With first official Ceylon Cinnamon batch active, Lanka positions for $ 1b spice exports

Daily Finance Times - 08/04/2014

As Sri Lanka’s first batch of exporters successfully captured their licences to officially flavour the world with Sri Lanka’s second global brand yesterday, the country recommitted to $ 1 billion in spice and cinnamon exports by 2020.

“Today, nine Sri Lankan cinnamon export firms are empowered by this initiative. Together, these nine firms claim more than 25% of our annual cinnamon export values. We are aiming at $ 1 billion in spice and cinnamon exports by 2020,” said Minister of Industry and Commerce Rishad Bathiudeen yesterday, addressing the ‘Inaugural issuance of Pure Ceylon Cinnamon brand licenses to Lankan exporters event’ at the EDB Auditorium.
In yet another important industry support initiative in the tradition of Export Development Board for Lankan exporters, for the first time, nine Sri Lankan cinnamon export firms qualifying to export cinnamon using ‘Pure Ceylon Cinnamon brand license’ were awarded license certificates by Bathiudeen at the event.
The qualifying exporters in the first batch were A Baur & Co Ltd., Casa Canela Ltd., Dtriangle Ltd, Food & Nature Ltd., G.P. De Silva & Sons International Ltd., Intercom Ltd., International Commodity Traders Ltd., Mohksha Ltd. and Rathna Producers Cinnamon Exports Ltd.


“Today, I congratulate the first batch of qualifying exporters,” said Bathiudeen. “This effort focuses on Sri Lanka’s second global brand, Pure Ceylon Cinnamon. Today’s initiative aims at developing this foreign exchange earner to become a strong contributor to our rising export earnings thanks to the committed vision of President Mahinda Rajapaksa. In fact, our export earnings in 2013 have increased by 6.3% year-on-year to a strong $ 10.3 billion, compared to $ 9.7 billion earned in 2012.  We are also aiming at $ 1 billion spices and cinnamon exports by 2020. Annually, Sri Lanka produces more than 15,000 metric-tons of true cinnamon.  We are pleased to note of the continuous increase in our cinnamon exports by 150 committed Lankan exporters.

“In 2013, our cinnamon exports stood at $ 132 million increasing from $ 130 million in 2012. The 2013 value is in fact a 78% increase from 2009 export value that stood $ 74 million. For the fifth year, Mexico became the topmost buyer of Ceylon Cinnamon, with $ 61 million of orders in 2013. United States, Peru, and Colombia were our other top cinnamon buyers. I am pleased to note that among them, Peru’s Ceylon Cinnamon orders increased by a strong 32% in 2013. In the same year, cinnamon orders from Bolivia increased by 28%. Today, nine Sri Lankan cinnamon export firms are empowered by this initiative. Together, these nine firms claim more than 25% of our annual cinnamon export values. I am pleased to observe that to select these firms the EDB has followed a stringent evaluation process. I am given to understand that the EDB has carefully proceeded through more than 25 steps to select today’s qualifying exporters. Today’s presentations from EDB will give you more info. These successful cinnamon exporters would find today’s licenses enabling them a comparative advantage in the demanding global marketplace. This licensing also highlights the main aspects of Ceylon Cinnamon and differentiates Cinnamon from the cheap substitute Cassia. We believe that this logo, which carries internationally accepted quality assurance, is the best marketing technique to promote cinnamon in our target global markets.”

“When it comes to maintaining high quality of our cinnamon, it is not negotiable,” said EDB Chairman and CEO Bandula Egodage, making a presentation on the cinnamon industry in Sri Lanka. “Cinnamon volumes contribute to 1.15% of our total exports. Sri Lanka exported $ 132 million of cinnamon in 2013 while the world demand stood at $ 301 million. This shows the demand levels for cinnamon. One of the main functions of Pure Ceylon Cinnamon logo is being the differentiation of it from the cheap substitute Cassia through our unique characteristics. The Cabinet has entrusted the EDB to hold ownership of ‘Ceylon Cinnamon,’ ‘Sri Lankan Cinnamon’ and ‘Sri Lankan Kurundu’. The EDB has established 20 GMP certified Cinnamon Processing Centres in Galle and Matara Districts as well as a Cinnamon Training Academy to assist the industry to overcome labour constraints.”

