Apex body for Sri Lankan food processing sector mooted

Daily Finance Times - 03/04/2014

A  Sri Lankan delegation comprising officials from the Government, academia and private sector gained valuable insights in food processing, standards, food safety, product diversification and export potentials during the recently-concluded study visit to Thailand.

The delegation discussed extensively on the lesions that could be learned and possible way forward for the Sri Lankan food processing industry, the role of different stakeholders of the SME in food and beverage sector of Thailand and studied the current status and success factors of Thailand’s fruit and vegetables industry and export market.

The study tour facilitated by GIZ-SME Development Program provided an opportunity to the participants to visit some of the leading food processing facilities in Thailand, including testing laboratories and organic food processors’ and exporters.

The delegation also met representatives from National Innovation Agency, National Bureau of Agricultural Commodity and Food Standards to discuss on possible adaptation methodologies and new international standards that contributed towards opening of new doors for businesses in the food processing in Thailand and subsequent growth.

One of the participants, Mala Tennakoon, Senior Deputy Director of Sri Lanka Standards Institution (SLSI), sharing some of the key points of learnt during the study visit, said that the Thai Government and all other private sector stakeholders are working towards a common goal of making Thailand the ‘Kitchen of the World,’ which is a concept introduced by the Thai Government.

Thailand has established a National Food Committee under the Thailand National Food Committee Act of 2008.This Committee acts as an apex body which coordinates the activities of 11 Ministries and 30 other National Agencies involved in Food control management activities.

In order to strengthen the food control system implemented, it mainly focuses on four strategic areas namely food safety, food security, food quality and food education. She stressed on the fact that similar structure would be implemented in Sri Lanka as well to facilitate good coordination among the different organisations involved in food control monitoring activities.

From a standards perspective, she also mentioned that certifications like THAI GAP (Good Agricultural Practices) can be initiated by SLSI, as this will help immensely to increase the agricultural exports.
Tennakoon also observed that the research activities within the Thailand food sector is commercially driven with the objective of providing better solutions to food sector businesses and initiatives have been taken to commercialise research findings, with the help of National Innovation Agency.

Dr. Ilmi Hewajulige, Director of the Industrial Technology Institute (ITI) – Food Technology Section said that the ITI equivalent in Thailand, Thailand Institute of Scientific and Technological Research (TISTR) plays a significant role in conducting research and development, transfer technology; as well as to design food production process, process prototype, and equipment prototype which are used for processing agricultural products into health food, export food and supplementary food.

“In order to facilitate innovation, technical support is provided during initial stage of project development after case-by-case evaluation and 75% of total expenses up to Rs. 20 million for maximum three years as project financing,” said Dr. Ilmi.

Representing the private sector, Secretary of the Sri Lanka Food Processors Association (SLFPA) Mervin Gonawela said this study visit provided a valuable opportunity to benchmark a world class parallel association in Thailand, National Food Institute. As an institution working closely with the food processors in Sri Lanka, SLFPA believes it can draw valuable experiences through future collaborations to facilitate the development of the food sector through empowerment and knowledge transfer and by doing so upgrade its capacity to match to standards set by NFI.

The Sri Lankan delegation comprised participants from Industrial Technology Institute (ITI), Sri Lanka Standards Institution (SLSI) , Sri Lanka Export Development Board (EDB), Ministry of Traditional Industries and Small Enterprise Development, Ministry of Finance and Planning, Batticaloa District Chamber of Commerce, Industry and Agriculture, Department of Rural Industries, Eastern Province, Sri Lanka Food Processors Association (SLFPA), Uwa Wellassa University of Sri Lanka, Eastern University of Sri Lanka, University of Jaffna and  sister project of SME Development, the Vocational Training – North.

