Lesotho to begin economic ties with tea, rice imports

Lanka Business Today - 05/05/2014

The only country in the world to be surrounded by another country and also described as Africa’s Switzerland, is now to initiate multi-faceted bilateral ties with Sri Lanka.

“We can begin our bilateral trade with Ceylon Tea exports to Lesotho. Then we can proceed to agriculture cooperation” said an upbeat Bothata Tsikoane, the New Delhi based High Commissioner of Lesotho for Sri Lanka.

The Lesotho envoy made these observations while meeting Rishad Bathiudeen, Minister of Industry and Commerce of Sri Lanka on 25 April at the Export Development Board offices in Colombo during his first courtesy call made on Minister Bathiudeen.

“We want to establish bilateral cooperation with Sri Lanka in a more formal way and in a multi-faceted way. Then we want to see about the strategic hub outlook of Sri Lanka so that we can make use of it. We can begin our bilateral trade with Ceylon Tea exports to Lesotho. Then proceed to agriculture cooperation,” said the ambassador.

“Our country is described as the Switzerland of Africa due to its snow-capped mountains and scenery therefore it is a key tourist attraction in the region. We have a stable economic outlook, and though Lesotho industry sector is not as diversified as Sri Lanka’s, our garment industry plays a key role in the economy. In fact, it’s the dominant industry for us. We like to send our garments to South and East Asia too. Since we import most of our food needs from South Africa, including rice, we can absorb Sri Lankan food exports, especially rice. We can achieve these by firstly establishing bilateral cooperation in a more formal way,” ambassador Tsikoane stressed.

According to the Department of Commerce, Sri Lanka’s trade with Lesotho is almost minimal with a total trade $ 0.03 million (only) in 2012. More than 75% of food requirements of Lesotho are imported to the country, with only around 25% of the requirement produced inland.

Responding to ambassador Tsikoane, Minister Bathiudeen said: “Sri Lanka is the emerging strategic hub located in South Asia and in 2013 we have shown record apparel earnings despite difficult international market conditions. Lesotho is a promising virgin market for Sri Lanka’s exports and our exporters will be glad to make their entry which I and my Ministry can facilitate.

"Our apparels are readily snapped up by top global brands. We invite Lesotho’s apparel firms to invest in our reputed apparel sector, partner with it in JVs and use our hub positioning to reach the Asian markets. I and my Ministry are ready to extend our fullest support to investors from Lesotho. We are also ready to supply you with renowned Ceylon Tea. As we are now a rice exporter, I am pleased to say that Lesotho can import our rice as well. We already export rice to several African countries - Kenya, Somalia, Ethiopia - and also to Dubai. We are open to agricultural and other types of cooperation with Lesotho and I believe that such initiatives can be followed successfully once ties are more formalised,” said the minister.

Both ambassador Tsikoane and Minister Bathiudeen also discussed other potential areas of cooperation to strengthen bilateral understanding.

Sri Lanka exports up 5.4-pct in February, imports fall

Lanka Business Online - 05/05/2014

Sri Lanka's exports rose 5.4 percent in February 2014 from a year earlier, with apparel exports up 6.6 percent, while imports fell amid weak credit growth, official data showed.

In the first two months of the year exports were up 13.9 percent to 1,739 million US dollars, the Central Bank said.
Agricultural exports rose 15.3 percent to 201.2 million US dollars with tea up 11.7 percent to 115.6 million US dollars.

Textile and garment exports were up 6.6 percent to 396.2 million US dollars with export to the USA up 8.8 percent and to the EU up 8.7 percent.

Imports fell 6.2 percent to 1,344.7 million US dollars. Consumer goods rose 7.2 percent to 223.8 million US dollars and intermediate goods fell 4.7 percent to 827.4 million US dollars.

Fuel imports were a slight 0.6 percent up to 420.9 million US dollars.

Textile and textile articles were down 6.4 percent to 152.5 million US dollars despite higher apparel exports, which the central bank said was due to local manufacture of inputs.

Investment goods fell 17.7 percent to 292.6 million US dollars in February, with building materials down 21.8 percent to 81.8 million US dollars and transport equipment down 53 percent to 39.6 million US dollars.

The trade deficit contracted 20.7 percent to 503.7 million US dollars.
In the first two months of 2014, exports rose 13.9 percent to 1,739 million US dollars from a year earlier, imports rose just 1.1 percent to 2,998.6 million US dollars and the trade gap contracted 12.5 percent to 1,259 million US dollars.

Sri Lanka's trade deficit is triggered when foreign exchange earnings outside of exports such as through worker remittances, tourism or even foreign borrowings trigger imports.

High volumes of exports also trigger more imports when the proceeds are spent.

Imports usually fall when credit growth is weak and not all foreign receipts are spent within a given period, resulting is build ups of domestic liquidity and foreign reserves.

Sri Lanka's credit growth has slackened after a credit bubble fired a balance of payments crisis in 2011/2012. In February private credit fell in absolute terms.

