China seeks minerals, logistics services from Sri Lanka

Lanka Business Online - 28/09/2013

Chinese firms are planning to buy activated carbon and rubber from Sri Lanka following the visit of a trade delegation and others are in talks over minerals and logistics services, the island's trade ministry said.

"We have identified one Lankan partner firm for trading in activated carbon," An Qi Fu, international business manager of CITIC International, a Chinese state firm, was quoted as saying in a statement.
"We will start buying through the Lankan partner firm as soon as possible once the agreements finalised."

The Chinese trade delegation led by Jia Guoyong, the vice director general of the Chinese Trade Development Bureau (TDB), had 23 companies in glass manufacture, mining, minerals, agriculture, polymer, petroleum bi-products, chemicals, and real estate.

The trade mission met around 100 companies at a meeting arranged by Sri Lanka's Export Development Board.

There was a strong demand from many Lankan firms to partner with us," Wang Zhi Jie, assistant manager of strategic planning at Sinochem group was quoted as saying.

"We have a positive negotiation outcome with one Lankan rubber supplier for Sinochem’s rubber plant in China. We are also looking for both import as well as export trading."

China is among Sri Lanka's top trading partners with imports of 2.4 billion US dollars in 2012 and exports of 108 million US dollars.

Chinese good are usually costs less, and help increase the living standards of lower income Sri Lankans particularly as they try to build a roof over their heads, battling the high building materials prices of protected domestic producers.

But analysts say in order to beat protectionist taxes on some imports, lower quality goods may be imported at times.

Anhui Light Industries International Co., Ltd. (ALIC), Zibo Top Arts, Zibo Honghan Trading, Shandong Hanbang Household Glassware, Zibo Unishine, XinHe Commerce and trade Refco Group, Hebel Kaifa Glassware, AVIC International Holdings, Chinatex and China National Township were also in the delegation.

Han Ven Han, manager operations at Sinosteel Metals was quoted as saying that they were in talks with seven Sri Lankan firms.

"We are looking for mineral sourcing from Sri Lanka as well as partnering in logistics and services," he said.
"Within logistics, we are looking specifically for transport, warehousing and in the general value chain of logistics. We will also look into the possibility of investing in Sri Lanka on logistics."

Gua Honghai from China Minmetals Non-Ferrous Metals Co Ltd said they were looking for copper, zinc and aluminium suppliers and found out that there were none in Sri Lanka but were interested in the location as a logistics base.

Sri Lanka has ports and airports with quick connections to the Indian subcontinent and other areas.

India has become a large importer of Chinese goods with bi-lateral trade at over 66 billion rupees last year.

China has financed a second international airport and an industrial port in Hambantota in the South.

A Chinese state-firm has also built a container terminal in Colombo.

Saudi buyers, sellers invited to trade exhibition in Sri Lanka

Arab News - 27/09/2013

The Sri Lankan Embassy has invited buyers and sellers to participate in an exhibition to be held concurrently with the Commonwealth Heads of Government Meeting (CHOGM) 2013, scheduled to be held in Colombo from Nov. 13.

Anil Sirimanne, commercial counselor at the Sri Lankan Embassy, told Arab News that the event, which will discuss Sri Lanka’s trade, tourism and investment, will also coincide with the Commonwealth Business Forum (CBF), which will also be held in Colombo during the same period.

The Commonwealth is a voluntary association of 54 independent countries and the CHOGM is held every two years to enable leaders of Commonwealth countries to come together to discuss global and Commonwealth-related issues and to decide on collective policies and initiatives.

Running parallel to the CHOGM, “Reflection of Sri Lanka,” an international exhibition on trade, tourism and investment, will be held from Nov. 13 to 17 in Colombo, in which numerous private and public sector agencies will be participating.

More than 300 leading exporters of various sectors from Sri Lanka and foreign machinery and technology suppliers will showcase their products and services.

It will be held at the Folk Art Center (Janakala Kendraya) in Battaramulla, a suburb in the capital, Colombo.
“The Embassy of Sri Lanka in Riyadh would like to invite you to participate in this exhibition to develop economic relations with Sri Lankan partners. You can register as a buyer or an exhibitor at the exhibition,” Sirimanne said, adding that attractive travel packages will be offered to participants by the sponsors of the event.

