Sri Lanka takes first step aiming $20B Export target by 2020

news.lk - 07/07/2014

Sri Lanka in a bid to achieve its $ 20 B export target by 2020, handed over on July 01, the task of producing an initial way forward blueprint by August to an international consultancy firm.

“Today we are launching the first step of EDB’s Strategic Plan creation which aims to achieve $ 20 Bn by 2020. Hilmy’s enormous experience and expertise will definitely enhance the total process of EDB in a positive way” said Bandula Egodage (Chairman/CEO, EDB) addressing the session on July 01..  He further said, " We also thank VEGA USAID for the contribution towards this initiative. We all know that our national target is $ 20 Bn by 2020 but there is a big mismatch-our current export strategic plan ends in 2015 and there is a strategy gap from 2015-2020; We are launching today’s initiative to bridge this gap and draw the plan till 2020 to complete this in a professional and a focused way.”

Also present on the occasion were the selected consultancy team of Bahrain based MTI Consulting led by its CEO Hilmy Cader, Sujatha Weerakoone (DG-EDB), Dr Yousuf Marikkar (ED-EDB), and various Directors and top personnel of export product sectors as well many heads of EDB Departments. EDB, realising the need for the service of a Consultant who is highly knowledgeable and well conversant with the export development process to formulate its Corporate Plan/Strategic Plan, sought the support of USAID VEGA Facilitating Economic Growth in Sri Lanka Project (VEGA FEG SL). USAID agreed to provide technical and financial assistance to formulate the Corporate Plan/Strategic Plan 2015-2020 for the EDB.

Accordingly, with the concurrence of the Minister of Industry & Commerce Rishad Bathiudeen and the EDB, the team headed by Hilmy Cader from Bahrain based MTI Consulting was selected by VEGA FEG Project for the consultancy.  The consultancy fee is to be borne by the VEGA-FEG SL Project of USAID.

According to MTI CEO Cader, the international management consultancy MTI has more than 510 client engagements with operations across Asia & the Middle East and networked across  America, Africa and Europe. MTI CEO Cader aims to complete the EDB process mapping and come up with a blueprint by August 2014 provided the operating conditions and environments stay unchanged.

According to the EDB, Sri Lanka’s 2013 annual exports stood at $ 11.1 Bn, rising by 6.7% from 2012’s $10.4 Bn.

Hashemite Kingdom renews trade, wants to re-activate JC right away

Asian Tribune - 02/07/2014

Ambassador Hassan Al Jawarneh (Delhi based Ambassador of Hashemite Kingdom of Jordan to Sri Lanka-left) meets Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on 01 July in Colombo.

The Hashemite Kingdom wants to renew its trade with Sri Lanka-with no less than a Joint Commission meet at its end. “Let us now get really practical. It is time to activate 2007 Agreement and start vigorous bilateral trade. We are open to all suggestions from Sri Lanka” said a keen Ambassador Hassan Al Jawarneh (Delhi based Ambassador of Hashemite Kingdom of Jordan to Sri Lanka) on 01 July in Colombo.

Ambassador Jawarneh was addressing Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on 01 July during his courtesy call on Minister Bathiudeen at EDB. According to the Department of Commerce, Sri Lanka’s trade with Jordan has considerably increased over the years. The total trade which stood at $ 26.19 Mn in 2002, has increased to $ 44.50 Mn in 2013. The balance of trade has been in favor of Sri Lanka. Sri Lanka’s major export item to Jordan is tea, contributing to more than 81% of Sri Lanka’s total exports to Jordan. Sri Lanka is the largest tea supplier to Jordan. Jordan is also fourth largest buyer of tea bags from Sri Lanka. Other Lankan export items being coconut, cashew nuts, sewing thread and pepper. Three Sri Lankan firms-MAS, DIP Apparels, and EAM Maliban Textiles Jordan - are already successfully operating their plants in Jordan. On the other hand, in 2013, Jordan itself has invested US $ 0.287 Mn in Sri Lanka. Sri Lanka is also a key human resource supplier to Jordan-more than 40000 Lankan expatriate workers are currently employed in the Kingdom.