Fadna Cinnamon Tea gets certification of Pure Ceylon Cinnamon

Daily Finance Times - 05/05/2014

The Fadna Cinnamon Tea, produced and distributed by Food and Nature Company was recently awarded the Pure Ceylon Cinnamon Quality certificate by Sri Lanka Export Development Board. This certification which is awarded only for highest quality export products is granted on the recommendation of a committee of experts appoined by the SLEDB. Here Minister of Industries and Commerce Rishard Bathiudeen awards the certificate to the Marketing Manager of the Food and Nature Company, Udara Mangala at a ceremony at the SLEDB

Certificate Course in Packaging Technology - 2014

Sri Lanka, Bahrain launch business forum

Colombo Page - 30/04/2014
Photos by Sudath Silva

Sri Lanka and Bahrain Tuesday inaugurated the Bahrain-Sri Lanka Business Forum at the headquarters of the Bahrain Chamber of Commerce and Industry (BCCI) in Manama.

A large gathering of prominent business leaders from both Sri Lanka and Bahrain participated in the Forum that consisted of business-to-business meetings and a visit to the Bahrain International Investment Park.

Minister of External Affairs Prof. G.L. Peiris, Bahrain's Minister of Industry and Commerce Dr. Hassan A. Fakhro, Minister of Industry and Commerce Rishad Bathiyutheen and the Second Vice Chairman of Bahrain Chamber of Commerce and Industry Jawad Alhawaj delivered speeches at the forum.

Two discussion sessions were held during the Forum. While the first discussion has focused on the business opportunities available in Bahrain for the Sri Lankan business community, the second session discussed trade, tourism and investment in Sri Lanka, Bahrain News Agency said.
Chairman of Sri Lanka Export Development Council, Bandula Egodage, Director General of Sri Lanka Tourism, Dr. D. S. Jayaweera, and Director of Investment Board of Sri Lanka, K.D. Lawrence have made presentations at the session.

Addressing the gathering, Industry and Commerce Minister of Bahrain, Dr. Hassan Fakhro, recalled that agreements and memoranda of understanding have been signed between the two countries over the years.

The Bahraini Minister noted that the bilateral non-oil trade with Sri Lanka has increased from approximately US$9 million in 2006 to some US$30 million by 2011.

The Minister affirming that the visit of the Sri Lankan President to Bahrain is a great opportunity to invigorate mutual business relations highlighted the promising opportunities available in Bahrain for Sri Lankan investors and areas of potential cooperation, particularly in foodstuffs, building materials, tourism, textiles, garment manufacturing and banking.

There are approximately 20 Sri Lankan companies operating in various fields, Dr. Fakhro has confirmed.

Noting the contributions of Sri Lankan community to Bahrain's socio-economic development, the Minister has commended the excellent Bahraini-Sri Lankan relations and welcomed foreign investors in a suitable investment environment.

The two countries have signed an Avoidance of Double Taxation Agreement, a Memorandum of Understanding on Economic, Trade and Technical Cooperation signed in 2009, an Agreement of Cooperation with the Federation of Chamber of Commerce and Industry of Sri Lanka (FCCISL), an Agreement for the Establishment of a Joint Business Council with the FCCISL, as well as a Cooperation Agreement between BCCI and Sri Lanka Chamber of Commerce, which was signed in 2007.

Deputy Minister of Labor and Labor Relations Sarath Weerasekara and Sri Lanka's Ambassador to Bahrain Mr. Anura Rajakaruna also participated in the event.

Legitimacy 'ensuring Bahrain's success'

Gulf Daily News - 30/04/2014

Legitimacy is the single all-encompassing characteristic that makes Bahrain business-friendly, Industry and Commerce Minister Dr Hassan Fakhro said yesterday.

Speaking at the opening of the Bahrain-Sri Lanka Business Forum at Beit Al Tijjar, Dr Fakhro said legitimacy meant that Bahrain embraced the rule of law, and authorities strived to be the best at what they do, whether it be in terms of laws and regulations, domestic and international policies, or simply in the way that individuals were respected irrespective of ethnicity and the principles of a truly secular state were upheld.

"It is this legitimacy that has underpinned Bahrain's rise as an important financial centre, and helped in avoiding the contagion felt across the globe during the financial crisis," he said.

"It is this that will ensure our future growth and stability, and will continue to encourage international investors, including more we hope from Sri Lanka, to invest with us in a myriad of opportunities both in Bahrain and using the kingdom as a gateway to the Middle East and North African region."

The opening of the forum was also attended by Finance Minister and Minister in charge of Oil and Gas Affairs Shaikh Ahmed bin Mohammed Al Khalifa, Labour Minister Jameel Humaidan, Sri Lankan Ambassador Anura Rajakaruna, Bahrain Chamber of Commerce and Industry (BCCI) second deputy chairman Jawad Al Hawaj and a number of businessmen and businesswomen.

