Kunming ’14 rakes in $4.6M for Lankan biz

Asian Tribune - 01/08/2014

Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka-centre) readies to inaugurate Sri Lanka Pavilion at the Kunming 2014 expo on 06 June in Kunming, Yunnan Province.

Sri Lanka has garnered more than $4.6 Mn orders at the recently concluded Kunming Int’l Fair in China-and this too is only from the initial overview of Kunming outcomes rather than any in-depth totals. “I am pleased of the performance of the delegation of 119 companies and businesses that I led to Kunming. I commend EDB for this successful facilitation effort” said a satisfied Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on 31 July in Colombo.

Minister Bathiudeen was responding to the briefing by Bandula Egodage (Chairman/CEO-EDB) on the success of recently concluded China–South Asia International Expo in Kunming, China.

On 04 June, Minister Bathiudeen led a Lankan delegation of 119 companies facilitated by the EDB to take part in the second China–South Asia Expo and 22nd Kunming Fair held in Kunming, China. EDB was assisted by the Sri Lankan Embassy in Beijing, China.

The expo, which concluded on June 10 featured over 1000 enterprises from 46 countries and regions. The Kunming Fair has become one of the four top annual events (such as the Canton Fair) in China’s trade calendar. Due to its high prominence in the trillion dollar GDP nation, the Kunming Fair has become the second biggest annual fair in the South West China region. Sri Lanka has consistently been one of the strongest South Asian participants at this expo.

Sri Lanka has been taking part in this event when it was held for the first time in Beijing in 2007.

The fair was jointly hosted by China’s Ministry of Commerce, the Governments of Yunnan, Sichuan, Chongqing, Guizhou, Guangxi and Tibet, and Chengdu Municipal (People’s) Governments. Minister Bathiudeen also took part at the China-South Asia Business Forum held on the sidelines of Kunming event on 07 June. Addressing the Forum, Minister Bathiudeen stressed: “China has been not only a promising market for Sri Lanka products, but also, a development partner. Total trade between the two countries has increased up to US $ 3619 Mn in 2013, showing a steady growth from US$ 1141 Million recorded in 2006. It is important to note that these improvements are reflected in both directions in our bilateral trade. Sri Lanka’s exports to China, although it is still at a comparatively lower level, have increased from US $ 35 million in 2006 to US $ 182 million in 2013. This is a clear indication of the potential that exists for further expanding our exports to the large Chinese market. We are also pleased to see that Sri Lanka is among the few Countries in the Asian Region which recorded positive export growth with China during last few years.”

Accordingly, Sri Lanka pavilion was located at the hall No.6, in the South Asian pavilion at the Fair. The participating Lankan businesses have informed EDB that at the end of the event, they were in receipt of confirmed product orders exceeding $750,000 with additional $3M under negotiation while more than $800,000 sales leads being generated for Lankan exports. This is apart from general sales inquiries for Lankan products to the tune of $140,000. EDB delegation represented such diverse product and service sectors as tea, gem and jewellery, arts, crafts and handicrafts, coconut fibre, Ayurvedic and herbal products, and even gem cutting and polishing.

According to EDB, Sri Lankan gem and jewellery stalls, among others, reported attracting very high numbers for their displays while Lankan Ayurvedic preparations –a novelty to Kunming-too drew strong attention. 119 Lankan businesses at Kunming Fair were assisted by Dr Yousuf Maraikkar (Executive Director-EDB).

At the 2nd Sourcing Event at the Fair, which was one of the most influential brand-name activities of the Kunming expo, some of the Sri Lankan companies met Chinese retail chain, whole sellers and supermarket representatives in China and had initial discussions. The BOI and the EDB made presentations at this event. The Sourcing Event consisted of professional sessions for purchasing commodities and services from South Asian countries.

Lanka exports clinch hat trick win in first half

news.lk - 30/07/2014

Sri Lanka’s exports sector has clinched a triple win for 2014 1st half (January-June) –a first time event.

