China’s Fujian business delegation in town

Daily Nation - 07/03/2014

Bandula Egodage, Chairman/CEO, EDB-right, meets Song Kening, Director-General of Fujian Provincial Foreign Affairs-seated next to Mr Egodage

Visiting business delegation from China’s emerging high growth province Fujian has shown interest in more Lankan exports into its demanding marketplace and has pushed for direct links with Lankan businesses.

“Sri Lanka has been rebuilt as the pearl of the Indian Ocean. And I agree with you that both sides can mutually benefit in many sectors of cooperation, including trade. In fact, we want Sri Lanka – Fujian trade to grow in Sri Lanka’s favour” said Director-General of Fujian Provincial Foreign affairs Kening addressing the Sri Lankan business team led by Bandula Egodage, Chairman/CEO, EDB along with Dr Yousuf Maraikkar ,ED, EDB, Sujatha Weerakoone DG, EDB and EDB sectoral representatives.

Kening is now in Colombo on a three day official visit leading a 21-member strong business and investment delegation (which he termed as an Economic delegation) from Fujian Province, China, facilitated by EDB (for B2B as well as networking). Kening, who handles foreign relations of Fujian, is in par with the rank of any Chinese Provincial Foreign Minister.

Among the leading Fujian firms and institutions in the delegation were China National Engineering Research Centre of JUNCAO Technology, Fujian Agriculture & Forestry University, Centron Communication Technologies  Fujian Co, Fuzhon Xinbei Bio-Chemical Industry Co, Yuangdong Huamei electric Motors, Gold Billras Water Environmental Engineering Co, Fujian Minwell Industrial Co, Fujian ABLE Motor Group Co, Ningde Junlv Agriculture Co, Ningde Hongdi Hotel Co, Fuzon Fanrong Jewelry Co, and Beijing Guo Chatang Health Technological Development Co.

Among the Sri Lankan biz taking part, facilitated by EDB, were Tropical Foods, Global Seafoods, Hayleys Fibre, Micro Cars PLC, Diesel & Motor Engineering PLC (DIMO), Electronics Manufacturers and Exporters Association of Sri Lanka, Ceylon National Chamber of Industries, SLAMERP, Raigam Marketing, Global Rubber Industries, COSTI, Nature’s Beauty Creations, Sri Lanka Chamber of Garment Exporters and FGM Lanka, among others. During 06 Thursday’s meeting, Lankan fisheries/seafood, tea, gem & jewellery, tourism, electronics and cosmetics appeared to have drawn the immediate attention of the visiting Fujian delegation.

“Investment, tourism and trade –all these are aspects of commercial diplomacy” said EDB Chairman/CEO Egodage, who warmly welcomed Fujian Director-General Kening and the delegation to EDB. “We should not restrict ourselves to discussions but also set up an action plan after this session. I also urge potential partners at both sides to forge direct contacts with each other right here. Both sides can mutually benefit in many sectors of cooperation, including trade” Egodage added.

“Sri Lanka has been rebuilt as the pearl of the Indian Ocean. And I agree with you that both sides can mutually benefit in many sectors of cooperation, including trade” responded Director-General Kening, and added: “Post-war Sri Lanka’s economic momentum is good. We are confident of Sri Lanka’s progress and very happy to partner with Sri Lanka.

There is also good cooperation between people of Sri Lanka and Fujian and Fujian government attaches great importance to this connection. With this visit, we aim for stronger ties, friendship and networking mechanism. This delegation is only 21 members but they represent the typical business sector of Fujian. During this visit, we want to establish direct links with Lankan entrepreneurs and Fujian businesses. We sincerely appreciate Sri Lanka EDB’s efforts to this end. In 2013, Fujian province exported $ 170 Mn to Sri Lanka while it imported only $ 13 Mn goods from Sri Lanka. We want Sri Lanka – Fujian trade to grow in Sri Lanka’s favour.

With this latest initiative, there is opportunity for more Sri Lankan products to enter the Fujian market. Lack of natural disasters, strong ocean resources and access, mild, stable year-round weather are very attractive “Lankan factors” for Fujian businesses and investors. You see, China is a huge seafood consumer. Many Lankan seafood exporters present here today arranged by EDB, are therefore a very encouraging situation to us!”

Sri Lanka German trade tops US$ 852 mn

Daily News - 10/03/2014

A visitor making enquiries at the Sri Lankan ITB stand 

Sri Lanka German trade has hit record heights last year with the total trade turnover exceeding US$ 852 million.

