Colombo hosts historic Lanka-Belarus trade talks

Daily FT - 11/07/2014

The first-ever Sri Lanka-Belarus official trade talks commenced in Colombo yesterday amidst avowed assertions from both sides towards forging sustainable trade links while making inroads to the huge ‘New Asian’ and upcoming Eurasian Union markets. The first Colombo talks have now paved the way for a prospective future visit of the President of Belarus to Sri Lanka.
“I am pleased to note that Belarus is Sri Lanka’s first gateway to the promising EEU new single market. Our Free Trade Agreements with Pakistan and India have opened gateways to a South Asian market of 1.2 billion. Equally important is Sri Lanka’s forthcoming FTA with China. Therefore, we invite you to partner with Sri Lanka and take advantage of the new Asian opportunity,” said Minister of Industry and Commerce Rishad Bathiudeen on 9 July in Colombo.

Bathiudeen was addressing the opening session of the first Sri Lanka-Belarus Joint Commission on Trade and Economic Cooperation that commenced at Taj Hotel, Colombo on 9 July. The two-day session will conclude on 10 July, and will see the participation of Republic of Belarus Deputy Minister of Foreign Affairs Valentin B. Rybakov sitting in sessions throughout.
For this historic trade meet, Deputy Minister Rybakov arrived in Sri Lanka on 8 July leading a 20-member plus Belarus delegation.  For technical sessions, Sri Lanka’s side is led by Ministry of Industry and Commerce Secretary Anura Siriwardena while Belarus’ team is led by Deputy Minister Rybakov.

Representing Sri Lanka at the opening session of 9 July were Deputy Minister of Industry and Commerce Lakshman Wasantha Perera, Ministry of Industry and Commerce Secretary Anura Siriwardena, Department of Commerce Director General R.D.S. Kumararatne, EDB Chairman/CEO Bandula Egodage, top officials from EDB and Department of Commerce, 28 other Lankan representatives from Ministries of External Affairs, Plantation, Fisheries, Agriculture, Coconut Development, Economic Development (including BoI and Tourist Board) and the Tea Board. Also present were Lankan private sector reps including reps from business chambers.

Along with visiting Deputy Minister Rybakov, also in the Belarus delegation were Delhi-based Belarus Ambassador for Sri Lanka Vitaly Prima, Maya Rusetkaya (Belarus Ministry of Foreign Affairs) and reps from Minsk Tractor Works, RUE Belmedpreparaty, Promagroleasing , Minsk Automobile Plant, Caravan, Minsk Department of the Belarusian Chamber of Commerce and Industry, Belarusian National Technical University and Vitebsk State Medical University.
“Sri Lanka and Belarus have been enjoying warm and cordial relations over the years based on mutual respect and shared values and I have no doubts that today’s event would bring the ongoing cooperation efforts to a new level,” said Bathiudeen, addressing the session.
“The visit of President Mahinda Rajapaksa to Belarus in August 2013 is a clear sign of Sri Lanka’s desire to build upon the already existing relations so that closer ties are forged. I am given to understand that Belarus is a member of the Eurasian Economic Union (EEU) which is scheduled to come into effect on 1 January 2015. From January 2015, it is expected that EEU will create a single economic market of 171 million people. As Your Excellency is aware, Sri Lanka is a middle income emerging market economy. The Government’s objective is to make Sri Lanka a global hub. Out of the total of 231 exports destinations of Sri Lanka in 2013, Belarus ranked as the 77th export destination and it is interesting to note that it has progressed from its lower rank of 81 in 2011. Less than 1%, that is 0.05%, of our total exports are taken by Belarus. This shows that Belarus is still a virgin market for us with potentials.
“As for our bilateral trade, the total trade between both countries stood at $ 14.24 million in 2013. In 2012, Sri Lanka was at the 69th rank among the countries which are exporting to Belarus. These facts show that there is huge unrealised trade potentials between both countries that we jointly need to make use of. Sri Lanka offers more than 3,520 export products for your importers and today we invite you to select from our expanding basket of products.
To this end, the Agreements on Avoidance of Double Taxation and Prevention of Fiscal Evasions between Belarus and Sri Lanka signed by President Mahinda Rajapaksa and President of Belarus Alexander Lukashenko in August 2013 can greatly help in improving bilateral trade. We are also invite investors from Belarus to partner with Sri Lanka and invest in more than 50 readymade investment projects offered by our Government.
“In this background, investing in Sri Lanka to re-export is a promising option for investors from Belarus. Our Free Trade Agreements with Pakistan and India have opened gateways to a South Asian market of over 1.2 billion people. Equally important is Sri Lanka’s forthcoming FTA with China. Therefore we invite you to partner with Sri Lanka and take advantage of the ‘new Asian opportunity’.”
Addressing the opening session, Republic of Belarus Deputy Minister of Foreign Affairs Valentin B. Rybakov said: “We always attach great significance to JEC sessions that we have with foreign countries. You are absolutely correct in saying bilateral trade levels between Belarus and Sri Lanka are practically negligible. As a result, the (unrealised) trade potential is huge.  Belarus views Sri Lanka as an emerging trade partner and a very important partner in the South Asian region. We are definitely interested in establishing long-term cooperation with Sri Lanka in various areas. For us it is vital to diversify our trade and economic relations with the world.
“This part of the world – South Asia – is a very, very important region as it is becoming the global economic driver – especially when you say about a common market of billions of people and this sounds incredible to Belarus, which is a small country. Belarus is also part of the new Eurasian Economic Union (EEU). As you are aware we are supplying you with potash fertiliser and we are keen to expand our support in this. We are also interested in supporting other agricultural areas/sectors since Belarus is one of the countries that ensure total food security to its people. Therefore we can help you in agriculture too.
“We can also definitely help in industrial matters – we are happy that we already started practical work in setting up a tractor assembly facility in Sri Lanka. We will also continue our cooperation in education. As you know there are sizeable numbers of Lankan students in Belarus. We like to have more Lanka students. This session of the JE commission is a result of President Rajapaksa’s visit to Belarus in 2013. We will try to arrange a return visit to Sri Lanka by our Head of State. The agreements that can be reached by this two-day session will help us in formulating this return visit by our Head of State.”

