Rapid growth in IT/BPM revenue

nation.lk - 13/07/2014

SLASSCOM says untapped potential lies outside Fortune 500 firms Sri Lanka has witnessed a brisk growth in export revenue in the field of Information Technology and Business Process Management (IT/BPM) with revenue for 2013 estimated to have increased to US$ 720 million from US$ 605 million in 2012 and projected to rise to US $850 million by end this year. According to a recent industry report by the Sri Lanka Association of Software and Service Companies (SLASSCOM), the primary IT/BPO business association in Sri Lanka, the industry has shown an impressive revenue growth trend of about 238% since year 2007 whilst total employment grew from 33,700 in 2007 to an estimated 75,100 employees in 2013, and the number of companies in the industry grew from 170 in 2007 to over 220 in 2013.

“According to the ICT export survey 2010, large companies contributed to over 70% of the export earnings whilst medium and small scale companies contributed the balance. In the BPM sector, over 90% of the contribution was by the larger players,” the Sri Lankan IT/BPM Industry 2014 Review, a SLASSCOM publication, prepared by PricewaterhouseCoopers in Sri Lanka stated.

The report noted that out of the total revenue of US $720 million achieved in 2013, IT sector claimed 77.5% of the total and BPM accounted for 22.5% with the top three markets being Europe (UK and Ireland), US and South Asia.

“Moreover, the Asia-Pacific region has shown faster growth than mature markets whilst the industry makes significant market presence in Australia/New Zealand, Asia Mature Markets and the Middle East,” the report disclosed.

Meanwhile, the report noted that outside of the Fortune 500 companies, a massive opportunity lies in the huge untapped markets of SMEs, public sector and family run entities which will require a different and more innovative service model. The industry body said that as the traditional outsourcing model for BPM continues to evolve towards more value added services, cost arbitrage has become secondary to value creation and industry knowledge in the decision, making process of who and where to partner.

“With cloud solutions becoming increasingly more stable and cheaper, opportunity exists to leap frog into next generation services such as demand based and online big data services,” the report highlighted.
Sri Lanka’s IT/BPM industry has set its vision to achieve USD 5 billion in exports by 2022 while generating 200,000 jobs and creating 1,000 start-ups in this process. The country’s overall strategic vision is backed by its approach to differentiation and target markets with planned initiatives for skills development and talent management. The industry adopts a six pronged approach to drive strategy to reach the desired target by 2022.

UAE lifts ban on Sri Lanka's export of chicken, eggs

Daily News - 11/07/2014

The UAE government announced the lifting of the ban on Sri Lanka's export of chicken and eggs to the UAE market with immediate effect. UAE had previously imposed a blanket ban on Asian countries including Sri Lanka, covering the export of chicken meat and eggs due to Notifiable Avian Influenza (NAI).

Sri Lanka made a presentation to the Animal and Agricultural Affairs of the UAE Water and Environment Ministry to lift the ban as Sri Lanka is now free of Avian Influenza.

Industry and Commerce Ministry Commerce Department officials took up the matter through the Sri Lanka Consulate General in Dubai and submitted the documents with the support of the Department of Animal Production and Health, Peradeniya and the Industry stakeholders to UAE authorities to prove that Sri Lanka is now free of Avian Influenza.

The Sri Lanka Consulate in Dubai made representations to the UAE Water and Environment Ministry in Dubai. Consul General of Sri Lanka in Dubai Abdul Raheem along with industry stakeholders (Bairaha Farms PLC.) met Water and Environment Ministry Animal and Agricultural Affairs Under Secretary engineer Safi Mohammed Al Shara last year.

All documentation to prove that Sri Lanka is now free of Avian Influenza was submitted through the UAE Foreign Ministry by the Sri Lanka Mission in Dubai.

Raheem said since the blanket ban on Asian countries was imposed by UAE it took some time for the UAE authorities to examine the Sri Lankan situation.

"I am pleased that the UAE has now informed that they are lifting ban on Sri Lankas export of chicken meat and eggs to the UAE market."

He said Sri Lanka was the first country that the UAE government has lifted the ban among other Asian countries.

Raheem said although the ban has been lifted by UAE authorities, Sri Lanka will have to fulfill other requirements such as general requirements for Halal Certification bodies in Sri Lanka, animal slaughtering requirements according to Islamic Law and hygienic regulations for poultry processing abattoirs and their personnel prior to exporting Sri Lanka products to the UAE market.

Accordingly, export of table eggs can be done with immediate effect but the export of chicken meat and processed chicken products has to meet the above requirements before shipping from Sri Lanka.

Raheem said these UAE regulations and formalities will be sent to the Sri Lankan authorities.

He said the export ban was discussed with stakeholders in Sri Lanka and the industry stakeholders have come forward to voluntarily facilitate compliance with the new regulations, as the poultry industry has now become a fast developing sector, including rural areas in Sri Lanka.

Raheem said if Sri Lankan chicken meat products can gain market access in the UAE, there is a strong possibility that these products will be eventually penetrate other GCC markets, as well.

He appreciated the role of officials of the UAE Foreign Ministry and Water and Environment Ministry for the cooperation extended to Sri Lanka in lifting the export ban.

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.