Sri Lanka identifies key investment projects for Commonwealth Business Forum participants

The Colombo Page - 03/11/2013

Sri Lanka has identified several key areas for investment opportunities to offer to the attendants of the Commonwealth Business Forum (CBF) that will coincide with the Commonwealth Heads of Governments Meeting (CHOGM) scheduled to be held in Sri Lanka from 15th to 17th November, 2013.

The Commonwealth Business Forum will be held from 12th to 14th November at the Hotel Cinnamon Grand in Colombo.

The Forum, organized by the Commonwealth Business Council (CBC) in collaboration with the Sri Lankan government, is seen as a great opportunity for Sri Lanka to enlighten the world about the investment potentials in the island.

It is the premier business event in the Commonwealth bringing together Heads of Government, Ministers, and top business leaders from around the world and will be attended by over a thousand delegates, according to the CBC.

The main goal of the Forum is to enlighten the attendants from the Commonwealth countries as well as from other participating countries on the vast investment opportunities available in the island in various sectors and attract foreign direct investment from potential investors.

With this objective, the CBC jointly with the Board Investment (BOI) has identified investment opportunities which could be offered to potential foreign investors during the CBF.

Tourism and Leisure, Higher Education and Training, Agriculture and Fisheries, Health, Information Technology, Manufacturing and Agro-processing and Infrastructure including Aviation have been identified as key areas to promote foreign investment.

The Cabinet last week approved a proposal by Investment Promotion Minister Lakshman Yapa Abeywardena to proceed with the relevant activities of the CBF.

Sri Lanka has also organized the 'Reflection of Sri Lanka' a mega exposition to showcase the country's trade, tourism and investment potential to the global visitors who will be in the country to attend the Commonwealth Summit.

The four-day event is co-organized by the Ministry of Economic Development, the Ministry of Industry and Commerce and the Export Development Board (EDB) functioning under it, and joined by Sri Lanka Tourism, and the Board of Investment.

The 'Reflection of Sri Lanka' will be held from November 13 at the Jana Kala Kendraya (Folk Arts Center), in Battaramulla.

The exposition is aimed at illustrating Sri Lanka's capacity to easily integrate with global value chains. It will also highlight the country's logistic capabilities, high knowledge base, and its dedication to international compliance standards encasing trade, tourism and investment opportunities in them.

According to Minister of Industry and Commerce Rishad Bathiyutheen, 660 local and international exhibitors and more than 800 potential buyers from 31 countries have confirmed their participation in the event.


According to EDB, 579 local exhibitors in SME, tourism, trade and investment have come forward to enlist for Reflection's trade exposition. Another 81 Foreign companies as machinery and hi-tech equipment exhibitors from key hotspot markets such as China, India and Germany will participate.

Sri Lanka-China FTA not a blindsided rush- Minister Bathiudeen

nation.lk - 03/11/2013

Rishad Bathiudeen and CNCI delegation at the Ministry of Industry and Commerce on October 31. Gamini Gunasekara (new Chairman, CNCI) is seated second from left next to Minister Bathiudeen

Forthcoming FTA with China is not a blindsided move but is a process involving studies and even relevant stakeholder consultations. “We are still at initial study phase and we will not finalize product lists without consulting Lankan stakeholders such as various chambers and industries,” assured Minister of Industry and Commerce of Sri Lanka Rishad Bathiudeen to the oldest Industry Chamber in the country on October 31 in Colombo.

Minister Bathiudeen was addressing a delegation led by new Chairman, CNCI Gamini Gunasekara on October 31 at the Ministry of Industry and Commerce. Also taking part were Secretary, Ministry of Industry and Commerce Anura Siriwardena and additional secretaries, officials of Department of Commerce and CNCI officials.

Commenced in 1960, pioneering CNCI is the foremost service facilitator as well as the voice of the Industry. Currently, it consists of almost 300 members including SMEs. It is representative of all the industry sectors of Sri Lanka. Along with new Chairman Gunasekara, reps from such firms as Union Chemicals Lanka, Browns Group, EB Creasy, Central Industries, and Sinwa Holdings were meeting Minister Bathiudeen on October 31.

According to the Department of Commerce of Sri Lanka, the total trade turnover between Sri Lanka and China which stood at US $ 658.94 million in 2005 has increased by a massive 306% to $ 2676.13 million by 2012. In the corresponding period, exports to China increased by 286% to $108 million. This is an achievement considering the fact    that of the 50 Asian Countries only 8 including Sri Lanka were able to maintain a positive export growth to China since 2008. Latest statistics show that China has also entered the first 25 export    destinations for Sri Lankan products.