It was held within the framework of Sri Lankan President Mahinda Rajapaksa's state visit to the kingdom.

Dr Fakhro said a number of agreements and memoranda of understanding have been entered into between the two countries over the years, including a Double Taxation Avoidance Agreement; a memorandum of understanding on economic, trade and technical co-operation, signed in 2009; an agreement of co-operation with the Federation of Chamber of Commerce and Industry of Sri Lanka (FCCISL): an agreement with FCCISL for the establishment of a joint business council, as well as a co-operation agreement between BCCI and the Sri Lanka Chamber of Commerce, signed in 2007.

"Bilateral non-oil trade has increased from around $9 million in 2006 to $30m by 2011 and is a good indication that these agreements have been bearing fruit," he said.

"But I am certain that much more can be done to increase our mutual trade and investment, and this visit of President Rajapaksa provides us with a golden opportunity to launch a new effort to invigorate our relationship.

"There are many sectors and sub-sectors which may have promising opportunities for Sri Lankan investors, and areas of potential co-operation particularly in foodstuffs, building materials, tourism, textiles, garment manufacturing and banking," he added.

Sri Lanka's External Affairs Minister Prof G L Pieris and Industry and Commerce Minister Rishard Bathiudeen also addressed the forum as well as Mr Al Hawaj.

The forum also saw the signing of a memorandum of understanding between the BCCI and the Women's Chamber of Industry and Commerce (WCIC) of Sri Lanka. It was signed by Mr Al Hawaj and WCIC chairwoman Dr Sarosh Dubash.

Abdulla Yousef Fakhro and Sons Group chairman Dr Esam Fakhro, Industry and Commerce Ministry Under-Secretary Osama Alarrayedh, Central Bank of Bahrain executive director for banking operations Shaikh Salman bin Isa Al Khalifa, and GPIC president Dr Abdulrahman Jawahery took part in a discussion 'Opportunities for Sri Lankan business in Bahrain'.

The second discussion was about trade, tourism and investment in Sri Lanka with participation from Sri Lanka Export Development Council chairman Badula Egodage, Sri Lanka Tourism director-general Dr D S Jayaweera, and Sri Lanka Investment Board director K D Lawrence.

The double taxation between both countries has been eliminated, free trade agreements, almost similar tax regimes are pointers to excellent climate for growing bilateral trade," Shaikh Ahmed said.

"The private sector will now have to play its role - building the bridges and taking the relation forward," he added.

Sri Lanka seeks Bahraini investment in the hospitality sector, as the country needs to add 35,000 rooms by 2016, Mr Bathiudeen said. Bahrain's strength in the information technology and e-commerce could be used to benefit in Sri Lanka, he added.

Sri Lanka’s Basilur Tea wins top North American food award

Daily FT - 28/04/2014

• Third SIAL Canada triumph for Basilur Tea
• Latest award is for herbal infusion to Ceylon Tea
• 2013 tea exports at $ 1.5 b

In the wake of record exports in 2013, Pure Ceylon Tea has reported yet another achievement, with Basilur Tea Canada, allied to its Lankan firm Basilur Tea, clinching the main award at North America’s top food and beverages trade show this year.

“Basilur’s herbal tea product ‘Fruit Infusions’ received the highest award – the 2014 Top-10 Product Award – at the SIAL Canada expo. This is considered by many food industry specialists as a very rare achievement since Basilur has reached the Top-10 twice within three years,” said Basilur Tea Canada Director Rohan Perera on Thursday.

Previously Basilur won the Top-10 Most Innovative Products of Canada Award in 2012 followed with a Selection Award reaching Top-50 in North America in 2013. The SIAL 2014 packed 767 exhibitors from 43 countries and more than 14,000 visitors.
The SIAL expo is one of the world’s largest network of food-industry shows, with a presence on four continents with 7,500 exhibitors. SIAL Canada is one of the two most important food industry shows in North America.

Ontario-based Basilur Tea Canada is well-known for promoting Pure Ceylon Tea in Canada through its innovative packaging methods and diversity of flavouring, aimed specifically at the Canadian palette.
The latest award was presented to Basilur Tea Canada in Montreal at a gala celebration in the presence of over 500 dignitaries including government ministers, heads of government departments, heads of multinational corporations and the media.

“We were featured in over 20 printed and electronic media channels, generating a lot of publicity. While these achievements have helped us to enter into many market segments in the mainstream, they have also helped other products in our portfolio to gain market access. Hence we are looking into identifying more innovative and competitive products to add to our portfolio. We conduct extensive market research, create professional marketing programs and work closely with manufacturers to develop products to meet the required standards both in quality, packaging and presentation,” Director Perera added.

In 2013, Sri Lanka tea exports recorded 319 mkg, reaching its highest-ever earning of $ 1.558 b. Russia, Iran, Turkey and Iraq were the leading Ceylon Tea buyers.