Korean University Students on Sri Lanka Tour

Asian Tribune - 23/01/2014

Myongji University in Korea in collaboration with the Korea International Cooperation Agency (KOICA) and the Embassy of Sri Lanka in Korea, will be sending a student delegation to Sri Lanka from 20th – 27th January, 2014.

The delegation consists of Professor Bell J.C. Park, a faculty member of the International Trade Department of the Business Administration College at Myognji University, and 15 university students whose major interest is international trade business.

The objective of the visit is to promote greater understanding through enhancement of economic, educational, technical and cultural cooperation between students of Korea and Sri Lanka. On the first day of their stay in Sri Lanka, the delegation will visit Sri Lanka’s KOICA and KOTRA offices as courtesy calls for the country representatives. Additionally, the Korean students will get an opportunity to visit two of Sri Lanka’s universities, University of Colombo and University of Peradeniya, for the purpose of exchanging cultural experiences and discussing the possibility of signing a Memorandum of Understanding between the Sri Lankan universities and Myognji University.

The Export Development Board of Sri Lanka has arranged an interactive session with its member companies along with a progamme to educate the Korean students about exportable products of Sri Lanka. In addition to meeting the Export Development Board, the delegation will visit the Ceylon Chamber of Commerce and the National Chamber of Commerce as an opportunity to build a stronger relationship with the Sri Lankan chambers.

Prior to their departure to Sri Lanka, the delegation met the Sri Lankan Ambassador to South Korea, Mr. Tissa Wijeratne,at the Sri Lanka Embassy in Seoul.

Maldives-Sri Lanka, 'a unique friendship'

The Island - 23/01/2014
By Don Asoka Wijewardena

Head of the Maldivian delegation Quasim Ibrahim addressing business entrepreneurs at the Maldives-Sri Lanka interactive business session on Tuesday said that the Maldives and Sri Lanka had been enjoying a unique friendship born of traditional ties in ethnicity, language and culture. These bonds signified historical ties that date back hundreds of years. The relationship had been served well by geographic proximity, frequent travel and brisk trade.

The session was organized by the Sri-Lanka Maldives Bilateral Business Council in association with the Ceylon Chamber of Commerce and was held at the Hilton.

He pointed out that diplomatic relations between the two countries were established on July 26, 1965 - the date of independence of the Maldives. The Maldives and Sri Lanka were the founding members of the South Asian Association for Regional Cooperation (SAARC). Bi-lateral cooperation agreements existed in a variety of fields, including education, defense, air services, cultural cooperation, visa and consular matters, economic and technical cooperation, science and technology, seafaring and intelligence sharing.

Ibrahim emphasized that the vision of the Maldivian government would be to become a high income, resilient and inclusive economy by laying the foundation to diversify the economy to new sectors and industries. The government had formulated a policy to establish free trade and economic zones and to diversify the financial services sector through the development of a modern legal regime for financial services; attracting international banks and other financial institutions; building reputation of Maldives financial services and attracting investment funds/ venture capital.

Sri Lanka Export Development Board Directress Jeevani Siriwardena said that the key economic targets of Sri Lanka would be a sustained progress towards US $ 100 billion economy and US $ 4,000 per capita income by 2016.

The Gross Domestic Product (GDP) contributions included 59 per cent from services, 11 per cent from agriculture and 30 per cent from Industry.

She pointed out that the Sri Lanka's export growth had reached an upward trend in fairly recent times as it had increased from US $ 6,000 million in 2005 to US $ 9,000 million in 2012. It had also contributed to 20 per cent of the GDP.

Siriwardena added that Sri Lanka's export markets in 2013 had captured 24 per cent in the United States following Netherlands 2 per cent, France 2 per cent, Singapore 2 per cent, Iran 2 per cent, UAE 2 per cent, Japan 2 per cent, Russian Federation 3 per cent, Germany 4 per cent, Belgium 5 per cent Italy 5 per cent, India 5 per cent and the United Kingdom 10 per cent.