Having congratulated CNCI new Chairman Gunasekara on his new appointment and welcoming him, Minister Bathiudeen continued: “Lanka-China FTA is a major force to address our trade imbalance with China and increase our export volumes. We are still at initial study phase and we will not finalize product lists without consulting Lankan stakeholders such you and various other Chambers and industries. It is not a closed process but a transparent one. Once the initial studies are concluded, stakeholder meetings will commence. Of course, we will carefully craft market access on our side. Accordingly, we look forward to your valuable inputs. We will also take into account of the strengths of our trading partner, and product lists under other FTAs including Indo–Lanka, Lanka-Pakistan and APTA when we finalize the product lists in this regard.”

Tea export earnings reach Rs 142 b upto September

Daily News - 29/10/2013

Sri Lanka’s overall tea export earnings during the period January – September of the year has increased by Rs. 10.6 billion year on year (YoY) to record Rs. 141.9 billion, according to a Forbes and Walker report.

However, overall export volumes in the first nine months of the year has decreased by 1.4 million kg year on year to 234.5 million kg.

The total tea export earnings in August also increased to Rs. 123.1 billion while tea export earnings in September was Rs. 18.5 billion. The volumes decreased by 3.1 million kg to 28.7 million kg.

CIS, Iran, Turkey, Iraq, Syria, UAE, Kuwait, Japan, Jordan and Libya are currently the Sri Lanka’s top ten tea importers .

“In spite of the erratic weather conditions experienced in the high and medium elevations, the Black tea production for the month of September and for the cumulative period, January to September 2013 have recorded positive variances compared to 2012,” John Keells Tea Market Report said.

High grown production has gained by 18% whilst Medium Grown production has shown an increase of 14% for the month. Cumulatively too, the production of these two elevations have shown increases of 3.47% and 5.55% respectively. In contrary, Low grown production has recorded a significant negative variance of as much as 20% for the month.

Lanka moves up in global competitiveness

The Island - 28/10/2013

Rishad Bathiudeen (Minister of Industry and Commerce-left) in discussion with (HE) Cristian Barros (New Delhi based Ambassador of Chile accredited to Sri Lanka-right) during 25 October's presentation at Mt Lavinia Hotel.

Signalling a positive turn for its export diversification moves, Sri Lanka has notched itself up in the latest Global Competitiveness Index. And no less than 22 FTAs have helped Sri Lanka's topmost Southern hemispheric trading partner to lift itself off from a 'backyard GDP' and speed up to one of the best economies in South America today.

"I am pleased to say that Sri Lanka has improved to Rank 65 from its previous 68 in the Global Competitiveness Report 2013-2014. We stand just below Russian Federation in this ranking. The same index says that, Sri Lanka leads among SAARC countries on competitiveness levels" said Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on 25 October in Mt. Lavinia.

Minister Bathiudeen was addressing the Seminar "From Agriculture to Agribusiness: The Pathway of Chile" last Friday (25) at Mount Lavinia Hotel. Joining the session were Sergio Rodriguez (Faculty of Agriculture and Forestry Engineering, University Catholic of Chile), and Mano Selvanathan (Honorary Consul of Chile in Sri Lanka). The session was attended by officials from EDB, private sector reps including Cargills, and academia and officials from Chile's Delhi Embassy.

Minister Bathiudeen revealed: "Chile is one of Sri Lanka's leading trade partners in the South American region. Bilateral trade between Chile and Sri Lanka stood at $ 45 Mn in 2012. Our top two exports to Chile are from agro sector- that is, tea and spices. The bi-lateral agreement, for agricultural trade, and cooperation, between both countries, signed in Colombo, in 2007, strengthened our historic links, further. We also see Chile as a platform to access other markets, in the South American region. We congratulate Chile for getting selected as the highest ranked, Latin American nation by the World Economic Forum in its latest, Global Competitiveness Report 2013-2014. This achievement is despite the challenging international markets. I am also pleased to say that, Sri Lanka too has improved to Rank 65 from its previous 68 in the same Index. We stand just below Russian Federation in this ranking. The same index says that, Sri Lanka leads among SAARC countries in competitiveness levels."


"Back in 1980s we were backward but after opening our economy and entering to many FTAs, our GDP grew steadily and now Chile is a global player. As a result, our exports grew and today we are the fifth largest exporter of wine in the world" said (HE) Cristian Barros, the New Delhi based Ambassador of Chile accredited to Sri Lanka, and added: "Sri Lanka - Chile trade cooperation goes back a long way despite being geographically distant. And of course, 90% of Chileans drink Ceylon Tea!"

Reflection of Sri Lanka

news.lk - 22/10/2013

A joint Trade, Tourism and Investment exhibition parallel to the Commonwealth Heads of Government Meeting (CHOGM) has been organized to be held from 13th to 17th November at the Janakala Kendraya in Battaramulla in Colombo under the title “Reflection of Sri Lanka”.