The Sri Lanka Food Processors Association recently signed an agreement with GIZ-SME Development, to facilitate training and capacity building of the SME in the food processing industry in Sri Lanka. This joint program will introduce innovative approaches and good manufacturing practices to enhance the quality and safety of food processing sector as a whole. Development and translation of the training material, with international good practices and training of the local trainer pool is within this framework. Through  the above capacity building initiatives, the SME engaged in the food processing sector and their employees  will have access to well developed, internationally recognised certificate courses in the areas of  thermal processing, food safety standards (HACCP), hygiene (sanitation and GMPs), cool chain management and operations, post-harvest activities, proper packaging techniques, risk management in production, and finance related topics.

Through the Sri Lankan-German SME Development Program, implemented in cooperation with the Ministry of Finance and Planning, GIZ aims to support a cohesive policy framework that enables SME to grow in an inclusive and eco-friendly manner, enhance competitiveness of SME due to technology transfer and innovation, improve access to finance for SME, and enable SME to take advantage of green technologies and maintain nature’s capital for sustainable growth.

Pure Ceylon cinnamon logo awards on Monday

Daily News - 03/04/2014
By Indunil Hewage 

The issuing of license for eligible exporters to use the Pure Ceylon cinnamon logo on cinnamon packs will be held at Sri Lanka Export Development Board (SLEDB) auditorium on 07th Monday.

The SLEDB recently requested pure Ceylon cinnamon manufacturing companies in Sri Lanka that wish to use pure Ceylon Cinnamon Lion Logo on cinnamon packs to forward completed applications in respect of each product design to the Sri Lanka Export Development Board.

Applications were called from companies eager to use Pure Ceylon Cinnamon Lion Logo on the cinnamon packs. The companies who are eager to use the pure Ceylon cinnamon lion logo on cinnamon packs will have to obtain prior approval from the Export Development Board.

Approval of the Cabinet has been granted for the Sri Lankan Export Development Board to hold the ownership and custodianship of the name ‘ Ceylon Cinnamon’ on behalf of the people of Sri Lanka. The SLEDB is in the process of promoting Ceylon Cinnamon as an international brand in the global market.

The pure cinnamon logo can be used only on Ceylon Cinnamon packs containing 100% pure Ceylon cinnamon manufactured in Sri Lanka. This will be made on the recommendation of relevant government institutions based on the test reports and field observations. SLEDB initiated this process to streamline use of Lion Logo in cinnamon packs.

Sri Lanka is the world’s largest producer and exporter of Cinnamon accounting for 85% of world market share. 

AWARENESS SEMINAR/WORKSHOP ON FRUITS & VEGETABLES FOR THE EXPORT MARKET-NCP

The North Western Provincial office of the Sri Lanka Export Development Board, successfully conducted the awareness seminar/workshop on fruits & vegetables for the export market on 24th March 2014 in Anuradhapura with the participation of 115 fruits & vegetable farmers in North Central Province. The programme was organized by NWP-EDB with the assistance of Department of Agriculture, National Plant Quarantine Service and Lanka Fruits & Vegetable Producers, Processors & Exporters Association.

The main objective of conducting this seminar was to increase the capacity of Fruits & Vegetable farmers in the North Central Province by way of enhancing Technical/Market awareness and facilitating linkages between farmers and exporters in order to develop consolidated supply base of quality fruits & vegetables for exports from Regions.

At this seminar, an Assistant Director of Department of Agriculture took part as a resource person & delivered a presentation on Cultivation of quality fruits & vegetables for the export market & Pre/Post harvests technology. Also an Agriculture Officer of Plant Quarantine Unit/ Colombo-Port made aware participants concerning the involvement of Plant Quarantine Service in Exporting fruits & vegetables.

Moreover, Mr. Channa Madawela from Nidro Supply (PVT) Ltd., a leading Fruits & Vegetable exporter in Sri Lanka representing the Lanka Fruits & Vegetable Producers, Processors & Exporters Association addressed the gathering to make farmers aware on Regular problems face by exporters when supplying Fruits & Vegetables for the export market. He also emphasized about the significance of quality requirements of supplying fruits & vegetables for the export market. The association expressed that there is a massive demand for quality Passion Fruits from Sri Lanka in the international market & encouraged farmers by giving the assurance of market availability.