First ever Lanka-Belarus bilateral trade meeting begins today

news.lk - 09/07/2014

First ever bilateral trade meet between Sri Lanka and a key member of upcoming Eurasian Economic Union (EEU) starts tomorrow 09 July in Colombo. “Our newest trade effort with Balarus strengthens the historic relations and more importantly, gives us direct access to the world’s newest single economic market” said  Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) onTuesday (08).

Minister Bathiudeen was in discussions with his officials on the first ever Sri Lanka-Belarus Joint Commission on Trade and Economic Cooperation to be held in Colombo on 9-10 July with the participation of  Valentin B. Rybakov, Deputy Minister of Foreign Affairs, Belarus.  Deputy Minister Rybakov arrived in Sri Lanka Tuesday (08) leading a 20 member strong official delegation of the Government of Belarus, for this historic trade meeting.

Among sectors represented in today's official delegation are agriculture, agricultural machinery and fisheries. Some representatives from Belrussian private sector too are also expected.

Belarus is a member of the Eurasian Economic Union (EEU) planned to go into effect on 1 January 2015. The three members of EEU are Belarus, Kazakhstan, and Russia. From 01 January ’15, EEU will create a single economic market of 171 Mn people giving a new boost for Sri Lanka’s export diversification efforts.  According to the Department of Commerce of Sri Lanka, Sri Lanka’s trade with Belarus has recorded an erratic pattern over the years. The total trade between both countries stood at $ 14.24 Mn in 2013. The balance of trade has been in favour of Belarus. Sri Lanka occupies the 69th rank among the countries which are exporting to Belarus in 2012. Sri Lanka’s exports to Belarus include tea with a share of about 94%,followed by small quantities of new pneumatic tires, of rubber, retreated or used pneumatic tires of rubber.

Several Joint Statements were signed as a result of the successful meetings and negotiations between President Mahinda Rajapaksa and Belarus President Alexander Lukashenko during   President Mahinda Rajapaksa’s visit to Belarus in August. In addition, a number of  Agreements / MoUs covering trade & economic co-operation, Avoidance of Double Taxation and Prevention of Fiscal Evasions, Visa Exemption for Holders of Diplomatic and Service Passports, Mutual Legal Assistance in Criminal Matters, Military Technical Cooperation, Cooperation between the Ministries of Justice, Cooperation in the Field of Tourism, Civil Aviation etc  too were concluded during 25-27 August’s visit.

Sri Lanka biz forum in Israel a success

Daily FT - 07/07/2014

A successful business forum from Sri Lanka consisting of 40 business leaders led by Deputy Minister of External Affairs, Sri Lanka Neomal Perera, who himself is a business leader completed a successful forum interacting with business leaders, L.R. Group, Sri Lanka-Asia Chamber of Commerce and the community on various aspects including tourism, hi-tech, water, energy, medical, apparel, employment, agriculture, greenhouse cultivation, dairy, fish, flowers, diamonds, gems, jewellery, rubber, education and other topics suggested by prospective delegates.

BOI Chairman Dr. Lakshman Jayaweera, Central Bank of Sri Lanka Deputy Governor Dr. Nandalal Weerasinghe and a number of business leaders from the Chambers and various sectors addressed the seminars/workshops and took part at the deliberations. The entire delegation was taken on religious, cultural and technical visits.
The delegates visited Bethlehem, Nazarath and Jerusalem. In addition to a trade delegation to Sri Lanka consisting of 21 members, a delegation during CHOGM led by the Ambassador there will be a third delegation in October to Sri Lanka consisting of high end business leaders, industrialists and hi-tech companies to follow up the work on the areas specified above.
There was a reception for delegates at the official residence of the Ambassador Sarath Wijesinghe who planned, originated and masterminded the event.
The event was organised by the Sri Lanka Embassy with co-partners, the Ministry of External Affairs in Sri Lanka, Export Development Board in Sri Lanka, L.R. Group in Israel and the Israel – Asia Chamber of Commerce, Israel.
Minister Neomal Perera met with his Israeli counterpart Tzahi Hanegbi the Deputy Minister of Foreign Affairs, in Israel where bi-Iateral and business matters were discussed in detail.
The forum was a tremendous success with the Sri Lankan delegates meeting and starting business immediately with the business community. LR Group and Sri Lanka Israel Chambers sponsored the inauguration, seminars, workshops and one to one meetings during the event.
The trade mission from Israel to Sri Lanka will be in October.

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.