Sri Lanka shines at 2nd China-South Asia Expo in Kunming

Daily FT - 24/06/2014

The Sri Lanka Export Development Board (SLEDB) in collaboration with the Embassy of Sri Lanka in Beijing organised the Sri Lanka Pavilion at the 2nd China-South Asia Expo in Kunming, China from 6 to 10 June with the participation of 135 Sri Lankan companies, displaying and promoting Sri Lankan product sectors such as gems and jewellery, tea, batik, handicraft, coir products, Ayurvedic products and giftware.
Minister of Industry and Commerce Rishad Bathiudeen ceremonially opened the Sri Lanka Pavilion at the expo and delivered the keynote address at the 9th China-South Asia Business Forum held on the sidelines of the 2nd China-South Asia Expo.

In his speech, the Minister highlighted the enormous potential for further promotion of trade and investment between Sri Lanka and China, before a large gathering of business entrepreneurs representing South Asia and the South East Asia region.

Deputy Speaker of Parliament Chandima Weerakkody, representing the Government of Sri Lanka, participated in the Opening Ceremony of the 2nd China-South Asia Expo. At a meeting with the Chinese Vice Premier Wang Yang, on the sidelines of the Kunming Expo, the Deputy Speaker sought the continued support and cooperation of China for further expansion of trade and commerce between the two countries.
Vice Premier Wang Yang, while commending Sri Lanka’s active participation at the expo, expressed the hope that the proposed FTA between the two countries would contribute greatly towards the expansion of bilateral trade between China and Sri Lanka.

Also on the sidelines of the 2nd China-South Asia Expo, the 6th Session of the Joint Committee on Trade and Economic Cooperation between China and Sri Lanka was held in Kunming on 7 June. Ministry of Finance and Planning Secretary Dr. P. B. Jayasundera led the Sri Lanka delegation and Vice Minister of Commerce Gao Yan led the Chinese delegation. A wide range of issues relating to Sri Lanka-China trade and economic cooperation was discussed by the two sides at the meeting.  Ambassador of Sri Lanka to China Ranjith Uyangoda, Secretary to the Ministry of Industry and Commerce Anura Siriwardena, Director General of Commerce R.D.S. Kumararatne, EDB Executive Director Dr. Yousuf Kachchi Maraikkar and senior officials from the Ministries of Finance and Planning and Industry and Commerce, the Department of Commerce, the Embassy of Sri Lanka in Beijing and the Consul of Sri Lanka in Chengdu participated in the events.

Dutch push for Lanka’s hi-tech exports

Asian Tribune - 23/06/2014

From far right: M.K.S.K Maldeniya (EDB’s ICT Sector Director), Joost vander Kooij and Onno Roukens (the CBI professional consultants from Netherlands) nod in agreement with Bandula Egodage (Chairman/CEO of EDB) as he addresses interactive session “Website Enhancement and Online Marketing ITO/BPO” on 19 June organised by the EDB for Sri Lankan software manufacturing and export firms.

Sri Lanka is leveraging ICT exports to achieve its $20 B goal of 2020. And a new support initiative by the Netherlands is set to elevate Lankan software exporters to latest tech developments. “The government is highly focused on ICT sector as a forex earner and export driver. We cannot ignore ICT if we are to achieve any progress” said Bandula Egodage (Chairman/CEO of EDB) on 19 June in Colombo.

Chairman Egodage was addressing the two day-hands on interactive session “Website Enhancement and Online Marketing ITO/BPO” organised by the EDB for Sri Lankan software manufacturing and export firms. The first ever such hands-on initiative moved by EDB was facilitated by Netherlands’ CBI (Centre for the Promotion of Imports from developing countries)-an agency of the Ministry of Foreign Affairs of the Netherlands. Joost vander Kooij and Onno Roukens, the two CBI professional consultants who specially arrived from the Netherlands to train the companies in the session helped the more than 25 Lankan participants of the session on a one-to-one basis. Among the ICT giants taking part were John Keells Computer Services, hSenid Business Solutions, 99X Technologies, Cyber Concepts, SewEasy, E-Nowave, InfoMate, Calcey Technologies, Pyxle, Allion Technologies, Dinota Information Technologies, Sanje, i-Context Content Convergence, Four Corners, Akio Information Technologies, Data Management Systems, Lanka Communication Services, E Marketing Eye, and Perfect Business Solution Services.