Therefore, this event offered certainly an excellent opportunity for framers in North Central Province as well as to achieve EDB’s objective of conducting the seminar. The NWP-EDB is intending to facilitate to establish linkages between framers & exporters & provide necessary trainings with the assistance of Lanka Fruits & Vegetable Producers, Processors & Exporters Association to develop consolidated supply base of quality fruits & vegetables for the export market from Regions as an upcoming activity of this programme.

Indian CEO Forum fosters economic ties and showcases investment opportunities in Sri Lanka

Daily Finance Times - 02/04/2014

The Indian CEO Forum (ICF) held its AGM on Friday, 21 March, at the Taj Samudra Hotel, Colombo. Governor of the Central Bank of Sri Lanka Ajith Nivard Cabraal was the Chief Guest while High Commissioner of India Y. K. Sinha was the Guest of Honour.

A large number of invitees including  Ministry of Industry and Commerce Secretary Anura Siriwardena, NDB Chairman Sunil G. Wijesinha, Commercial Bank Chairman Dinesh Weerakody, People’s Leasing CEO D.P. Kumarage, Sri Lanka Export Development Board Chairman Bandula Egodage and CEOs of multinational companies were also present at the event.

ICF, launched in July 2013 by Minister of Economic Development Basil Rajapaksa, was formed in recognition of the significant growth of Indian private sector investments in Sri Lanka. ICF is a registered body and its membership is constituted by Indian investments in Sri Lanka, Indian heads of MNCs and Sri Lankan companies.

The objectives of the Indian CEO Forum is to promote and contribute to the economic growth of Sri Lanka through Indian investment, safeguard and strengthen existing economic cooperation, foster new economic ties between India and Sri Lanka, provide an open forum for the business leaders of Indian origin employed with Indian multinationals and Sri Lankan business/commercial organisations in Sri Lanka. ICF endeavours to showcase investment opportunities in Sri Lanka to potential new investors from India.

ICF President Sanjay Tiwari outlined the following focus areas for the next financial year in his communication:

• Facilitating Government efforts in providing safe drinking water in areas affected by CKD
• Facilitating greater number of tourist arrival from India
• Diabetes care
• Generation of employment – by organising a job fair

During the AGM, the existing Board of ICF consisting of Sanjay Tiwari, Executive Director and CEO – Piramal Glass Ceylon Plc; Kiran Redkar, CEO – Ultra Tech Cement; Umesh Gautam, CEO – Lanka Ashok Leyland; Subodh Dakwale, Managing Director – Lanka IOC; Kishore Reddy, CEO – Platinum Realty Investments; T.S. Prakash, CEO – Revlon Lanka; and Biju Jacob, Country Head – ICICI Bank, Sri Lanka were re-elected for the year 2014-15.

Massive progress in trade and cultural relations

Sinha in his remarks outlined the massive progress made in trade and cultural relations:
“Actively partner with us to further strengthen the economic relations of the two countries by encouraging more Indian companies to invest in various sectors in Sri Lanka and likewise guide Sri Lankan entrepreneurs willing to do business in India or invest in India. The two countries will benefit by enhancing the existing synergies. Many of the Indian CEOs have adopted Sri Lanka as their second home. Together with their economic and commercial operations, they are also at the front in promoting people-to-people contact.

“The Indian CEO Forum would serve as a symbiotic link that binds our two countries and will further enhance our economic engagement in terms of mutually beneficial trade and investment, thereby creating a win-win situation for both countries. India and Sri Lanka enjoy a vibrant and growing economic and commercial partnership, with both trade and investment expanding greatly in recent years. The cornerstone of this relationship has been the India Sri Lanka Free Trade Agreement which was signed in 1998 and was implemented with effect from 1 March 2000. The FTA has led to the emergence of a genuinely vibrant economic relationship and made for a quantum jump in trade, investment and economic cooperation between India and Sri Lanka.