“Sri Lanka is privileged to hold this summit this year. This is the first time an Asian country hosts such an event in 24 years. This prestigious event presents Sri Lanka with a valuable opportunity to promote and reposition Sri Lanka as a strategically important economic center of the world.”

The exhibitors are expected to maintain the highest quality and international standards in displaying their products.

The diplomat said the trade exhibition will be a great opportunity for leading exporters and potential exporters to present their capabilities to the heads of Commonwealth States, high-powered delegations, business leaders and other foreign buyers, which will pave the way to further pursue their business in the global market.

The exposition on trade, tourism and investment will be organized by the Ministry of Economic Development, the Ministry of Industry and Commerce and Sri Lanka Tourism and Board of Investment (BOI) in collaboration with the Sri Lanka Export Development Board (EDB) and in association with other government agencies to showcase Sri Lanka’s export portfolio at its best.

The exposition includes product displays, networking sessions, seminars and industry visits. Foreign exhibitors will present state-of-the-art equipment and technology.

Promotional packages include a 25-percent discount on airfare to and from Colombo, gratis visa, internal transport, including airport pick up free of charge and concessions for hotel charges.

Ten Prominent Business groups to represent Sri Lanka at Pakistan EXPO 2013

Asian Tribune - 26/09/2013

High Commissioner of Pakistan Qasim Qureshi with the participants of expo 2013

The High Commissioner of Pakistan in Sri Lanka Maj Gen (R) Qasim Qureshi hosted the Sri Lankan businessmen participating in Pakistan EXPO 2013 along with the officials of Export Development Board Sri Lanka, today at the High Commission of Pakistan prior to their departure for Karachi.

Ten companies from Sri Lankan representing various sectors such as tea, herbal cosmetics, commercial paints, bicycles, fruits & vegetables, textiles and pharmaceuticals sectors will attend the largest EXPO of Pakistan, from 26-29 September, 2013.

Expo Pakistan is the biggest trade fair in Pakistan, showcasing the largest collection of Pakistan's export merchandise and services. Foreign exhibitors, from neighbouring countries, also use this platform to launch their products. Held annually in the month of September, the four day Expo Pakistan has become the primary sourcing point for a large number of businesses worldwide, giving them a head start on the buying and ordering for coming seasons.

The Export Development Board of Sri Lanka has booked a separate Pavilion at the EXPO Center Karachi to showcase the Sri Lankan products.

During their stay in Pakistan, the Sri Lankan delegation will interact with the representatives of various business chambers and hold B2B meetings with businessmen of Pakistan.

The High Commission of Pakistan in Sri Lanka had formally launched The EXPO Pakistan 2013- Opportunities Unlimited on 24 June, 2013 in Colombo under the patronage of Minister for Industries and Commerce Sri Lanka, Rishad Bathiuddin.

The Expo 2012 generated over US$ 518 Million business with the participation of over 600 buyers from over 52 Countries.

Sri Lanka to hold exposition on Trade, Tourism & Investment in parallel to CHOGM

Colombo Page - 24/09/2013

 In order to maximize the opportunity presented by the upcoming Commonwealth Heads of Government Meeting (CHOGM) in November, Sri Lanka is holding an exposition on Trade, Tourism & Investment in parallel to the event.

"Reflection of Sri Lanka" will be held at the Folk Art Center (Janakala Kendraya) in Battaramulla, a suburb of capital Colombo, from 13th to 17th November 2013.

The expo is organized by the Ministry of Economic Development, Ministry of Industry and Commerce, Sri Lanka Tourism, and Board of Investment (BOI) in collaboration with Sri Lanka Export Development Board (EDB) and in association with other government agencies.

The five-day event will showcase Sri Lanka's export portfolio at its best, the organizers say.

The exposition includes product displays, networking sessions, seminars and industry visits. And the foreign exhibitors will present their state-of-the-art equipment and technology.

The exhibition will consist of three parts to promote trade, tourism and investment. The trade section of the exhibition will comprise approximately 300 stalls to display the exhibitors' products and capabilities.

The exhibitors are expected to maintain the highest quality and international standards in displaying their products.

According to the organizers, the trade exhibition will be a great opportunity for all the leading exporters and potential exporters to present their capabilities to Heads of Commonwealth States, high powered delegations, business leaders and other foreign buyers which will pave the way to further pursue their business in the global market.