Bilateral trade with Germany hinges on three basics – quality, consistency and volumes

The Island - 05/04/2014
By Steve A. Morrell

From left: Bandula Dissanayake, Secretary, NCCSL, Tilak Godamune, Senior Deputy President, NCCSL, Dr. Jurgen Morhard, Sujeewa Samaraweera, Deputy President NCCSL, Bandula Egodage, Chairman, Export Development Board and Gerhard Truemper, First Secretary, Embassy of Germany. (Pic by Saman Ranaweera)

German Ambassador Dr. Jurgen Morhard said that bilateral trade with Germany could be expanded. Although trade with Sri Lanka could be pursued to reach higher levels, it is imperative that exports should be of high quality.

Germany, he said was constantly looking for quality with their trade partners and goods and services that form bi-lateral trade segments would have to achieve such production levels.

He was addressing last week’s conference convened by the National Chamber of Commerce of Sri Lanka (NCCSL) to promote bi-lateral trade with Germany.

Chairman and Chief Executive, Export Development Board, Bandula Egodage said Germany was one of Sri Lanka’s main trade partners, but he conceded that the bilateral segment of such trade was currently that Germany was assisting Sri Lanka in training and improving technological support.

Bi lateral trade with Sri Lanka was not a recent phenomenon but an ongoing circumstance that did see improvement, he noted. "Value addition was also crucial for trade participation".

Ambassador Morhard urged that market trends prevailing in Germany be understood by Sri Lankan entrepreneurs; and that goods and services exported to German capitals should have the stamp of quality. He said quality and adherence to consistency was of crucial importance for prospective trade with Germany.

Germany was importing tea from Sri Lanka, but not in accordance with higher volumes. Additionally, health properties of drinking tea were now accented to improve consumption.

A journalist suggested that it was time the German people stopped drinking beer, and concentrated on tea. The room erupted with laughter.

Expansion of trade to include greater volumes of tea imports would meet with what the Ambassador said was important — notably volumes quality and consistency of supply.

On a remark that of all products exported in volume to other countries, Ceylon Tea already a worldwide brand of prestige was outstanding and would fit basic German demands, Dr. Morhard agreed that Ceylon Tea was consistently good, but the German habit of drinking coffee was quite strong.

He urged that the marketing aspect of the tea industry be intensified and then Germany would drink more tea.

Germany was more a coffee drinking country, and tea consumption was considered an old fashioned drink, particularly enjoyed by older people who have the time to imbibe in tea drinking.

He said expansion was envisaged, but promotion of Ceylon Tea was lagging behind. Although the UK was the main tea market, Germany also imported rubber based products and garments.

The garments trade had picked up because of improved production standards. This was confirmed by a German trader who was present. Siddalepha had also found markets in Germany and their sales had progressed. But, there was no confirmation that supplies had expanded.

The Ambassador also said that tourism was supported quite intensely and indicators were that further influx of visitors from Germany would be improved over the next few years.

EDB initiates first Internet of Things session

Daily News - 04/04/2014

As the consumer end of digital convergence in the country continued to develop, Sri Lanka has officially begun assessing the promise of the "next big thing" in digital frontier-and Sri Lanka's first Advanced Electronics Design Centre is now on the cards. "This is the first ever initiative for Sri Lanka's ICT sector on the emerging "Internet of Things". There is no doubt that this advanced and novel concept will be useful for everyone" said Sujatha Weerakoone Director General-EDB recently. Weerakoone was addressing the first ever IoT session held in Sri Lanka, organized by the Sri Lanka Export Development Board (EDB) .

Global IoT market value and and stake is estimated to surpass $ $14 trillion (CISCO Corp estimates, 2013) in the next decade and Sri Lanka's ICT services, software exports and BPO/KPO sectors are well poised to cater to this highly promising sector, considered as the 'next big thing.'

Currently, two firms, WSO2 and Zone24X7, both headquartered in US but have operations in Sri Lanka, have become the prime movers of IoT related processing here. Zone24X7, a third party end to end design house, is California headquartered, and has advanced product engineering and R&D facilities in Sri Lanka. 

Kithulaka Waruna exhibition and trade fair

Daily FT - 05/04/2014
– Pix by Kithsiri de Mel

‘Kithulaka Waruna’ an exhibition and trade fair got off the ground yesterday at Sudharshi Hall Colombo 7. The exhibition showcases a range of Kithul products from the 18 districts where Kithul is cultivated. The fair is organised by the Ministry of Traditional Industries and Small Enterprise Development, IDB, ITI, NERD, SMS, Forest Department, Export Agriculture Board and PDB. The exhibition will go on till 6 April

Pure Ceylon cinnamon logo awards on Monday

Daily News - 04/014/2014

The issuing 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 next 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. 

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.