“After the coming into effect of the FTA, Sri Lankan exports to India have seen a more than 10-fold increase from US$ 49 million in 1999 to US$ 543 million in 2013. Looking at imports from India, they have increased from US$ 512 million in 1999 to US$ 3186 million in 2013. The FTA has thus proved to be a real engine of growth for bilateral commercial interaction. According to Sri Lankan Customs data, the bilateral trade amounted to US$ 3.73 billion in 2013.

“On the investment front, top Indian companies have displayed great interest in Sri Lanka, investing in the country across sectors such as infrastructure, manufacturing, services, and construction. The cumulative FDI approvals for Indian investments stand about US$ 1 billion since 2003. Nearly US$ 2 billion worth of FDI has been committed by Indian companies for the next five years or so. Sri Lankan companies too are finding opportunities in the large Indian markets, leveraging FTA provisions.

“The bilateral economic cooperation has diversified across multiple areas of engagement, including trade in goods and services, tourism, infrastructure, education, science and technology, and agriculture. Air connectivity has gone up and almost one-fifth of tourist arrivals in Sri Lanka are from India.  The Colombo Port is a major trans-shipment hub for cargo originating in, or destined for, India. It has been estimated that nearly 70% of Colombo Port’s transhipment business is from India.

“The way forward for this dynamic economic relationship was charted during the visit of Anand Sharma, Minister of Commerce, Industry and Textiles, Government of India, to Sri Lanka in August 2012, when both sides decided to take several key steps to further deepen trade and investment relations. Proposal focusing on increasing Sri Lanka’s export capacity with promotion of manufacturing of products like automobile parts, engineering products and pharmaceuticals with Indian investment and forging linkages across the production and supply chains of the two countries were put forward. We have also set for ourselves an ambitious target of doubling bilateral trade to reach US$ 10 billion in next three years.”

Cabraal commends Sri Lanka’s “excellent” Sri Lanka-India relationship
Governor Cabraal at the outset indicated his “pleasant surprise that as many as 49 Indian business heads were part of the ICF and contributing to the growth of the Sri Lankan economy”.

Sharing his vision for the next three years he said: The vision for the Sri Lankan economy envisages a growth of about 8% per annum on a sustainable basis, and a per capita income of over US$ 4,000 before 2016… through stable and good governance, controlling inflation and investing in ‘stars of the future’.”

“Sri Lanka introduced the new ‘stars’ while the existing ‘cash cows’ were yet performing and delivering. Just like the apparel sector has grown in 30 years from about US$ 20 million industry to a US$ 4 billion industry, the new ‘stars’ have the potential to grow as much, or substantially more, over the next few years. The values of maritime and aviation activities are growing substantially. Tourism: From US$ 400 million in 2005 to US$ 1.6 billion in 2013; expected to grow to US$ 3.1 billion by 2016. IT/KPO/BPO: from US$ 83 million in 2005 to US$ 600 million in 2013; expected to grow to US$ 2,000 million by 2020. Transportation services (maritime and aviation included): from US$70 million in 2005 to US$ 1,900 million in 2013; expected to grow to US$ 6,000 million by 2020.”

Cabraal stated that it is a matter of satisfaction that the past four years have been among the only five years of high growth + low inflation years in the post-1977 period. He listed out the challenges that Sri Lanka will have to deal with as it goes forward:

• Improve productivity levels of our existing activities
• Ensure that Sri Lanka does not fall prey to the “middle income trap” which ensnared several countries. 
• Maintain political stability
• Ensure that poverty remains low,
• Keep unemployment at low levels, and
• Ensure balanced regional development takes place.