The CHOGM 2013 will witness the presence of Heads of State of 54 commonwealth countries who will be accompanied by high powered delegations and also around 500 business leaders who will attend the Commonwealth Business Forum, held in Colombo parallel to the CHOGM from 13th - 17th November 2013.

In addition, the Ministry of External Affairs and the Department of Commerce is making arrangements to invite foreign buyers from important markets to visit the Trade Exhibition.

Speech of Mr. Bandula Egodage, the Chairman & Chief Executive of Sri Lanka Export Development Board, at the Exporters Association of Sri Lanka - AGM

Mr. Bandula Egodage, the Chairman & Chief Executive of Sri Lanka Export Development Board

I thank the Exporters' Association of Sri Lanka for inviting me to the AGM and giving me the opportunity to address this distinguished gathering of members.

The Exporters Association which represents about 80% of exporters in the country is the foremost body for exporters in Sri Lanka. We highly appreciate the contribution of Association towards the export development effort of the country.

The Government's vision as envisaged in the 'Mahinda Chintana' is to transform Sri Lanka into a strategically important economic centre of the world. This would then lead to socio economic development of the country. The export sector which contributes 17% to the GDP of the country, clearly plays an important role in achieving this objective.

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.

We strongly believe that the private/public partnership is very essential for the growth and the development of the sector. Private public partnership is not only essential for formulating successful export development strategies but also in implementing the same.

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.

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 we have established 26 new Advisory Committees comprising 400 members. These members represent both the private and public sector. This will enable us to work together to identify the problems confronted by the export sector and find suitable solutions to such problems. We have already scheduled the inaugural meetings of these committees and we expect the full participation of all members.

The export sector of Sri Lanka after showing strong growth in 2010 and 2011 experienced a set back in 2012 which continues to prevail even in this year. The set back 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 &, emerging economies. Also there are supply side constraints in the domestic front.

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

Despite these challenges I am happy to state that according to provisional Customs data, our export earnings have recorded a commendable increase in the Month of June this year. Export to our key markets USA and EU, specially to USA, have also shown a satisfactory increase in June 2013.

The problems in our key markets suggests 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.

I am confident that the Exporters Association could make a very positive contribution to these efforts using their close relationship with relevant stakeholders nationally and internationally. Utilizing these strong links the Exporters Association could facilitate to create healthy business relationships to enhance our exports.

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.

The government has maintained inflation rate at a single digit level which is 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.

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. We intend to implement these programs for the benefit of the export sector.

I would request you to have a close rapport with the EDB to discuss any issues or constraints which require our attention.

Finally, I wish to extend my best wishes for the successful conduct of the AGM of the Exporters Association.

Thank you.

SL’s fruit and vegetable exports tops US$ 32.5 m

Daily News - 20/09/2013
By - Fizel Jabir

Processors and exporters in combination have achieved as at today a 20 % increase in export revenue compared to last year, said Bandula Egodage, Chairman Export Development Board addressing the Lanka Fruit and vegetable Producers, Processors and Exporters Association's 32nd AGM on Wednesday.

He said the industry has earned US$ 32.5 million export earnings in 2012 which was very significant because members of the association were engaged in agriculture. He said the members of the association were playing a vital role in terms of rural development in Sri Lanka and was engaged in a huge CSR campaign which was more vital than figures. He said value addition was vital to overcome rising input costs.

Lanka Fruit and vegetable Producers, Processors and Exporters Association's 32nd AGM was held on Wednesday at Hilton Colombo Residence. The Chief Guest of the occasion was Anura Siriwardena. Bandula Egodage, Chairman Sri Lanka Export Development Board was the Guest of Honour.

Speaking at the occasion , Annes Junaid, Chairman Lanka Fruit and vegetable Producers, Processors and Exporters Association said that during the 32 years, the association has contributed immensely to the rural economy.

He said although the quantity was small the impact the association has on the rural economy of Sri Lanka was immense and great. Junaid said their main products were fruits and vegetables and this were all coming from the rural economy of Sri Lanka.

He said they sourced fruits and vegetables from all parts of the country.

“While catering, to uplift of the rural economy we also earn valuable foreign exchange for which the local value addition was very high. In terms of value addition our industry could not be compared to other industries because our products are from the rural economy”, he said. In terms of export increase, he said they have a target for 2015 and 2020 and they were working hard toward achieving it.

He said however there were some impending issues which needed to be addressed by all concerned to drive the industry forward. Junaid said for this production should be increased and state intervention was required.