This exhibition has been jointly organized by the Ministries of Economic Development, Industry and Commerce and Investment Promotion.  More than 300 Sri Lankan exporters including 75 machinery exporters and 100 technology providers and 200 SMEs will showcase their products at this mega exhibition.


At a media conference held at the Centre for Media Development of the Information this morning, the Deputy Minister of Economic Development Mr. Susantha Punchinilame said that holding of Commonwealth Heads of Summit (CHOGM) in Sri Lanka will provide the opportunity for Heads of States, Business delegations and the international journalist to find the true situation about Sri Lanka at a time malicious propaganda are being carried out about the country by anti-national elements. He said that the Economic Development Ministry in collaboration with other Ministries has planned to get the maximum benefit out of the CHOGM.

Minister of Investment Promotion Mr. Lakshman Yapa Abeywardene addressing the media conference criticized the stance of the opposition about CHOGM despite it is being an event beneficial to the people of this country.  He said that when Sri Lanka was nominated as the host country the opposition claimed that Heads of States will not come to the country and even tried to prevent them coming for the Summit.  Finally when almost all the Heads of States have confirmed their participation, the Minister said that they are now criticizing about the expenditure.  He said that all infrastructure development being carried out is part of the ongoing development process since a long time and there is nothing new in these activities.

The Minister said that the Board of Investment is planning to get foreign investments increased to 10 million U.S.$ within the next 4 years as a result of the CHOGM. He said that the BOI will present 56 Investment Proposals to the Heads of States and the participants of the Business Forum.

Minister of Commerce and Industry Mr. Rishard Badiuddin said that CHOGM is a landmark event and the Reflection of Sri Lanka Exhibition will present more than 300 Sri Lankan products to the foreign visitors.  He said that more than 1,000 buyers are expected to attend CHOGM and its related events and the Exhibition has been organized to focus their attention on products and other facilities and investment potentials available in Sri Lanka.  He said that the CHOGM will crate the background for Sri Lanka to increase its exports to 20 Million US$ by 2020.


Details of the Exhibition arrangements that have been made by the Export Development Board and the Tourism Promotion Authority were made by the Chairman and Chief Executive of the Sri Lanka Export Development Board Mr. Bandula Egodade and the Chairman of the Sri Lanka Tourism Development Authority Mr. Bashwara Gunaratne.  The Secretary to the Ministry of Commerce and Industry Mr. Anura Siriwardene also spoke at the Media Conference.  The Secretary to the Ministry of Mass Media and Information Dr. Charita Herath and the Director General of the Government Information Depart Professor Ariyaratne Atugala also attended the Media Conference.

Exports turn around, Lanka enters CHOGM biz runway

Asian Tribune - 23/10/2013

Rishad Bathiudeen (Minister of Industry and Commerce-left), Lakshman Yapa Abeywardena (Minister of Investment Promotion-centre) and Susantha Punchinilame (Deputy Minister of Economic Development) watch a presentation on ‘Reflection of Sri Lanka’ during 22 October’s special presser held at the Ministry of Mass Media and Information, Colombo 5.

An eager Sri Lanka launched the business side of its forthcoming CHOGM -and announced its new export turnaround to a packed presser on 22 October. “I am happy to say that our exports from January to September this year shows an increase of 1.07%, in comparison to the same period in 2012. This shows that, having faced the international market challenges our exports are now gradually strengthening” said Rishad Bathiudeen, Minister of Industry and Commerce on 22 October.

Minister Bathiudeen was addressing the official media announcement and special presser on “Reflection of Sri Lanka” held at the Ministry of Mass Media and Information in Colombo 5 on 22 October. Along with Minister Bathiudeen, also present were Susantha Punchinilame (Deputy Minister of Economic Development), Lakshman Yapa Abeywardena (Minister of Investment Promotion), Anura Siriwardena (Secretary, Ministry of Industry and Commerce), Charitha Herath (Secretary, Ministry of Mass Media and Information), officials of Sri Lanka Tourism, BoI, Tea Board, EDB, Gem and Jewellery Authority, and Ministry of Economic Development.

“Reflection of Sri Lanka’ is an exposition showcasing the trade, tourism and investment potential of the country, is to be held in parallel to the CHOGM. ‘Reflection of Sri Lanka’ event will be held from 13 to 17 November. ‘Reflections of Sri Lanka’ is co-organized by, the Ministry of Economic Development, the Ministry of Industry and Commerce and the EDB functioning under it, joined by Sri Lanka Tourism, and The Board of Investment. Already 700 exhibitors and almost 1000 buyers have come forward to EDB to enlist for ‘Reflection of Sri Lanka.’