“To realise this vision on a sustained basis, India as one of Sri Lanka’s key overseas partners, can do much… Sri Lanka’s relationship with India and Indian business has been an excellent one. Total trade between Sri Lanka and India amounted to US$ 3.73 million in 2013 compared to US$ 673 million in 2001, which was the first full year the India-Sri Lanka FTA came into force. Sri Lanka’s exports to India which were at US$ 72 million in 2001 have increased to US$ 543 million in 2013. The ISFTA was signed on 28 December 1998.  It was enforced with effect from 1 March 2000 and this has benefited businesses from both countries, as elaborated by the High Commissioner.”

“The Sri Lankan people have greatest respect and love for India and its people,” said Cabraal, quipping that the only time that Sri Lanka does not wish India all the best is when Sri Lanka plays cricket against India!
The Governor added: “Business entities and personalities can be very helpful in improving and helping to develop relationships as well. Politicians usually follow business interests. Business and politics are closely-linked. Economic activity cannot flourish if a country is politically unstable.”

He opined that the ICF could be an important bridge to improve India-Sri Lanka relationships further and Sri Lanka has been generous with its economy for entry by Indian companies. Elaborating on what role the ICF could play in helping achieve his vision, he said: “There are two basic ways whereby Indian businesses could contribute towards realising the Sri Lankan economic vision. One, by participating actively in numerous business opportunities. Two, by contributing to the strengthening of the political relationship between the two countries, by proactively engaging the Indian political leadership to view Sri Lanka as a friend and ally.”

Lanka to participate at SAITEX fair in Johannesburg

Daily News - 01/04/2014
By K A Aleem 

Sri Lanka Export Development Board in collaboration with the Sri Lanka High Commission in Pretoria, South Africa is organising Sri Lanka’s participation at the South African International Trade Exhibition (SAITEX) to be held from June 22 to 24, 2014 at the Gallagher Convention Centre in Johannesburg, South Africa and Afro- Sri Lanka Business Forum to be organised in coincide with SAITEX2014.

SAITEX is the most popular and the region’s largest multi sector international trade fair organized in South Africa for over 20 years. SAITEX serves as a strategic gateway to entire African region.

The fair is co-located with South Africa’s largest food and beverage industry event. “Africa big l” and together attracts many exhibitors from all over the world.

Afro-Sri Lanka business forum will be organised in association with Sri Lanka High Commission in Pretoria, Sri Lanka. Exporters will be participate in this fair. 

Lanka aiming to be a top 10 apparel exporter by 2020: Minister Rishad

Daily Finance Times - 01/04/2014

• SL starts first modern footwear and leather training centre
• 2013 apparel exports a record $ 4.3 b: Rishad
• SLITAs engineering setup upgraded with hi-tech mechatronics
• 2013 footwear and leather exports up by 63%: Rishad
• New technology from Germany, Japan and Singapore

Minister Bathiudeen at the leather and footwear industry training unit and the upgraded engineering workshop at the Sri Lanka Institute of Textile and Apparel (SLITA), Ratmalana.

In the aftermath of latest record apparel earnings, Sri Lanka is now entertaining bigger apparel dreams. “Our internationally recognised apparel sector has shown strong performance, and has earned revenues of $ 4.3 billion in 2013. President Mahinda Rajapaksa now wants us to be among the world’s top 10 apparel export countries by 2020,” said Minister of Industry and Commerce Rishad Bathiudeen on 21 March.

Minister Bathiudeen was addressing the inauguration event of the newly established Leather & Footwear Industry Training Unit and the upgraded Engineering Workshop with mechatronics at the Sri Lanka Institute of Textile and Apparel (SLITA) on 21 March in Ratmalana.

The latest SLITA facilities are constructed exclusively with Treasury funding of $ 153,000 (Rs. 20 million), and are the only such industry training centres in Sri Lanka. The Leather and Footwear Centre will train new student intakes at vocational levels on design and manufacturing. The Engineering Workshop with mechatronics is a high-tech venture, equipped with ultramodern machinery from Germany, Japan and Singapore. Automatic pattern sewing machines, electronic button hole and bar-tag machines, double needle lockstitch machines, electronic pneumatic training kits for motion and sensor trainings are some of the latest tech trainings that the students will undergo at SLITA Engineering Workshop.