“Latest reports are good news for our $20B goal therefore we should commend our committed exporters for this achievement” said  Rishad Bathiudeen, Minister of Industry and Commerce of Sri Lanka onMonday (28) in Colombo.

Minister Bathiudeen was responding to Bandula Egodage, Chairman/CE-EDB who briefed him of the latest provisional export revenues.


Accordingly, Sri Lanka’s latest provisional export numbers have recorded the highest first half earnings witnessed in five years, topping it up with a YoY revenue jump in 1H -2014 in comparison to 1H-2013, while also surging on a monthly basis in May-June ‘14.  Monthly increase in 2014 June is also a steady continuation of the upward trend of quarterly exports that began in March ‘14.

Sri Lanka January-June ’14 provisional exports recorded the highest 1H earnings since Y2010, and registered $5410.4 Mn ($5.4B) in total. This is a huge 45% jump from H1 2010 which stood at $3741 Mn. ‘Manufacturing exports’ led the surge of 1H 2010 to 1H 2014 five year span, rising by almost 100%, followed by agro exports (by 70%), industrial exports (by 69%), fisheries exports (by 65%), apparels (by 57%) and tea (by 56%).

The latest rise is also seen YoY-in comparison to 1H-2013 ($4.66B), 1H-2014 increased by 16.08%. As for 2013/’14 YoY key sectors of growth for 1H, fisheries spearheaded the surge with a rise of 24% (to $140.22 Mn), followed by agriculture (rising by 22% to $1303.2 Mn), apparel (rising by 20.40% to $2400.5 Mn), unclassified (rising by 17% to $ 18.81 Mn), manufacturing (rising by 14.15% to $ 1171.39 Mn) and industrial products (rising by 14% to $ 3948.19 Mn). On a 1H YoY comparison of export regions, the highest exports growth is seen from the African region (41%), followed by EU (19%) and the Middle East (19%), US (17%), Central and Eastern Europe (15%), BRICS (14%), Latin America (12%), South Asia (11%) and CIS      (6%). Leading five markets (countries) of exports on YoY in 1H 2014 are US, UK, Italy, India, and Germany.

On a monthly basis, latest provisional exports for June ‘14 have risen by 12.09% to $988.63 Mn from ’13 May’s $882 Mn. Textiles and garments spearheaded the monthly growth, rising by 22.32% to $444.39 Mn, followed by industrial products (rising by 14.12% to $714.68 Mn), agricultural products (rising by 10.26% to $251.80 Mn), manufacturing (rising by 2.36% to $204.59 Mn), and petroleum products (rising by 1.69% to $30 Mn). Within agricultural products, tea exports have grown by 9.06% to $151.13Mn, coconut grew by 5.01% to $ 48.25 Mn, and other export crops (such as spices, fruits and vegetables) have grown by 22.08% to $49.48 Mn. Within manufacturing, electronic, electric and machinery products rose by 3.13% to $ 31 Mn, footwear rose by 46% to $ 9.03 Mn.

Country’s apex export body, the EDB, is now working towards $20B export goal by 2020.(KH)

Japan positive on FTA, wants economic regime strengthened

Asian Tribune - 30-07-2014

Kazuyoshi Akaba (the visiting Japanese Senior Vice Minister of Economy, Trade & Industry (METI) -at right) in discussions with Sri Lankan team led by Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka-at left) on 28 July in Colombo.

As Sri Lanka-Japan bilateral trade jumped $890 Mn and edged to $ 900 Mn mark, a keen Japan signalled towards a Lanka-Japan FTA for the first time-albeit with a qualifier. “In terms of country risk and future potential, I believe Sri Lanka is quite promising. We consider that FTA and EPAs as very useful means to promote trade. Mere conclusion of FTAs alone is not sufficient for better trade however. What is important is to develop a very robust foundation here” said a confident Kazuyoshi Akaba, the visiting Japanese Senior Vice Minister of Economy, Trade & Industry (METI) on 28 July in Colombo.

Japanese Minister Akaba was responding to Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on 28 July during his bilateral session with the Sri Lankan team led by Minister Bathiudeen at Ministry of Industry and Commerce, Colombo 3.