“We signed the new bilateral Trade and Economic Cooperation Agreement in 2007 replacing previous agreement of 1965. Let us now get really practical. It is time to re-activate 2007 Agreement and start vigorous bilateral trade. The last JC meeting was held in Colombo in 2008. We are open to all suggestions from Sri Lanka including trade expansion, B2B delegations, and even trade fairs” said Jawarneh and added: “The last Joint Commission meeting was held in Colombo and it’s now time for you to come to the Kingdom of Jordan for the next Joint Commission meeting for which we invite you, preferably during this year. We can start the exchange of regular business delegations along with the JC re-activation. We are also well known as a supplier of fertiliser and related resources such as phosphates. We invite Sri Lankan agro importers to avail of our abundant supplies.”

“We have multiple agreements with the Kingdom of Jordan. We too feel that it is time to renew trade vigorously-in fact our trade with Jordan is lesser in comparison to our trade with other Middle Eastern countries-the current bilateral trade volumes at $44 Mn shows the existence of huge unrealised potentials between the two countries” said Minister Bathiudeen responding to Ambassador Jawarneh,andadded: “Low cost fertiliser supplies from Jordan can help our agro sector as well. I also view that it is time for the follow up of JC since 2008 been a long time. We look forward to wider exports from Sri Lanka beyond tea, which is our main supply to Jordan. I am pleased to note that our firms operating in Jordan have shown successful manufacturing outcomes. We look forward to arrange a strong trade delegation to Jordan which could also cover the Joint Commission sessions.”

On 01 July, both Ambassador Jawarneh and Minister Bathiudeen also delved into other aspects of cooperation between both countries.

INTRODUCING AND IMPLEMENTING FAIR TRADE TO THE CRAFT SECTOR

The EDB recently held a workshop in Batticaloa to introduce the Fair Trade Concept to the Craft sector in the Eastern Province. The workshop was attended by around 40 participants representing giftware, lifestyle and handloom products.  The workshop was conducted by Mr. Paul Myers, Expert on Fair Trade from U.S.A and there was a lot of interest shown by the companies /individuals present.

 

This workshop was held as part of a programme implemented by the EDB to introduce and implement Fair trade to the craft sector in Sri Lanka with the objective of utilizing Fair Trade (FT) as a marketing Concept/tool to promote Sri Lankan Craft products globally.


Fair Trade (FT) has been identified as one of the tools for the sustainable economic development of the world and defined as an alternative approach for conventional international trade.  FT labeling is seen as a tool to enable sustainable development and empowerment of disadvantaged producers and workers in developing countries.

‘Lanka handlooms special’-Int’l Design Expert

Asian Tribune - 01/07/2014

Jennifer Shellard (Visiting British design expert-left), Bandula Egodage (Chairman/CEO-EDB, at centre) and Sujatha Weerakoone (DG-EDB-right) at “Design Development for Sri Lanka’s Handlooms” session by EDB on 30 June in Colombo.

Just as the US demand for Lankan handlooms surged, an international design expert called on 30 June the country to further strengthen its design and promotion capacities-and Sri Lanka’s handloom designs continue to have a special identity.

“Sri Lanka has been known for its handloom textiles. Sri Lanka, rather than moving into fast fashion handloom cycles, can elevate its special handlooms brand by building competence and international promotion efforts” said Jennifer Shellard (Visiting Lecturer, Woven Textile Department of London’s University of Creative Arts) on 30 June in Colombo.

Jennifer Shellard (Visiting British design expert)addresses the “Design Development for Sri Lanka’s Handlooms” session by EDB on 30 June in Colombo.