In 2013, SLITA recorded highest income at $ 1.05 million, which is an increase of 44%, compared to 2012. 92% of this total income came from training, testing and consultancy services of SLITA. This institution has no less than 185 training programs with a total trainee strength of 3,430. Total training income also increased by 34% compared to 2012. SLITA’s 56-strong lecture panel of which 18 are qualified at the Masters level is yet another benchmark in the industry.

Also present on the occasion were Secretary Ministry of Industry and Commerce Anura Siriwardena and SLITA Director General D.N.S. Kuruppumullage

“Today, our Ministry’s Sri Lanka Institute of Textile and Apparel is taking a major step, in its on-going, contribution to Sri Lanka apparel sector. We are commencing a footwear and leather unit and the new, engineering building with high tech as a key event of the on-going development efforts of this institution. SLITA, operating under my Ministry caters to the industry in training, testing, consultancy and technical services. We are pleased, to say that SLITA has a world class testing lab which is internationally accredited and is certified with ISO 17025 and 9001 standards,” said Minister Bathiudeen, and added: “SLITA is only one example of our government’s efforts, to support the apparel industry. Most notably and on behalf of SLITA, I wish to thank the President for the triple deductions provided in the last budget for research and innovation carried out within apparel businesses. This has encouraged the apparel sector greatly for its, strong performance especially in 2013.  “Our internationally recognised apparel sector has earned record revenues of $ 4.3 billion in 2013. This is a historic record for us and shows that we are now moving towards the apparel target of $ 10 billion by 2016 as set by President Mahinda Rajapaksa. Our President also wants us to be among the top 10 apparel export countries of the world by 2020. In 2013 our apparel sector has also entered the G4 manufacturing levels for the first time in partnership with a global multinational, the PVH Corporation. I commend our committed apparel sector for leading our exports performance. I am also thankful to the Treasury for the assistance to upgrade our apparel training facilities.”

Speaking on Lanka’s Footwear and Leather exports, Minister Bathiudeen said: “My Ministry is also in the frontlines of footwear and leather sector development with many initiatives, the latest being this new unit at a cost of $ 153,000 (Rs. 20 million). I am pleased to say that our footwear and leather exports also have shown a record growth trend. In 2012, exports from this sector stood at $ 30 million, and has registered a remarkable 63% increase by 2013, to $ 51 million.”

Sri Lanka’s textile & garment exports soar 23.4% in Jan’14

fibre2fachion.com - 27/03/2014

The exports of textiles and garments from the island nation of Sri Lanka surged by 23.4 percent year-on-year in the first month of 2014, according to a press release on ‘External Sector Performance – January 2014’ issued by the Economics Research Department of the Central Bank of Sri Lanka.

Textiles and garments, which is the main contributor to the growth in industrial exports from Sri Lanka, grew by 23.4 percent to US$ 412 million in January 2014, compared to exports of $333.9 million made during the same month last year.

“The EU and the US continued to be the major markets for textiles and garments of Sri Lanka, representing around 85 percent of total garment exports during the month,” the press release said.

The data also shows a notable increase of 38.3 percent in exports of textiles and garments to non-traditional markets, reflecting greater diversification of markets in the industry, the statement said.

Despite the strong growth in textiles and garment exports, imported inputs into the industry declined by 4.7 percent to $193.6 million during the period under review, as against imports of $203.2 million made during the corresponding month of 2013.

“The continuing decline in imports of textiles and textile articles has been due to the usage of built up raw material stocks, backward integration and production of items at the higher end of the value chain,” the statement said.

In 2013, Sri Lanka’s earnings from textile and garment exports grew by 13 percent year-on-year to $4.508 billion, while its value of imports declined by 9.7 percent year-on-year to $2.045 billion.