“We earned $ 719 Mn from this sector in 2013. The government is highly focused on ICT sector as a forex earner and driver of exports” said Chairman Egodage and added: “Even Mahinda Chinthana stresses the importance of ICT for our way forward in exports, specially as we work towards $ 20 Bn exports goal by 2020. We cannot ignore ICT if we are to achieve any progress. Communication as well as ICT/BPO sectors are cross cutting and are always evolving. In Sri Lanka, we have all plus points to develop ICT sector –most importantly, brilliant brains and pools of knowledge. Today’s initiative by EDB involving no less than international support is part of our strategy to maintain software sector in par with international standards.”

According EDB, Sri Lanka recorded $ 719 Mn of communication and computer exports in 2013 -a growth of 6.8% over its 2012 exports of same. The share of Communication and Computer exports was 6.4% of 2013’s total exports which stood at $ 11.1 Bn.

“CBI is currently working in 20 emerging markets helping them in many areas-including IT outsourcing and market intelligence” said CBI’s Onno Roukens, and added: “Some non-IT sectors helped by CBI are agro sector such as cut flowers and foliage to natural ingredients for pharmaceuticals, consumer products such as apparel, domestic furniture and household utensils, industrial products such as automotive parts, electronic components and medical devices. IT support is part of our services such as IT outsourcing, BPO and tourism.”

“Instead of providing financial support to other countries, CBI provides training instead” said CBI facilitator Joost vander Kooij, and added: “We have understood that Sri Lanka software professionals to be well skilled in what they do. Our training and info on the dynamics of global marketplace will help them considerably.”

Export earnings increase in April,rupee stable

Daily News - 23/06/2014

Sri Lanka’s external sector strengthened further in April 2014, with continued foreign currency inflows in the form of earnings from exports, tourism, workers’ remittances, as well as inflows to the financial account, the Central Bank said on Friday.

The trade deficit continued to narrow during the first four months of 2014 as a result of healthy growth in exports. The contraction of the trade deficit and higher inflows to services and income accounts contributed to reducing the current account deficit. These developments, together with inflows to the financial account have resulted in a higher surplus in the BOP by end April 2014, compared to the corresponding period of 2013,the Bank said.

On a year-on-year basis, earnings from exports in April 2014 increased by 9.4 per cent to US dollars 762 million, while expenditure on imports declined by 5.3 per cent to US dollars 1,444 million. Accordingly, the trade deficit contracted by 17.7 per cent to US dollars 682 million. The cumulative trade deficit for the first four months of 2014 contracted by 12.1 per cent, as the growth in export earnings of 16.9 per cent outpaced the 2.6 per cent increase in import expenditure. The growth in earnings from exports was led by improved performance in industrial exports which grew by 8 per cent, year-on-year, in April 2014 to US dollars 559 million. Industrial exports led by the earnings from export of textiles and garments, increased by 22.5 per cent, contributing 94 per cent to the total increase in exports. Industrial exports accounted for more than 73 per cent of total exports.

During the month, earnings from export of garments to the EU and to the USA increased by 22.3 per cent and 21.2 per cent, respectively, while a notable increase of 50.5 per cent was observed in export of garments to non-traditional markets such as China,

Hong Kong, Japan and Russia reflecting further diversification of export markets.

Earnings from the export of machinery and mechanical appliances and leather products also contributed to the growth in exports of industrial products. Exports of machinery and mechanical appliances, comprising of electrical and electronic equipment such as transformers, static converters, accumulators and home appliances, increased by 20.7 per cent while exports of leather products increased by 86.6 per cent owing to a more than two fold increase in footwear exports. On the other hand, the export of petroleum products, gems, diamonds and jewellery, transport equipment declined in April 2014. Healthy performance in tea and coconut product exports mainly contributed to the growth in agricultural exports by 13.7 per cent to US dollars 200 million.

Export earnings from tea increased by 9.8 per cent to US dollars 117 million as a result of the increase in both the price and volume of tea exported. The average export price of tea increased by 2.8 per cent, to US dollars 5.01 per kg in April 2014 from US dollars 4.87 per kg in April 2013, while export volumes increased by 6.8 per cent, year-on-year.

Three-day ‘Israel-Sri Lanka Business Forum’ on 25 June

Daily Finance Times - 23/06/2014

The Sri Lanka Embassy in Israel in collaboration with the Export Development Board in Sri Lanka, Ministry of External Affairs in Sri Lanka, LR Group in Israel and the Israel-Asia Chamber of Commerce in Israel, has organised a ‘Business Forum’ for the Sri Lankan and Israeli business communities from 25 to 27 June, in order to strengthen bilateral, commercial, trade, cultural and other relations between the two friendly nations.