The highly experienced Design Expert Shellard was addressing more than 50 Lankan handloom designers and experts at the session titled “Design Development for Sri Lanka’s Handlooms” organised by EDB on 30 June in Colombo. Design expert Shellard has more than 16 years’ experience creating high quality products for the UK craft markets mainly in spun silk. As a senior lecturer in London College of Fashion, she ran the Surface Textile pathway and subsequently set up and ran the BA Hons Fashion Jewellery Course. She also assisted the Moratuwa University in 2003-04 to introduce weave designs to its BA Fashion course. Her expertise extends to using research for designs and crafts, as well as challenging definitions and perceptions of hand-made textiles particularly with regard to their presentation and context. According to the EDB, 2013’s total apparel exports stood at $ 4.26 Bn. In 2013, Sri Lanka exported $115.55 Mn of woven fabrics-an increase of 10% from 2012’s $104 Mn. Top five buyers of Sri Lankan handlooms in 2013 were Bangladesh, India, Turkey, Hong Kong, and UAE. Appetite for Lankan handlooms in US markets has also surged in 2013-US which was ranked as the 15 buyer of Lankan handlooms in 2012, jumped to seventh ranking importer in 2013 with $ 1.64 Mn of purchases.

“Sri Lanka has been known for its handloom textiles. It is a high precision sector and its precious in Sri Lanka branding. In fact, it is a jewel for Sri Lanka” said Design Expert Shellard and added: “Apparel sector is generally responsive to fast fashion cycles. But handlooms are not the same. Sri Lanka, rather than moving into fast fashion handloom cycles, can elevate its special handlooms brand by building weaver competence and international promotion efforts. I am not making a recommendation here but being already hands on involved in Sri Lankan weaving and gaining an understanding of Lankan designs, I identified these factors. Unlike powerlooms, handlooms help in maintaining the country’s identity and helps tourism. My personal view is that if Sri Lanka becomes a mass producer of handlooms then it may not retain the same premium cache it now has. This is true even internationally. The reputed international handloom designers such as Junichi Arai and Reiko Sudo (Nuno Fabrics, Japan), Ann Richards (UK), European designers such as Laura Thomas, Drahomira Hampl, Margo Selby, Makeba Lewis, Katrin Hielle, Ptolemy Mann and Wallace Sewell & Emma Wallace used modern methods but preserved hand-woven quality. Research is important and do your research to make your products relevant, and differentiate locally and internationally-otherwise you will end up with unsold stocks. Also, if you are interested, I have news-that is 2014-15 autumn winter cycle color trend in international fashion for Lankan exporters-the two important colors are rust and dust.”

Bandula Egodage (Chairman/CEO, EDB), addressing the event, said: “43% of Lanka’s total exports are apparel. I believe that the secret of our apparel success could be that we don’t sell apparel but sell designs. That’s the value we deliver. Sri Lanka is a skilful place. We maintain our traditions and resources. Value addition is an essential factor and repeating of the same designs will not help us in the long run. Today’s EDB initiative session titled “Design Development for Sri Lanka’s Handlooms” is in line with this.”

Anuradha Yahampath (Design Director of Kandygs Pvt Ltd), a participant of the EDB session, said: “Input and training of Jeniifer Shellard is important to our industry as she is a highly experienced global designer with an understanding of Lankan design. For me, Shellard’s information on research, design, and color themes are the most important lessons.” Director Yahampath’s Kandygs has a large factory with 200 handlooms, 30 power looms, 50 sewing machines and a fully equipped dye house. Kandygs exports to such destinations as Japan, Germany, Greece, United Kingdom, Netherlands, Norway, Sweden, Mexico and Maldives. Kandygs has been representing in many international trade fairs including Heimtextil Frankfurt, Ambiante Frankfurt, and fairs in Sweden, Switzerland and Tokyo.

UK expert to inaugurate handloom design program

Lanka Business Today - 30/06/2014

A programme on ‘Design Development for Sri Lanka’s Handlooms’ will take place at the Export Development Board auditorium today, June 30 at 9.30am.

