sea trials later this year.

The new boat combines a hull design based on G3 offshore racing powerboats with high-tech refrigerated fish holds that eliminate spoilage and get fresh tuna back to port at speeds of up to 40 knots.

The ministry has said it will allow the new venture to be based at the recently completed state-of-the-art fishing harbour between Negombo lagoon and Colombo, where land will be made available for a factory to build the new boat.

It has also brokered agreement from the Sri Lanka Navy for Viksund, a Norway headquartered company, to use powerful 200-plus horsepower outboard engines, which are currently banned for use on civilian vessels.

Deputy Fisheries Minister Sarath Kumara Gunaratne has pledged to attend the launch of the prototype, which he hopes will spearhead the kind of entrepreneurial innovation that is essential to the long-term survival of Sri Lanka’s fishing industry.He says: “Fish and seafood represent a significant proportion of our GDP and export markets, and we welcome any development that will help our fishing industry stay ahead of the game.” At present, as much as 80 per cent of tuna landed in Sri Lanka is ‘spoiled’ because current vessels lack adequate refrigeration and handling technology to maintain the fish in Grade 1 condition for the long periods the boats are forced to remain at sea.

Grade 1 sushi bluefin tuna currently fetches up to US$1,000 per kilo wholesale in Tokyo. Prices for yellowfin tuna, which is more commonly found in Sri Lankan waters, range from $500 to $700.

Prices are dramatically lower for Grades 2 and 3 tuna, which are considered spoiled and thus not fit for sushi – and with the latter often contemptuously dismissed as ‘pet-food’ by tuna marketers.

Boatyard owner Yostein Viksund says he is looking forward to helping Sri Lanka develop its fishing fleet to meet the challenges it must overcome if it is to thrive over the next three to five years.

He says: “Stocks of tuna and other staple species are being depleted at alarming rates across the Indian Ocean. Our new boat will mean higher profits from fewer fish, which will greatly benefit tuna-stock sustainability as well as the Sri Lankan economy.”

Remenzie Fernando, who has extensive experience providing top-quality sushi tuna to Japanese markets and is now a livestock and fisheries consultant, is optimistic that with the right planning and logistical support the new boat will more than prove its worth in its first season of operation.

He says: “We have a state-of-the-art fishing port on one side of Negombo lagoon and an international airport with daily direct flights to Tokyo and the Middle East on the other. All we need are the right fish in the right condition at the right time, and that’s what this new boat will give us. It will be a classic win-win situation all round.”

(Nick Hart is a British travel and business writer based

in Negombo)

Dutch biz in town

Asian Tribune - 06/09/2013

Buddhi Athauda (Ambassador of Sri Lanka to the Netherlands-far right) and Dr Yousuf Maraikkar (Executive Director-EDB) engage the visiting members of the Dutch biz delegation at Hotel Mt Lavinia on 04 September.

Dutch biz are bullish on Sri Lanka’s emergent prospects. “Sri Lanka’s historic links with the Netherlands have entered a new era. This strong business and investment delegation is the latest sign” said an upbeat Buddhi Athauda (Ambassador of Sri Lanka to the Netherlands) on 04 September in Mt. Lavinia.

Ambassador Athauda was addressing the inaugural event of the visiting Netherlands business and trade delegation to Sri Lanka on 04 September held at Mt Lavinia Hotel, Mt Lavinia. The delegation, which is on a week-long tour in Sri Lanka, and which arrived on same day (04 September) in Colombo, consisted of reps from such leading Dutch firms as JIMPP Media, Abos, Defteq International BV, Beursgenoten, Fleurons & Prins, Velema Holdings, and Zonel Energy Systems.

EDB facilitated presentations from various Lankan private sector firms-including Ceylon Tea, and Tourism- were made to the visiting delegation on 04 September at the Mt. Lavinia Hotel, followed by a successful B2B session between Dutch and Lankan biz that continued throughout the afternoon. Jimpp Media BV, a business programme producer is also part of the delegation. Ron Abdoelhafiezkhan, a well-known Dutch talk show host and a TV producer as well as JIMPP’s leading producer Ms Juliette Iperen with her TV crew are also in the delegation. The JIMPP TV crew is scheduled to start shooting for two half hour segments on Sri Lanka’s new developments, to be televised in Netherlands.

According to the BoI, currently 30 Netherland investment projects are in operation in Sri Lanka to a total investment value of $ 437 Mn. These projects have been on-going from way back in 1978 (to to-date). Among the well-known Dutch brands operating in Sri Lanka are Holcim (cement) and Northwest Fisheries.
According to the Department of Commerce of Sri Lanka, Sri Lanka’s total trade with the Netherlands has fluctuated during the last 14 years but balance of trade has continuously in favour of Sri Lanka recording the highest value of US $ 303.6 million in 2010. In 2012, the total bilateral trade between the two countries stood at $ 237.5 Mn. Tobacco, tea, fish products, solid rubber tyres, coconut products were Sri Lanka’s leading exports to Netherlands which totalled $ 158.6 Mn in 2012 while the country imported chocolates, orthopaedic appliances, ethyl alcohol, medicaments, tubes, pipes and hoses, and fittings from Netherlands last year.