She said that bilateral trade between Sri Lanka and Maldives had been growing rapidly in the midst of competitive markets in the region. Sri Lanka's main exports to the Maldives included processed food, insulated wires and cables, fresh fruits and vegetables, confectioneries and bakery products.

Tea exports revenue hit record high in 2013

nation.lk - 17/01/2014

Sri Lanka has achieved the highest ever revenue from tea exports in 2013 realizing a total revenue of Rs. 199.4 billion surpassing the previous best of Rs.180.4 billion in 2012, recent statistics from a leading tea brokerage firm showed. The record revenue was realized despite the island exporting lesser quantity of tea from January – December 2013 where cumulative tea exports totalled 319.6M/kgs, showing a marginal decrease of 0.28M/kgs vis-à-vis 319.9M/kgs of 2012.

“When analyzing the respective categories, Tea in bulk totalling 129.8M/kgs for the period January – December 2013 shows a decrease of 2M/kgs vis-à-vis 131.8M/kgs of 2012 and tea in packets too totalling 156.9M/kgs show a marginal decrease when compared to 157.4M/kgs of 2012. On the other hand Tea in bags totalling 25.7M/kgs in 2013, shows a growth vis-à-vis 23.9 of 2012,” Forbes & Walker Tea Brokers said in a commentary.

They noted that Commonwealth of Independent States (CIS), which comprises countries from former Soviet Republics, has retained the No.1 position as the largest importer of Sri Lankan tea, followed by Iran and Turkey.

“Iraq and Syria are the other noteworthy importers, whilst, UAE and Kuwait also have imported a significantly higher volume in 2013 vis-à-vis 2012, whilst Libyan imports haves shown a decrease compared to the corresponding period of 2012,” they noted.

The nine full member states of the Commonwealth of Independent States are Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan and Uzbekistan.

Over 200 stalls at Footwear and Leather Fair in Feb.

Lanka Business Today - 11/01/2014

The sixth Footwear and Leather Fair is to be held from February 7 to 9 featuring over 200 stalls.

The event, organized by the Export Development Board (EDB), the Ministry of Industry and Commerce, Industrial Development Board and the Sri Lanka Footwear and Leather Products Manufacturers’ Association (SLFLPMA), is expected to provide a platform for Sri Lankan footwear and leather products exporters, manufacturers and Small and Medium Enterprises (SMEs) to showcase their talents and capabilities locally and globally.

Footwear and leather industry contributes a considerable share to the country's exports earnings and has shown a remarkable growth during. In addition, the footwear manufacturers cater to more than 50% of the local market requirement, minimizing the imports of such items, says Harsha Pathberiya, Deputy Director, Industrial Products, EDB.

It is said that 150 operations are necessary to produce a pair of shoes. The growth of this labour intensive industry will widen the employment opportunities for youth in the country too.

Internationally acclaimed recognition of the Sri Lanka apparel industry, highly skilled and trainable work force, availability and easy access to natural leather in south India are considered favourable factors for the growth of the industry.

This years' fair will exhibit a wide range of footwear, leather products, travel goods, raw materials, machinery, components and accessories.

Sri Lanka’s textile & garment exports surge 35% in Nov’13

Fibre2fashion - 09/01/2014

The textiles and garment industry turned out to be the leading driver of growth in the industrial sector in November 2013 for Sri Lanka, according to a press release issued by the Economic Research Department of the Central Bank of Sri Lanka.

Earnings from export of textiles and garments grew by 35 per cent year-on-year to US$ 491.4 million in November 2013, the Bank said in the press release.

“Export of garments to both the EU and USA, the major export destinations of garments, grew by 16.7 per cent and 58.7 per cent, respectively in November 2013, reflecting the recovery in those economies as well as seasonal demand,” the statement said.

From January to November 2013, Sri Lanka’s textiles and apparel exports were valued at US$ 4.054 billion, registering an increase of 11.6 percent over exports of US$ 3.633 billion made during the corresponding period of 2012.

Despite the strong growth in export of textiles and garments, there has been a steady decline in the importation of textile and textile related articles, reflecting improved backward linkages and higher value addition in the garment industry.