Speaking about new export growth, Minister Bathiudeen said: “I am happy to inform you today that we are seeing an export turnaround according to our latest export data. As of September our total export value for 2013 is recorded at, $ 7314 Mn. Our exports from, January to September this year therefore shows 1.07% increase in comparison to the same period in 2012. This shows that having faced the international market challenges our exports are now gradually strengthening. This latest export growth is helped by footwear exports growing by 85%, export crops such as spices, growing by 36.8%, diamonds, gems and jewelry exports, growing by 11.28%, fisheries exports, growing by 11%, and apparel exports, growing by 5.64%. Our strategic hub and logistical positioning is a major force in our development. The Free Trade Agreements that we have with India and Pakistan, on 8200 products, and more importantly our forthcoming FTA with China which is world’s largest consumer market are factors that international investors cannot find in many other emerging economies. Even our service sector is attractive for investments. The 2011 “A.T Kearney Global Services Location Index” places Sri Lanka at a respectable rank of 21 above Australia, France, and Portugal!”

Detailing the ‘Reflection’ event, Minister Bathiudeen revealed: “‘This event will be held in parallel to the forthcoming landmark event, the Commonwealth Heads of Government Meeting (CHOGM), as part of the leadership vision of HE the President Mahinda Rajapaksa. The CHOGM main event is represented by 54 Heads of States. The event will highlight the country’s capabilities, high knowledge base, and our dedication, to compliance standards together with tourism and investment opportunities. More importantly, this is an exposition hosting 700 exhibitors, displaying the best of Sri Lanka’s diverse products for export”.

“Anura Siriwardena (Secretary, Ministry of Industry and Commerce), addressing the event, said: “This is a rare but a very opportune moment to enhance the image of Sri Lanka to the international business. Almost 1000 buyers have already come forward to EDB to enlist for Reflection of Sri Lanka. We have even enlisted 100 technology providers. We are opening the event to the public for no less than three days – on 14, 15 and 17 November.”

Bandula Egodage, Chiarman/CEO of EDB, making a detailed presentation of Reflection of Sri Lanka, said: “Reflection gives the rare opportunity to our export community to meet international buyers in one location, right here in Sri Lanka. The EDB is using a multi-channel promotion strategy involving e-catalogues, e-brochures, web banners, press and electronic advertisements to engage the international buyers to our export products. Already 300 exporters, 700 exhibitors, 200 export oriented SMEs, 75 machinery exporters, 100 technology providers, to enlist for ‘Reflection of Sri Lanka’ – some of them being participants of Expo 2012 held in March 2012. There will also be exhibitor pavilions with sector branding. More importantly, many B2B sessions are planned with the visiting international business.”

Lakshman Yapa Abeywardena (Minister of Investment Promotion), addressing the event, said: “Our target is to source large and medium scale investors to Sri Lanka. We have ready information and procedures on 56 investment sectors in Sri Lanka awaiting the visiting international investors. We are not upgrading our infrastructure solely for the CHOGM-it’s part of our infrastructure development plan!”

Sri Lanka exports up 10.7-pct in August, imports down

Lanka Business Online - 21/10/2013

Sri Lanka's exports rose 10.7 percent to 917.8 million US dollars in August 2013 from a year earlier, and import dropped 7.7 percent to 1.6 billion US dollars, the Central Bank said.

Export earnings from tea grew 49.3 percent to 142.8 million US dollars and apparel exports barely grew 2.1 percent to 366.5 million US dollars. Rubber products export value dropped 8.0 percent to 77.7 million US dollars.

Imports fell 7.7 percent to 1.6 billion US dollars in August. Consumer goods rose 18.6 percent to 266.6 million US dollars and intermediate goods fell 5.7 percent to 1,017 million US dollars though fuel imports rose 7 percent to 531.3 million US dollars.

Investment goods plunged 25.7 percent to 330.5 million US dollars, with machinery and equipment falling 33 percent to 172.5 million US dollars and transport equipment falling 46 percent to 45.8 million US dollars.

Building material imports were up 13.8 percent to 908.8 million US dollars.

The trade deficit narrowed 24 percent to 698 million US dollars. Merchandise trade deficits occur when domestic economic agents earn money from outside the trade account (exports of goods) and spend the proceeds, triggering imports.

These include remittances (exports of labour), tourism, foreign borrowings (exports of debt) and even foreign direct investments (exports of investments).


In August remittances rose 16.3 percent to 570 million US dollars, earnings from tourism were up 34.7 percent to 110.2 million US dollars and inflows to the government was up 0.8 percent to 318 million US dollars.