“Netherlans famous logistics, agro sector and financials offer strong promise for Sri Lankan businesses in such sectors, looking to partner with Dutch biz” said (HE) Athauda. “Sri Lanka can focus on such well known sectors to synergise with Netherlands biz” he added.

“Sri Lanka is very interesting for us” said Alexander OP van den Bos, Director of Abos Ultimate Vending, the high-end coffee brand in the Netherlands. “Your economy is growing very fast and offers good prospects to the global investors like us. We are looking for joint ventures with matching partner firms from Sri Lanka” Bos added. Bos’ Faityrade and ATZ certified ‘Café Primero’ brand of high end coffee and coffee processing machineries trade grossed $ 53 Mn turnover in 2012.


“Diplomatic relations between Netherlands and Sri Lanka go back to more than 60 years” said Dr Yousuf Maraikkar (Executive Director-EDB), addressing the event, and added: “The Dutch influence still lingers in many areas our national life. Their great architecture vividly recalls us their presence in Sri Lanka. In 2012, the total bilateral trade between the two countries stood at $ 237.5 Mn. Sri Lanka is hosting the CHOGM and the Commonwealth Business Forum in November and parallel to this is the large scale exhibition by the EDB and I invite you to actively take part in it.”

Strengthening ties at EDB

Daily Mirror - 02/09/2013

The Sri Lanka Export Development Board (EDB) celebrated its 34th anniversary recently. As a part of its anniversary celebrations, the formation of an Ex-EDB Employees society titled ‘Ex-EDB Employees Sansadaya’ was proposed, to strengthen the ties between the present and past employees of the EDB. The inaugural meeting and the get-together of the ‘Sansadaya’ was held on 23 August at the Cey-Nor Seafood Restaurant, Colombo, with the participation of present and past employees of EDB

Israeli Trade delegation upbeat on investment prospects in Sri Lanka

Asian Tribune - 31/08/2013

A high end Israeli Trade delegation consisting of approx. 25 delegates from diverse sectors such as agriculture, dairy, the high tech industry, defence, insurance and water management sectors is currently visiting Sri Lanka in order to explore potential scope for collaboration between the two countries. The trade delegation which arrived on 26th August is led by Ambassador Sarath Wijesinghe, Sri Lanka’s Ambassador to Israel.

The objective of organizing the visit by the Sri Lanka Embassy in Israel with the assistance of the Export Development Board, the Chambers of Commerce and the Israel –Asia Chamber of Commerce in Israel was to highlight Sri Lanka’s comparative advantages as well as the variety of investment incentives available in the priority sectors of the Sri Lankan economy. This visit is also timely since there has been considerable growth in bilateral economic relations between Sri Lanka and Israel with trade doubling to US $ 158.35 million last year.

H.E. the Ambassador Sarath Wijesinghe addressing the distinguished gathering at the inauguration of the event at the Grand Oriental Hotel stated that Sri Lanka is a stepping stone to the sub-Continent for Israeli investors and invited the Israeli entrepreneurs to make use of the emerging status of Sri Lanka as a hub in the region. Mr. Ajith Nivard Cabraal, Governor of the Central Bank who was the Keynote Speaker at the inauguration commented on the strength of Sri Lanka’s macro fundamentals and stated that the time is right to invest in Sri Lanka. Later in the day many leading Sri Lankan businessmen availed themselves of the business networking facilities with the Israeli trade delegates which were offered to them after the inaugural event concluded.

The delegation is expected to call on Minister of Irrigation & Water Resources Management Hon. Nimal Siripala de Silva, Minister of Agriculture Hon. Mahinda Yapa Abeywardena, Minister of Economic Development Hon. Basil Rajapaksa and Mr. Gotabhaya Rajapaksa, Secretary of the Ministry of Defence & Urban Development will visit the Board of Investment and other Government Institutions later on in their visit.

Negotiations on bilateral cooperation of Belarus and Sri Lanka held at business forum

The delegation of Sri Lanka is interested in export of certain Belarusian goods such as sugar, tires and oil products. The heads of the states agreed on setting up joint ventures.
Joel Selvanayagam, the chair of the group of companies (Sri Lanka): "We have enormous potential and technologies. By uniting them we can advance our economies".

The visiting card of Sri Lanka is tea and it is going to set up logistics centers on the territory of the Customs Union. Numerous agreements were signed during the business forum including the Memorandum on cooperation between the National Center of Marketing and the Council of Export Development of Sri Lanka.