In November 2013, Sri Lanka imported textiles and clothing items worth US$ 182.8 million, showing a drop of 10.4 percent compared to US$ 204 million imports of textiles and apparel made in November 2012.

In the first eleven months of 2013, textiles and apparel imported by Sri Lanka were worth US$ 1.871 billion, showing a drop of 9.7 percent as against imports of US$ 2.072 billion made during the corresponding period of previous year.

In 2012, Sri Lanka exported textiles and apparels worth US$ 3.8 billion, and the country had set a target of achieving US$ 4.1 billion in textiles and garment exports in 2013, which is most likely to be achieved.

Meanwhile, the Sri Lankan apparel industry is enthusiastic about the signing of a free trade agreement (FTA) with China in mid-2014, which would give it duty-free access to the country with the world’s largest population.

If the Sri Lanka-China FTA materializes, the island nation’s textiles and garment exports are forecast to cross US$ 4.5 billion-mark this year. 

Second largest SAARC partner hungry for Lankan exports, FTA trade

Asian Tribune - 09/01/2014

Rishad Bathiudeen (Minister of Industry and Commerce) discusses with His Excellency Maj Gen Qasim Qureshi (Pakistan High Commissioner to Sri Lanka) on 07 January in Colombo.

Sri Lanka’s second largest trade partner in SAARC is hungry for more Lankan exports in the coming year-while also closely looking at Sri Lanka’s sugar sector for entry! ”Pakistan’s new GSP with EU is an opportunity for Sri Lankan exporters and they can do more things. In fact, we should jointly explore whatever is possible within the rules and regulations of these new developments!” stressed an upbeat Major Genenral Qasim Qureshi (Pakistan High Commissioner to Sri Lanka) on 07 January in Colombo.

High Commissioner Qureshi was addressing Rishad Bathiudeen Minister of Industry and Commerce on 07 January during his new-year courtesy call on Minister Bathiudeen at the Ministry of Industry and Commerce premises in Colombo 03.

Addressing Minister Bathiudeen, (HE) Qureshi revealed: “We believe that there is strong unrealized trade potential between both countries. Through the Joint Economic Commission, we annually review our trade progress of our FTA so that it becomes increasingly ‘commerce-friendly’ for both countries. And there is a trade imbalance between Pakistan and Sri Lanka and we want to reduce that. Which means that we should also explore avenues and ways in which more products from Sri Lanka are exported to Pakistan. So what we want to do is to expand the bilateral trade from the present annual level of $ 440 Mn to $ One billion in the coming years-perhaps even in a couple of years! The way to do this is by exploring areas where we can see new trading starts between the two countries in not just the traditional trade items but also to look at new items and new products. Also, Pakistan’s new GSP with EU is an opportunity for Sri Lankan exporters and they can do more things. Of course the rules of origin are from Pakistan. For example, Sri Lankan exporters can consider more raw material exports to Pakistani industries that are manufacturing to EU using this GSP. In fact, we should jointly explore whatever is possible within the rules and regulations of these new developments!”

According to the Department of Commerce, Pakistan is the second largest trading partner of Sri Lanka in the SAARC region after India. Lankan exports to Pakistan topped $ 42.97 Mn from January to June in 2013 and more importantly, registered a 27% surge from 2010’s $ 60.38 Mn to $ 82.75 Mn by 2012. A substantial growth in bilateral trade is seen in both exports and imports after the Free Trade Agreement between the two countries was implemented in 2005. The total trade has increased from US $ 158 Mn in 2005 to US $. 433.69 Mn in 2012 (and from January to June 2013, at $289.23 Mn). The balance of trade has always been in favour of Pakistan.

Speaking on investments, (HE) Qureshi said: “We are also looking into getting new investments from Pakistan to Sri Lanka because we think that it is not only just commerce but mutual investments too can strengthen bilateral economic relations. We are looking at some areas where we can bring investment from Pakistan to Sri Lanka and we are now keenly looking at the sugar industry in Sri Lanka for new investments.”