Japanese Minister Akaba- who graduated from Faculty of Law, Keio University and who once worked with Japanese multinational Mitsui’s Beijing station as a Senior Corporate Exec-is the first Cabinet ranked METI Minister to visit Sri Lanka after two decades and is accompanying a six member Japanese team to Colombo. It is the second time that Akaba is in Sri Lanka-his first visit being 30 years ago.

Joining Minister Bathiudeen on 28 July afternoon were Admiral Wasantha Karannagoda (Ambassador of Sri Lanka in Japan), Anura Siriwardene (Secretary, Ministry of Industry and Commerce), Bandula Egodage (Chairman/CEO, EDB), and R D S Kumararatne (DG Department of Commerce).

According to the Department of Commerce of Sri Lanka (DoCSL), Japan is the 9th largest export destination for Sri Lanka’s exports with a share of 2%. As for imports, Japan ranks at 6th supplying 4% of Sri Lanka’s total imports. The Department of Commerce of Sri Lanka has initiated the Economic Partnership Agreement between Japan & Sri Lanka this year in collaboration with METI. Two preparatory meetings were already held in this regard with the relevant line Ministries and proposals also have been obtained. The top three Lankan exports to Japan in 2013 were tea (22%), apparel (17%), and seafood (17%). 52% of 2013 imports bill from Japan was spent for motor vehicles.

“In terms of country risk and future potential, I believe Sri Lanka is quite promising. We consider that FTA (Free Trade Agreement) and Economic Partnership Agreement as very useful means to promote trade. Mere conclusion of FTAs alone is not sufficient for better trade however. What is important is to develop a very robust foundation here-foremost, the necessary infrastructure and to also an investor friendly environment; these will lead to conclusion of FTA and EPA with Sri Lanka in future” ” said a confident Japanese Minister Akaba and added: “We concluded many FTAs with our trade partners. There have been many FTA successes and failures for us. As for Sri Lanka, let’s do whatever we can and I am hopeful that we can jointly go for win-win relationship.”

Addressing Minister Akaba, Minister Bathiudeen said: “Sri Lanka is expecting a GDP growth rate of 7.5% this year. The total trade with Japan which stood at US$ 566 Mn in 2004 increased by 58% to $894 Mn in 2013. In 2013 exports to Japan stood at $224 Mn, showing 4% increase from 2012 export levels. We already have FTAs with India, Pakistan and discussions are under way for FTA with China. Sri Lanka wishes to considerably expand trade and economic cooperation with Japan and it is time for a Free Trade Agreement between the two countries. We welcome Japanese engagement towards our five hub strategy for mutual benefits. Sri Lanka is also keen on receiving strong trade delegations from Japan. We specially invite Japanese investors to our apparels, ceramics, light engineering, leather products, food processing, leather products and tourism. Already 141 Japanese business enterprises are active in Sri Lanka.”

According to the BoI, at present, there are about 60 enterprises with Japanese investment alone are operating in Sri Lanka under the section 17 of the BOI Law. As of December 2013, they have invested about US$ 325 Mn, providing about 10,000 employment opportunities for the Lankan community. In 2013, Japanese FDI inflows to Sri Lanka stood at $ 37.62 Mn. Japanese Investors already benefit from the Double Tax Relief Agreement and the Bilateral Investment Protection Agreement signed between Sri Lanka & Japan.

“We attach great significance to Sri Lanka as the Hub of the Indian Ocean. We predict that Indian Oceanic IORAC ARC region to be a strong export market for Japan-receiving 16% of its total exports by 2040, and therefore Sri Lanka is firmly in our view as a hub” responded Japanese Minister Akaba, and added: “We realised that Sri Lankan business climate to be better than we expected. Therefore for Japanese investors, Sri Lanka offers medium to long term prospects. But Sri Lanka have some work to do-needs to overcome shortage of skills in its manufacturing, needs to re-introduce business visa for Japanese businesses, and mitigate higher electricity tariffs so that Japanese investors, instead of moving to Vietnam, Indonesia and Thailand, can seriously pay attention to this country. Better electricity tariffs are vital for Japanese manufacturers since 88% of our power generation costs are due to thermal power and more importantly, in the aftermath of 2102 Fukushima issue, we are now paying J-Yen 3.6 Trillion more for our energy needs. Still, Japanese coal power technology is one of the best in the World.”