Main topics to be dealt with will include tourism, technology, water, energy, medical, apparel, employment, agriculture, green house cultivation, diary, fish, flora and fauna, diamonds, gems, jewellery, rubber, hospital, pharmaceuticals, highways, construction and any other topics by the prospective delegates based on their requirements.

The program for the day one will commence with the inauguration at Sharon Hotel, Hertziliya and sponsored by LR Group. Topics covered will be ‘Sri Lanka-Israel relations and way forward’ by Deputy Minister of External Affairs and Chief Guest Neomal Perera; ‘Economy in the New World Order’ by Deputy Governor of the Central Bank Dr. Nandalal Weerasinghe, and ‘Sri Lanka as One of the Best World Destinations for Investment’ by Board of Investment Chairman Dr. Lakshman Jayaweera.

The program for day two organised by the Israel-Asia Chamber of Commerce, Israel will comprise the introductory note and greetings by Sri Lankan Ambassador in Israel Sarath Wijesinghe;
opening note and welcome address by Israel-Asia Chamber of Commerce President Ran Cohen, ‘Sri Lanka-Israel relations and way forward’ by Deputy Minister Perera and ‘Economy in the New World Order’ by Dr. Weerasinghe.

The event will also include networking and business meetings with Israeli companies and entrepreneurs. Organisers have also arranged afternoon site visits to Holon Institute of technology (HIT) and Israeli Diamond Centre (IDC), Ramat Gan as well as visits to historical, religious and technical places sponsored by LR Group.

There will be over 40 participants from various disciplines and sectors from Sri Lanka and they will interact with their Israeli counterparts at both events and at the hotel (one-to-one and collectively). Arrangements are also being made for a major trade mission to Sri Lanka from Israel in September. Ambassador Wijesinghe said the forum is a continuation of the initiatives taken by the Embassy of Sri Lanka during the historical visit by President Mahinda Rajapaksa to the State of Israel and meetings with the high-end business community, trade mission to Sri Lanka organised by the Embassy of Sri Lanka in Israel with the Israel Sri Lanka Chamber of Commerce in the State of Israel, trade mission to CHOGM led by the Sri Lanka Ambassador in Israel with the active involvement of EDB, the Ministry of Trade and Commerce in Sri Lanka and continuous interactions of the Israel-Sri Lanka business communities with public and private sector participation in both Sri Lanka and Israel.

Trade between Sri Lanka and Israel stood at $ 172 million in 2013, of which 72% is accounted by diamonds. Sri Lankan companies participating are Airwing Tours Ltd., Araliya Group of Companies, C.R. Exports Ltd., Dareen Holidays Ltd., E-W Information Systems Ltd., Horizon College of Business and Technology Ltd., Jay Health Foods Ltd., Jay Sea Foods Processing Ltd., Jetwing Travels Ltd., Justin Morgan Recruitment Migration Centre, Lanka Sathosa Ltd., Leader Travels & Tours Ltd., Ministry of Cooperatives and Internal Trade, Ministry of Higher Education, OLS Foods Ltd., Paranthan Chemical Company Ltd., Shiran Garments Ltd., SPJ Holdings Ltd., Sri Lanka Bureau of Foreign Employment, Sri Lanka Institute of Information Technology, The Finance Company Plc.,  Union Chemicals Lanka Plc, and Western Agri Business Ltd.

Sri Lanka's Fish Export up by 20% in 2014 1Q

news.lk - 19/06/2014

Fish and fishery product sector plays an important role in Sri Lanka’s Social and economic life.  The Sector contributes about 2.7% to country’s GDP.  End of the civil unrest detained three decades in the country, fisheries sector has a significant scope to increase the level of contribution through exploiting high seas for tuna fishing & value addition.

Sri Lanka’s main fishery export products include tuna, fresh chilled and frozen form, shrimps & prawns, crabs and lobsters.  Other than the above shark fins, fish maws, beche-de-mer, cuttle fish & squid, sprats are also exports mostly to the Asian markets.  United Kingdom is the main market for Sri Lankan tuna followed by France, Italy, Netherlands, Germany etc.