Sri Lanka spends around $ 60 Mn for sugar imports and imported $ 3.38 Mn of sugar from Pakistan in 2012. As for Pakistani investment in Sri Lanka, from 2005 to the third quarter of 2013, FDI from Pakistan to Sri Lanka stood at $ 7.5 Mn (cumulative) across 15 investment projects. In November 2013, Tarek M. Khan, President of Pakistan Sri Lanka Business Forum (PSLBF), meeting Minister Bathiudeen in Colombo, revealed that the Pakistani investors have a preference for Sri Lanka due to logistics and rapidly developing infrastructure.

Minister Bathiudeen, who praised Pakistan’s ongoing support to Sri Lanka at various times, responding to Qureshi, said: “It is with pleasure that our government observes that the Eleventh Sri Lanka-Pakistan trade talks concluded successfully on 27 November 2013, a day ahead, helped by the participation of Pakistani Federal Minister of Industries & Production, Ghulam Murtaza Jatoi.” Minister Bathiudeen added: “I believe that in the coming year we should maximize all opportunities presented by our FTA and enhance our bilateral trade levels. Our exporters are already leveraging the PSFTA and it is time our exporters try on new product exports since there are more than 4800 product lines available to them under this PSFTA. I and my officials welcome Pakistani investors and traders keen on Sri Lanka and are always ready to extend our fullest assistance.”

Pakistan's latest GSP with EU, opportunity for Sri Lankan exporters: Qureshi

Daily Mirror - 08/01/2014

Sri Lanka’s second largest trade partner in SAARC is looking for more Lankan exports in the coming year, while also eyeing Sri Lanka’s sugar sector entry,

”Pakistan’s new GSP with EU is an opportunity for Sri Lankan exporters, and they can do more things. In fact, we should jointly explore whatever is possible within the rules and regulations of t hese new developments, said Pakistan High Commissioner to Sri Lanka Major General Qasim Qureshi, addressing Industry and Commerce Minister Rishad Bathiudeen during his new-year courtesy call on the Minister.

Addressing Minister Bathiudeen, Qureshi said, “We believe that there is strong unrealized trade potential between both countries. Through the Joint Economic Commission, we annually review our trade progress of our FTA so that it becomes increasingly ‘commercefriendly’ for both countries. And there is a trade imbalance between Pakistan and Sri Lanka and we want to reduce that.

Which means that we should also explore avenues and ways in which more products from Sri Lanka are exported to Pakistan.”

“So what we want to do is to expand the bilateral trade from the present annual level of $ 440 million to $ 1 billion in the coming years-perhaps even in a couple of years.

The way to do this is by exploring areas where we can see new trading starts between the two countries in not just the traditional trade items but also to look at new items and new products.

Also, Pakistan’s new GSP with EU is an opportunity for Sri Lankan exporters and they can do more things. Of course the rules of origin are from Pakistan. For example, Sri Lankan exporters can consider more raw material exports to Pakistani industries that are manufacturing to EU using this GSP. In fact, we should jointly explore whatever is possible within the rules and regulations of these new developments.”

According to the Department of Commerce, Pakistan is the second largest trading partner of Sri Lanka in the SAARC region after India.

Lankan exports to Pakistan topped $ 42.97 mn from January to June in 2013 and more importantly, registered a 27 percent surge from 2010’s $ 60.38 mn to $ 82.75 mn by 2012. The total trade has increased from US $ 158 mn in 2005 to US $. 433.69 mn in 2012 (and from January to June 2013, at $289.23 mn). The balance of trade has always been in favour of Pakistan.

Speaking on investments, Qureshi said, “We are also looking into getting new investments from Pakistan to Sri Lanka because we think that it is not only just commerce but mutual investments too can strengthen bilateral economic relations.

We are looking at some areas where we can bring investment from Pakistan to Sri Lanka and we are now keenly looking at the sugar industry in Sri Lanka for new investments.”

“I believe that in the coming year, we should maximize all opportunities presented by our FTA and enhance our bilateral trade levels.

Our exporters are already leveraging the PSFTA and it is time our exporters try on new product exports since there are more than 4800 product lines available to them under this PSFTA,” Bathiudeen said.