G. L. Gnanatheva, First Secretary (Commercial) Sri Lankan Embassy in Germany said that total trade turnover was in the excess of US $ 771million. In 2012 Sri Lanka exported goods to Germany to the tune of US$ 452 million while German exports to Sri Lanka stood at US$ 319

He said that for the first time trade balance too has narrowed from US$133 million to US$ 83 million.

Sri Lankan exports to Germany included tea, apparels and electronic equipment based products manufactured in the Free Trade Zone.

He said that most of the exports from Germany to Sri Lanka are automobiles with Mercedes Benz and BMW leading the way. Other exports from Germany to Sri Lanka include medical equipment and machinery.

Sri Lanka German diplomatic relations are very strong and cordial and this too was a reason for additional trade.

He also said that Sri Lanka is a preferred destination for German tourists which is currently number three to Sri Lanka. Over a decade ago Germany was the highest tourism contributor to Sri Lanka.

Germany is Sri Lanka's second largest investor from the European Union. Many of the German companies operating in Sri Lanka are global leaders in their field. 

Cinnamon exports rise by 6.4% to $ 129.5 mn

Daily News - 03/03/2014

Bandula Egodage (Chairman/CEO, EDB-at centre) with Dr Yousuf Maraikkar (ED, EDB-left) and Sujatha Weerakoone (DG, EDB-right)

Ceylon Cinnamon, which is Sri Lanka’s second global brand, has secured its trademark in two more leading markets-with one more country application in the registration process. ”I commend the EDB’s Agro division for their efforts on this initiative” said Bandula Egodage (Chairman/CEO, EDB) on 27 February in Colombo.

Chairman Egodage was addressing the monthly review meeting of EDB last week when he was informed by EDB’s agro division of the latest development on Ceylon Cinnamon.

Accordingly, Ceylon Cinnamon trademark is now official in Peru and Columbia-having completed trademark registration in both these markets -and EDB is now awaiting for certificates. EDB is also in the process of accessing Mexico market as well, through its Madrid registration process due to Mexico’s WIPO/Madrid membership in it. In fact, in 2012, Mexico was the topmost buyer of Ceylon Cinnamon for the fifth year in running since 2008.

In 2012, Sri Lanka’s Ceylon Cinnamon exports stood at $129.53 Mn, growing by 6.4% from 2011’s $121.18 Mn. In Y’12, the biggest buyer was Mexico followed by US, Peru, Columbia, and Ecuador.

Ceylon Cinnamon already received official certification in EU and US. Ceylon Cinnamon has been Sri Lanka’s leading spice unique in quality, and the way it is produced. It has global market monopoly of 90% in true cinnamon.

The Ceylon Cinnamon Brand Promotion Programme was launched by the EDB with the objective of differentiating ‘Ceylon Cinnamon’ from other low quality substitutes in the international market and under this programme the ‘Ceylon Cinnamon’ Brand and ‘Ceylon Cinnamon’ Logo were ceremonially unveiled by H.E the President Mahinda Rajapksa in parallel to the Presidential Export Award ceremony held in June 2011.

EDB now holds the ownership of ‘Pure Ceylon Cinnamon’ Trademark which was introduced to the world by the Sri Lanka government as the second national Brand for agriculture products after ‘Pure Ceylon Tea’.

Ceylon Cinnamon secures two more int’l trademarks

The Island - 28/02/2014

Mr. Bandula Egodage (Chairman/CEO, EDB)

Ceylon Cinnamon, which is Sri Lanka’s second global brand, has secured its trademark in two more leading markets-with one more country application in the registration process. "I commend the EDB’s Agro division for their efforts on this initiative" said Bandula Egodage (Chairman/CEO, EDB).

Chairman Egodage was addressing the monthly review meeting of EDB on February 27 when he was informed by EDB’s agro division of the latest development on Ceylon Cinnamon.

Accordingly, Ceylon Cinnamon trademark is now official in Peru and Columbia-having completed trademark registration in both these markets -and EDB is now awaiting certificates. EDB is also in the process of accessing Mexico market as well, through its Madrid registration process due to Mexico’s WIPO/Madrid membership in it. In fact, in 2012, Mexico was the topmost buyer of Ceylon Cinnamon for the fifth year in running since 2008.

In 2012, Sri Lanka’s Ceylon Cinnamon exports stood at $129.53 Mn, growing by 6.4% from 2011’s $121.18 Mn. In Y’12, the biggest buyer was Mexico followed by US, Peru, Columbia, and Ecuador.

