Japanese apparel market craving for more Lankan made supplies

Daily Mirror - 01/10/2013

Apparel exports must be expanded to cater to the growing demand for Sri Lankan made products in the Japanese market, according to Japan’s House of Councillors Member Yamatani Eriko.

“Sri Lankan apparels are of high quality but unfortunately, the supply of Sri Lankan apparels to the demand of the Japanese market is not sufficient at the moment. Therefore, we request steps be taken to expand exports of Sri Lankan apparels to Japan.

Bilateral trade between Sri Lanka and Japan has a very long history and trade is one of the most important aspects of our bilateral relations. Ceylon tea and other Sri Lankan products such as apparels and ceramics are already popular in Japan,” Eriko stated.

Leading a six-member delegation from the upper House of Japan’s legislature, the National Diet, Eriko made the comments during a meeting with Industry and Commerce Minister Rishad Bathiudeen.

The Japanese apparel market is currently estimated to be as large as US $ 122 billion. Total exports of Sri Lankan apparels reached US $ 2.77 billion in 2012. However, Japan is only the 14th largest buyer of Sri Lankan apparels, accounting for less than 1 percent of export revenues.

Responding to Eriko’s comments, Bathiudeen expressed confidence in the potential for expansion of Sri Lankan apparel exports to Japan, while also welcoming Japanese investment into the Sri Lankan apparel sector.

Bathiudeen added that the potential for exploration of investment opportunities in Sri Lanka by Japanese businesses was particularly suitable in the backdrop of Sri Lanka hosting the Commonwealth Heads of Government Meeting (CHOGAM) in November this year.

Also participating in the discussions were Japanese Ambassador to Sri Lanka Nobuhito Hobo, Export Development Board Director General Sujata Weerakoone, Industry and Commerce Ministry Advisor Himali Jinadasa, Acting Director General of Commerce R.D.S. Kumararatne and Deputy Director of Commerce D.W. Jinadasa.

Total trade between Sri Lankan and Japan crossed US $ 770.11 million in 2012 as compared with US $ 493 million in 2002. The trade balance is skewed in favour of Japan largely due to motor vehicle imports.

Govt: Lanka companies bullish at EDB’s first ever China-Lanka direct B2B

The Island - 29/09/2013

"Eager Sri Lankan biz has experienced a sudden boost and witnessed new doors of opportunities on 26 September with a surge of inquiries from the powerful Chinese businesses now scouring Sri Lanka," the Ministry of Industry and Commerce said in a statement.

On 26 September, one hundred (100) Lankan firms of small, medium and large scales met reps from 23 powerful Chinese firms that arrived in Sri Lanka on 25 September as part of the Chinese Trade Promotion delegation to Colombo.

This is the largest Chinese private sector delegation to visit Sri Lanka. The Chinese delegation is led by Jia Guoyong, the Vice Director General of Chinese Trade Development Bureau (TDB). This is one of the strongest such Chinese delegations to arrive in recent Lankan trade history. The 36 member strong Chinese delegation consists of unprecedented Chinese private sector representation with 23 companies taking part in glass manufacture, mining/minerals, agriculture, polymer/petroleum bi-products, chemicals, and real estate. Three of the firms are in Fortune 500 list- Sinochem Group ($49.5 Bn revenue), China Minmetals ($ 37.5Bn) and Sinosteel ($27.2Bn). Among other visiting firms are 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 Holding, CITIC International, Chinatex, China National Township, Sinosteel Raw Materials, Sinochem Guangdong, and Sinochem Plastics.

During the four hour long Sri Lanka-China Business Meeting –the B2B matchmaking sessions facilitated by EDB- held at Cinnamon Lake Hotel on 26 September, the 23 Chinese firms met 100 Lankan firms for potential partnership on diverse sectors of interest.

Among the potential partnership avenues discussed were overall trading (both import/export), importing from Sri Lanka, exporting to Sri Lanka and business joint ventures.

EDB, on 27 September, said that the majority of Sri Lankan businesses that took part in the EDB facilitated B2B session, reporting ‘it was a very effective session’ with many potential partnership leads being generated for them.

Among the business sectors at play at the B2B session were chemicals, petroleum and fuel refining, activated carbon, metals (including non-ferrous), agriculture, financials, rubber and rubber products, plastics, activated carbon, glass and real estate.

On the eve of 26 September after the B2B sessions were over, many reps from the Chinese business side confirmed successes with eager Lankan firms, but insisted that it is premature for them to reveal the identities or Lankan partnership details since ‘they have to process paperwork back home on nature of partnerships and determine exact Lankan (product) HS codes first.’

"We had very good, very successful meetings today. We also identified one Lankan partner firm for trading in Activated Carbon" said Anqi Fu, the Business Manager of CITIC International (Fortune 500 ‘CITIC Group’ s annual revenue at $ 43 Bn, subsidy CITIC International annual revenue at $ 500 Mn). "The next step is to identify the exact product categories. We will start buying through the Lankan partner firm as soon as possible once the agreements finalised. We are also thinking of increasing purchase volumes in future but in step by step process" Qi Fu added.

"We had discussions with no less than 45 Lankan companies today" said a somewhat exhausted Ms Wang Zhi Jie (Assistant Manager-Strategic Planning) of Beijing’s SINOCHEM Group (Fortune 500 firm, with $49.5 Bn revenue). "There was a strong demand from many Lankan firms to partner with us. We are focusing on chemical products and fuel refining. We listed several Lankan firms for partnership possibilities demanding refining services from us. We have an annual refining capacity of 1200 tonnes. We also have positive negotiation outcome for partnership with one Lankan rubber supplier for SINOCHEM’s rubber plant in China. We are ready to start buying as soon as Sri Lankan firm’s quotation is approved by our SINOCHEM offices. We are also looking for both import as well as export trading" added Ms Jie.

Han Ven Han (Manager Operations -Beijing’s SINOSTEEL Metals) said: "We had many rounds of discussions with seven Lankan firms. And our cooperation prospects are looking good. We are looking for mineral sourcing from Sri Lanka as well as partnering in logistics and services. Within logistics, we are looking specifically for transport, warehousing and in the general value chain of logistics. We are still at fact finding stage and in discussion with the seven companies and we will make our decision back home based on what we learn here. We will also look into the possibility of investing in Sri Lanka on logistics. Sri Lanka’s geographic and marine location is very strategic for logistics, which is the reason we are interested. We also want to source metals from Sri Lanka."

Gua Honghai [Administrative Officer of China Minmetals Non-Ferrous Metals Co Ltd, one of 800 subsidy firms of Fortune 500 ranked China Minmetals which has $ 37.5Bn revenue)], is keenly scouring for non-ferrous metal supplies from Sri Lanka-in large volumes. "We are looking to buy non-ferrous metals in large quantities. We are in need of 100,000 tonnes of copper, 100,000 tonnes of zinc and 400,000 tonnes of aluminium annually" said Honghai, and revealed: "But today, I could not locate any Sri Lankan suppliers who can give me these volumes even after speaking to ten companies. We are realising that Sri Lanka has no non-ferrous resources that we can make use of. But that is not the only option we have for Sri Lanka-there are still other avenues of business for us here, specially in logistics which we are now looking at. I also think Sri Lanka should learn from Singapore as to how to use your very distinct, strategic geographic location advantage to make it a maritime transport hub."

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.