During the last four years Sri Lanka has been gradually increasing its share in the international market.  Accordingly  fish exports during the first quarter of 2014 has shown an increase of 20% thereby  earning foreign exchange of Dollars 95.68 or Rs 12,384 Million (Billions 12.384).

During the first quarter of the year 2010, the income of fish export had been Rs. 5,710 million and in the year 2011, it has got increased to Rs.6,850 million. Similarly, in the first quarter of 2012, the income from fish export had been Rs.9,009 Million and during the first quarter of 2013, it had increased up to Rs.10,187 Million.

Similarly, during the last three years, the annual fish export had got increased systematically. That is during the year 2011, the income derived from fish export had been Rs.21,876 Million. In the year 2012 this amount had got increased up to Rs.26,363 million and during the year 2013, it had got increased to Rs. 31,792 Million.

The Minister of Fisheries and Aquatic Resources Development, Dr.Rajitha Senaratne has taken further steps to improve this position and it is expected to earn Rs. 40,000 Million by end of year 2015. By improving this position further, by year 2016, it is planned to earn Rs.50,000 Million which will get recorded in history, as the highest income, ever recorded.

Similarly the daily fish consumption per head had been increased from 30 grams up to 41.5 grams. We have a target of increasing this by the end of 2014 up to 50 grams and by the end of 201, up to 60 grams. By winning this target, ourselves and our country would be able to eradicate malnutrition completely, said Minister Senarathna. On the above basis we have played our role on behalf of President Mahinda Rajapaksa by earning a large amount of foreign exchange, added the Minister.

SL apparel industry in a global context and future fortunes

Daily Mirror - 17/06/2014
By Dr. Arosha Fernando

The Sri Lankan apparel trade today is well renowned around the world to be the most cutting-edge and innovative when it comes to apparel manufacturing.

With a very long history of manufacturing in the island and throughout the challenges which this industry has faced to this day, the garment manufacturing  stands much stronger than it has been ever before where the exports from this industry within a year increased by 11 percent (which was the biggest increase annually in 2013 compared with initial years) and by end November 2013 the exports earnings from this industry in Sri Lanka stood at US $2.876 billion, which is a substantial amount of foreign exchange bought into the country by a single industry.

Comparatively compared with our competing countries in this trade which are China, India, Bangladesh and upcoming countries such as Vietnam, Cambodia our apparel industry is quite small. However due to the fact with the change of times and economies as China is now considered as a much developed  country compared to 20 years back, China now has a feel to move into more high-end industries such as IT, pharmaceuticals, auto industry, science etc.

Accordingly the costs of production through the times now have increased dramatically and for China right now and for the future moving into more high-end industries would be much more beneficial for them to sustain their fast growing GDP and the remaining apparel manufactures due to the better economic position where the Chinese population have better disposable income and with a high population (bigger internal market) have focused to cater to their own home market rather than exports. India follows the same suite as China.

Sri Lanka has always held the belt for upholding commitments, quality and needle work of products, compliant and state of the art manufacturing practices, with professional and skilled work force and finally now a safe and stable environment for any global retailer to have a strong footing to set up offices and work closely with the apparel manufactures to export the best quality on a ethical and compliant platform which Sri Lanka apparel trade has held continuously by giving the global retailers the brand protection which now is the key in this business for them.


Changing fortunes of competitors
Although the costs would be lower in the short term, in the long term our competitors such as Bangladesh which has proven to be expensive due to under performances and quality issues and with under compliances and unethical terms of trade the brands have been much tarnished for working in Bangladesh due to heavy media follow up after the recent mentioned fires which killed hundreds of workers, hence now for global customers to protect their branding and business in the long run are seeing as a key safe heaven to set up strong commitments with manufactures as from the inception to the boom of the apparel industry.

Bangladesh can be considered as Sri Lanka’s main competitor in apparel and as the only source of foreign exchange for Bangladesh with vast amounts of labor, low cost, vertical supply chains and plus GSP has been a very challenging fore for the Sri Lankan apparel industry. Bangladesh has much benefit and initially by global apparel chains saw Bangladesh as a gold mine to boost better profitability by taking advantage of their low production costs.

However due to current serious and critical issues in Bangladesh such as recent fires in factories which killed hundreds of workers, commitments towards performance, quality, compliance and the general break down of basic apparel practices towards the work force, and due to this lot of the main global retailers are now shying away from Bangladesh and moving towards Sri Lanka.