Ceylon Cinnamon already received official certification in EU and US. Ceylon Cinnamon has been Sri Lanka’s leading spice unique in quality, and the way it is produced. It has global market monopoly of 90% in true cinnamon. The Ceylon Cinnamon Brand Promotion Programme was launched by the EDB with the objective of differentiating ‘Ceylon Cinnamon’ from other low quality substitutes in the international market and under this programme the ‘Ceylon Cinnamon’ Brand and ‘Ceylon Cinnamon’ Logo were ceremonially unveiled by President Mahinda Rajapksa in parallel to the Presidential Export Award ceremony held in June 2011.

EDB now holds the ownership of ‘Pure Ceylon Cinnamon’ trademark which was introduced to the world by the Sri Lanka government as the second national brand for agriculture products after ‘Pure Ceylon Tea’.

SL-Iraq trade talks begin in Baghdad

Daily Mirror - 27/02/2014

The latest Sri Lanka-Iraq Joint Committee for Economic Cooperation (JEC) Commenced February 25 in Baghdad, a statement from the Industry and Commerce Ministry said.

“Iraq is certainly an important market for us not only for tea but even for other prospective products. Similarly, there would be good opportunities for Iraq to promote its products using Sri Lanka’s potential,” said Industry and Commerce Minister Rishad Bathiudeen, making his opening remarks at the eighth session of Sri Lanka Iraq Joint Committee for Economic Cooperation (JEC) meeting in Baghdad, heading a 16-member delegation.

On its part, displaying an unprecedented interest, the Iraqi government was fielding an official team of more than 30 members that consisted representatives from such key Iraqi Ministries as Trade, Economic Relations, Transportation and Industry and Minerals. The Iraqi team at the Baghdad JEC session was led by Trade Minister Kheer-allah Hassan Babaker Muhammad.

Iraqi Trade Minister Babaker Muhammad said, “Iraq side is keen to share the experiences of Sri Lanka, particularly in the fields of investment promotion, free trade zones, financial and health sectors.”

According to the Commerce Department of Sri Lanka, the value of total trade between the two countries that stood at US $ 8.72 million in 2003 topped US $ 89.99 million in 2013.

Sri Lanka exported goods totalling US $ 89.80 million to Iraq and imported only goods worth US $ 0.19 million from Iraq during 2013. Tea has been a major export item to Iraq accounting for about 95 percent of Sri Lanka’s exports to Iraq, with an estimated 15,000MT of Ceylon tea being exported indirectly through Dubai, Jordan and Kuwait.

Minister Bathiudeen said, “The establishment of the Joint Committee for Economic Cooperation between our two countries in 1975, opened a new chapter in our cooperation for development and enhancing our relations in diverse fields covering trade, economic and technical cooperation. On bilateral trade, we observe that there is a very slow progress, which may be due to the prevailing circumstances.

There is a lot of renewed interest among the foreign investors in investment in prospective projects in different sectors. Sri Lanka’s highly literate skilled labour force, transparent investment laws guaranteed by the Constitution and the international agreements, have made Sri Lanka one of the most preferred investment destination among the international business community. I wish to take this opportunity to invite the Iraq business community to visit Sri Lanka and explore the opportunities available for them in their areas of interest.”

Iraq – Sri Lanka trade tops $90 million, up 80 per cent

Lanka Business Today - 26/02/2014

Bilateral trade between Sri Lanka - Iraq has reached $90 million, an 80 per cent increase, and the two countries are aiming to break new ground when the largest joint trade session has begun in Baghdad. OPEC’s second biggest oil power is also ready to channel its Basra Light Crude to Sri Lankan refineries.

”In the past Sri Lanka bought and refined our oil. You can buy our Basra Light brand of crude streams and we are ready to supply them to you as we are a top buyer of Ceylon Tea,” said a confident Ambassador of Iraq in Sri Lanka, Kahtan Taha Khalaf in Colombo last week.

Ambassador Khalaf made these observations during a meeting with Rishad Bathiudeen, Minister of Industry and Commerce of Sri Lanka on February 19. Also present on the occasion were officials of the Department of Commerce and Dr Ali Abdul Razaq Salah Al-Kuhlee, Assistant Commercial Attache, Embassy of Iraq in Sri Lanka.

Iraq is OPEC’s second biggest oil power after Saudi Arabia. According to the ministry, the value of total trade between the two countries that stood at $ 8.72 million in 2003 topped $ 89.99 million in 2013. Sri Lanka exported goods valued at $ 89.80 million to Iraq and imported only goods valued at $ 0.19 million from Iraq during 2013.  Tea has been a major export item to Iraq accounting for about 95% of the total exports to Iraq. It is also estimated that almost 15,000MT of Ceylon tea is being exported to Iraq indirectly through Dubai, Jordan and Kuwait.