It will be inaugurated by International Design Expert Ms Jennifer Shellard of the United Kingdom.

Sri Lanka's handloom textile industry is centuries old, the 6th century BC according to Mahavansa, when Prince Vijaya from India landed at Manthota (Mannar) in Sri Lanka. History records that when he found Kuveni, whom he eventually married, she was spinning yarn. And that tradition continues to the present era as weaving handloom textiles.

The industry has helped showcase the undying creativity of generations of Sri Lankans taking them to the international arena. A range of designs and colours, individual and innovative designs, craftsmanship, colour combination and patterns have been handed down from generation to generation.

According to a spokesperson of the Export Development Board, the handloom textile industry is a highly labour-intensive export-oriented rural-based industry in Sri Lanka. The industry produces predominantly cotton and silk products, utilizing cotton and silk yarn.  Generally, with low capital costs and running expenses, handloom is a household or cottage industry, where skilled hands create value added products.

Another feature is that the industry has the flexibility to supply in small quantities as well as larger quantities and styles to individual tastes and requirements of different buyers from various cultures. There is an immense potential for use of alternative raw materials, abundantly available in Sri Lanka, said the spokesperson.

“The industry employment to around l5,000 persons withe around 962 manufacturers engaged in the industry,” added the spokesperson.

The mix of manufacturers includes leading handloom weaving manufacturers as well as small scale producers. The leading producers had been able to grasp the international market and also have been able to successfully cater to the local tourist market.

Exports include a wide range products such as soft toys made out of handloom fabrics. bed linen, table linen, kitchen Linen bath Linen, upholstery and dress fabric, curtaining, readymade garments, hand woven rugs, tapestries etc. and stationery items such as books, notebooks, albums and writing pads made with handcrafted exteriors. These items are designed for niche markets where hand made products of high value are preferred.

Sri Lankan handloom producers are capable of supplying numerous products to markets such as Italy, Germany, France, UK, Norway, Netherlands, Japan, Korea and Maldives. Sri Lanka has exported handloom textile products to the value of US $ 1,539,623 in 2011.

Awareness of modern design trends, combined with traditional craftsmanship and the influx of new processing techniques, Sri Lankan handlooms have been given a new life. The industry has gained a dominant identity and a foothold in the competitive international market.

Handloom products are completely sustainable and use eco-friendly raw material and internationally accepted quality standards are maintained. Thus, there is a great opportunity for the Sri Lankan handloom industry to flourish.

The Health Benefits of Ceylon Tea

Ceylon tea is prized for its rich aroma and taste, but it also has many health benefits. This tea is grown in Sri Lanka (formally Ceylon), and is a relatively new crop there, only taking off in the mid-1800s. Ceylon tea comes in the same black, green and white varieties that are grown elsewhere, although each has subtle differences in flavor to other teas. Black tea is the most  widely produced and recognized and has citrus overtones. Ceylon green tea has a much stronger flavor than other green teas and is considered an acquired taste. Ceylon white tea is highly prized and said to taste of honey. Ceylon teas have much the same health benefits as regular tea, and are generally purchased for their superior quality and flavor.

Sri Lanka to achieve the apparel export target of 10 billion US dollar by 2016

Sri Lanka’s apparel makers have starting feel the need to popularize their brand among the local people as it has shown a grown of 10 percent in the domestic industry from the last year. There is a scope to further enhance the market as a huge untapped market locally exist, which needs to be addressed and cater good quality garments for an affordable price.

Indradatta Dharmawardane, President of Sri Lanka Apparel Brands Association speaking at the launch of Sri Lanka Apparel Brands Association (SLABA), which was rebranding the Domestic Garment Manufacturers Association (DGMA) founded by the late A Y S Gnanam said that they are currently targeting a bigger share of an estimated two billion US dollar domestic market.