Sri Lanka better positioned
Our apparel industry is strongly committed to ethical manufacture and sustainable development assuring the industry’s commitment to ethical working conditions, free of child labour, free of forced labour, free of discrimination and free of sweatshop practices. Further, our apparel industry’s efforts to provide employment and harness the rural talents of the country by setting up factories across Sri Lanka under the Rural Empowerment Concept has made a significant impact to our economy which has been recognized and acknowledged by the global apparel chains.

Thus China, India coming out of garment exports and Vietnam, Cambodia being quite new into the trade and Bangladesh apparel trade facing critical issues and concerns, the key country now to meet their requirements on the platforms which they require is Sri Lanka. Accordingly now Sri Lanka is in an ideal position to aggressively take advantage of this fact that now as good capacity becomes increasingly short and with the amount of global apparel business, global customers will be compelled to pay premium prices for Sri Lankan apparel capacities.

By this change in the apparel environment, Sri Lanka apparel industry can do further to give more employment and higher foreign exchange to the country and sealing a place on the apparel map for the years to come.


Noteworthy local contributions
Another significant contribution made by leading apparel export companies such as Tristar Apparel Group by setting up factories for rehabilitated ex-terrorist after the 30 decade conflict in Sri Lanka where the conflict claimed thousands of innocent lives and bought unimaginable suffering to the lives of innocent Sri Lankan’s who were living in the Northern part of the country.

It was a very much natural feeling for Tri Star Apparel Group who have been in the business for over 30 decades and where the company initiated ‘The Town to Village’ concept and to support the government’s commitment by setting up such investments in the war torn area of Thambalagamuwa in Trincomalee district and to give employment to over 700 people from that area where their lives and their families had been effected from the conflict.
Today the unit has a well known reputation for exporting 100  new born wear to the UK market exclusive manufacture for selected UK retailers. This is a great achievement by the work force and commitment and support given by the government to be a leading export unit within such a short period of time and to create employment for hundreds of innocent people in that affected area and in turn those supporting hundreds of families.

Conclusion
In conclusion, the business community of Sri Lanka should focus more and work towards expanding the apparel industry to a different height in light of the current developments in the global context along with our existing position in the global map by taking the advantage to become the number 1 foreign revenue generator to Sri Lanka by overtaking of foreign employment sector which stands first at the moment.

(Dr. Arosha Fernando has a distinctive professional background covering 20 years in management. Currently Dr. Arosha is the Chairman of Verazo Apparel Exports Pvt Ltd.  Dr. Arosha is a renowned scholar, holding five University Degrees from Australia’s 2 leading Universities. He holds a Doctorate in Business Administration (DBA) from the Australian Graduate School of Entrepreneurship (AGSE) at Swinburne University, Melbourne, Australia and a Bachelor of Business (B.Bus.) Degree, double major in Marketing and Human Resource Management from the Faculty of Business at the same University)

Sri Lankas' Participation at SIAL - 2014

Sri  Lanka  Export  Development  Board  in  collaboration  with  the  Consulate  General  Office  in Toronto, Canada organized the Sri Lanka’s participation at SIAL Canada 2014. . Five Sri Lankan food &  Beverages exporting companies participated in the programme.

• Ceylon Biscuits Ltd.
• Consolidated   Business   Systems (Pvt.) Ltd. 
• HJS Condiments Ltd. 
• Wichy  Plantation  Company  (Pvt) Ltd  
• Tea Talk (Pvt) Ltd.
• Food & Nature (Pvt.) Ltd. (observer) 

The total value of the confirmed orders exceeded 400,000 US Dollars as at  31st  May 2014.

Canada, Morocco, USA, New Zealand, Algeria confirmed their orders on following products,

• Biscuits
• Virgin Oil
• Fruit Juice
• Coconut Milk
• Virgin Coconut Oil
• Tea
• Cinnamon and Other Spices

List of countries having orders under Negotiation

• Guyana
• USA
• Canada
• Morocco
• Germany
• Mexico
• China

Basilur Tea Canada, allied to its Sri Lankan firm Basilur Tea, has clinched the top award in SIAL Canada 2014.  Basilur's  herbal  tea  product  "Fruit  Infusions"  received  the  highest  award  called 2014  Top  -10  Product  Award  at  SIAL  Canada.  This  is  considered  by  many  food  industry specialists as a Very rare achievement since Basilur has reached the TOP 10 twice within last three years. 

Basilur Tea is one of the many products that we promote in Canada and it is one of our flagship products and ranked among many of our success stories in Canada.