In this regard he said they recognize and respect the Divineguma Programme because it has brought about some sort of support to their members and the industry by stabilizing prices by supplying what is required for the local market.

He said if Thailand and Malaysia could export their fruits and vegetables to Europe and the USA, there was no reason why Sri Lanka could not do it.

Partnering Lanka shines bright at Turkey’s Izmir, snaps-up immediate orders

Asian Tribune - 18/09/2013

Sri Lanka, honoured as the first ever Asian Partner country at the Izmir Int’l Fair series in Turkey, has successfully clinched several trade and business deals at this global event, while also pushing its historic trade ties with the easternmost NATO power to new levels.

“We consider Turkey as one of the most important Trade Partners with high potentials for trade growth, and the present bilateral trade at $ 190 Mn is a credible starting point towards bigger trade, which in turn, has shown an increasing trend over last five years” said Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) addressing the huge audience at the inaugural session of 2013 Izmir International Fair (the 82nd international multi-product exhibition series) on 29 August in Izmir, Turkey.

Sri Lanka was the partner country at the 82nd show -and also to be honoured as the first ever Partner Country from Asia at this series- held in Izmir, which in turn, is a candidate city for the global EXPO 2020 event.

Turkey has honoured Sri Lanka by making it a partner country at the 82nd Izmir Int’l show held from 29 August to 02 September in Izmir. Izmir series is one of the largest-and wide ranging- industry fairs in the northern hemisphere encompassing many macro industries and their sub-sectors, which included, among others, food products & technology, automotives, furniture, decoration, household, appliances, white goods, passenger cars, trade vehicles, bicycle, motorcycles, construction and building materials, construction machinery, agricultural machinery, farming tools, hvac and sub-industries, electric, electronics, computer, it, telecommunication, general machineries, chemical and petrochemical products and related technologies.

No less than 14 Lankan exporters and 7 stakeholder institutions were travelling with Minister Bathiudeen to Izmir Int’l Fair as part of the 45 strong Lankan delegation. A minimum of 130 buyer leads were generated for Sri Lanka, according to the EDB. Immediate negotiations for Pure Ceylon Tea orders exceeding $65000 totals, materialised during the Izmir fair, along with other shipment-orders for coconut products, gem and jewellery, herbal teas, and ceramics. Among investment inquiries received were, spare parts, bicycle tyres, motor cycle assembly and infrastructure development projects. 46 B2B meetings, facilitated by EDB, were successfully concluded. Sri Lankan delegation, also facilitated by the EDB, concluded successful biz-meets with the official delegations of Indonesia, Namibia, Lybia, Izmir Chamber of Commerce and Agean Chamber of Industry and Turkey’s Small and Medium Industry Development Organization, KOSGEB.

“On behalf of HE the President of Sri Lanka Mahinda Rajapaksa and the people of Sri Lanka, I extend my sincere thanks to the Government of Turkey in giving this opportunity to Sri Lanka to act as the Partner   Country in this international event, which is a great honour for us” said Minister Bathiudeen and added: “Sri Lanka’s major exports to Turkey represent Ceylon Tea which is world renowned for its colour, flavor and aroma, and also Garments, Rubber products, Coir Based products including activated carbon. We import Woven Fabric, machinery and other equipments from Turkey. Sri Lanka can offer many other products to the world as well, with her rich natural resources. To name a few, natural gems including world’s best Blue Sapphires, Spices with inherent qualities including world famous Ceylon Cinnamon and mineral resources.

There are ample opportunities to set up value added industries in various sectors, targeting local & international trade. For Sri Lanka, Turkey could be considered as one of the gateways to the EU region and the same way, Turkey could consider Sri Lanka as one of the gateways to the Asia, as Sri Lanka’s strategic location which is geo-politically important, and the opportunities made available under the two Free Trade Agreements with India and Pakistan and many more bilateral arrangements that are under negotiation. Against this background, I consider that Sri Lanka’s participation at the Izmir fair is very timely and definitely plays an important role to enhance trade acting as a catalyst for the bilateral initiatives to proceed with the joint economic partnership efforts on accelerated mode and thereby achieve sustainable economic development for both economies. I have been given to understand that this international fair provides a platform to have interaction among the exhibitors who have come from almost 35 destinations which will create business interactions to promote international trade under one roof” Minister Bathiudeen said.