“A can refine Basra light crude to more than 50%, even up to 60% here” said the envoy. Global oil industry related reports that showed Iraq’s Basra Light has now stabilized to around 30 (degrees) API density, also said that since 2013, Iraq has become very competitive in its oil supplies. Ambassador Khalaf however, did not discuss any pricing details of Basra Light with Minister Bathiudeen.

“We are also looking forward to strong participation at the Joint Economic Commission talks with Sri Lanka in Baghdad. We are planning to invite Iraqi business chambers and many of our officials for this session so that we can move bilateral business forward with Sri Lanka. We need to initiate double taxation avoidance on both sides” said ambassador Khalaf last week and added: “We are happy with your well-developed tourism-specifically, the medical tourism. More than 20,000 Iraqi’s go overseas annually for their medical needs and they will be very happy to come to Sri Lanka and benefit from your surging medical tourism facilities. They are comfortable with the six-hour flight to Sri Lanka. Please think of accommodating at least even 10% of them to Sri Lanka’s medical tourism. We are also in need of Sri Lankan trained medical personnel such as anesthetists, nurses, and physicians since they are good. We are ready to provide all facilities, food and tickets with good salaries - minimum salaries starting from $ 2,000 per month and even going to around $ 4,000!,” said the ambassador.

“Iraq is one of the biggest trade partners for Sri Lanka in the Middle East. This suggestion on Basra Light, among your other suggestions, is interesting and needs some study by us before any decisions. During the Joint Economic Commission (JEC) talks in Baghdad, your team can begin official discussions with us on this. I am also pleased to inform you that I am bringing one of the strongest Sri Lankan delegations ever, around 15 members, for next week’s eighth Joint Economic Commission Session in Baghdad. As per your request, we are looking to cover a wide range of issues to advance our cooperation-in aspects of trade including tea supplies and related shipping logistics, investment, financials, education, aviation, tourism, health and even man-power,” said the ambassador.

Since the Iraqi-Sri Lanka Joint Economic Commission was established in 1975, seven sessions have been held,-the last being in Colombo in October 2010. The 8th SL-Iraqi JEC session is now underway Baghdad beginning February 24 - one of the biggest bilateral trade rounds ever to take place involving both trade partners.

Lankan exporters invited to utilize Pakistan’s GSP Plus with EU

Daily Mirror - 24/02/2014
By Sashi Ratnayake

Pakistan’s High Commissioner to Sri Lanka Major General Qasim Qureshi made an open invitation to Sri Lankan exporters to utilize the current Generalized System of Preferences Plus (GSP) scheme Pakistan enjoys with the European Union (EU) and expand trade between the two countries through the existing free trade agreement (FTA).

“Pakistan’s new GSP plus scheme with the EU is an opportunity for Sri Lankan exporters. For that we should jointly explore whatever is possible within the rules and regulations of the trade concession,” Qureshi said during a discussion held at the National Chamber of Commerce, recently.

Pakistan was granted the GSP plus status by the end of December 2013 till the year 2017. The GSP Plus status will allow almost 20 percent of Pakistani exports to enter the EU market at zero tariff and 70 percent at preferential rates, enabling Pakistan to export more than US $ 1 billion worth of products to the international markets. It is said that only the textile industry would earn profits of more than Rs1 trillion per year.

Meanwhile, Pakistan’s High Commission First Secretary Hasan Zaigham joining the discussion explained Pakistan’s position as the third largest consumer of tea in the world.

He pointed out though Sri Lanka exports tea to Pakistan, only elite Pakistani citizens could afford to enjoy the exported tea while the majority of the middle class drinks cheap Indian tea. He urged Sri Lankan tea exporters to look at the possibility of revising the prices to cater to the growing middle class of Pakistan.

According to Zaigham Pakistan by 2012 had a population of 179.2 million people who extensively use motor vehicles. During his presentation he made a strong case for Lankan tyre exporters to contemplate on entering Pakistani tyre market.

Throughout the discussion the Pakistani officials repeatedly mentioned about the interest some of the Pakistani companies have upon entering the sugar industry of Sri Lanka, while explaining higher demand for fruits such as cashew and pineapple in Pakistan showing the new areas the two countries could work upon.

Sri Lanka and Pakistan bilateral trade currently stands at US $ 440 million and it is expected that the trade will grow over US $ 1 billion in the coming few years.