Responding to Japanese Minister Akaba, Minister Bathiudeen said: “Thanks to the industrial vision of HE the President Mahinda Rajapaksa, we are providing electricity to industries at a concessionary rate so that they do not face huge cost pressures. A new power generation facility, the Sampur power project, too is now on the cards. I invite Japanese investors to invest with us and to make use of these additional facilities as well.”

Both Minister Bathiudeen and Minister Akaba also delved on Japanese development support to Sri Lanka on 28 July.

Global Rubber Conference 2014 to be held in Sri Lanka

Sri Lanka has been selected to host one of the world’s leading conferences on natural rubber Global Rubber Conference (GRC) 2014.

The three-day international event will be held from 27 to 30 October 2014 at the Cinnamon Grand in Colombo.

Global Rubber Conference 2014 themed “Sowing the Seeds for Sustainable Future” is expected to bring together over 700 experts and delegates representing over 25 countries.

Government officials, rubber producers & planters, traders, importers & exporters, manufacturers of rubber products, commodity and investment analysts, rubber machinery & equipment suppliers and their supporting industries are expected to attend the conference.

The Conference is Co-organized by the Sri Lanka Export Development Board (SLEDB) and supported by the International Rubber Research Development Board (IRRDB) and over 20 global government agencies and associations.

The GRC 2014 will be locally supported by the Ministry of Industry and Commerce and the Ministry of Plantation Industries.

It will be addressed by 18 eminent guest speakers who represent government agencies, rubber research bodies, rubber associations and commercial companies.

The conference aims to bring together both regulatory authorities and commercial players of the rubber world to provide updates on current trends and future challenges faced by the natural rubber industry.

MINT- an opportunity to diversify Sri Lanka’s export markets

The Island - 23/07/2014
By Nikita Samaratunga

In 2001, economist Jim O’Neill famously coined the term ‘BRIC’ to refer to the newly emerging economies of Brazil, Russian, India, and China. In 2014 O’Neill has now popularized a newer and what the BBC calls ‘fresher’ term – MINT – Mexico, Indonesia, Nigeria and Turkey (put forward by Fidelity Investments).

In a time where many developed nations are facing a crisis with regard to their ageing population, what makes MINT stand out, according to O’Neill, are their favourable demographic statistics. Mexico, Indonesia, Nigeria and Turkey are four of the world’s most heavily populated emerging economies, with populations of 118, 237, 174 and 73 million respectively. To add to that in the next 20 years all four countries will see a rise in the number of economically active workers to inactive - meaning they will have a declining dependency ratio. What this will do is ease the burden off the government. In recent years an increasing dependency ratio has plagued countries from the UK to Japan, putting pressure on government budgets and the shrinking work force. Thus the demographics of MINT will certainly be a source of envy for their more developed counterparts.

In an interview with BBC, Mexican Foreign Minister Jose Antonio Meade Kuribrena alluded to another factor that had allowed MINT to stand out. This was the four countries favorable geographical location. Mexico neighbors the world’s current superpower the USA and borders Latin America, a region that has exhibited high growth rates and enormous potential in recent years. Indonesia is strategically located in South-east Asia, with Turkey straddling the West and East. With increased investments and partnerships being made on the African continent, Nigeria has significant potential given its access to Atlantic Ocean.

According to World Bank statistics in 2013 Mexico, Indonesia, Nigeria and Turkey grew by 1.1%, 5.8%, 7.0% and 4.0% respectively. The MINT’s in comparison to the BRIC nations have smaller economies. However, as growth in the BRIC nations has slowed, attention has been focused on MINT who are expected to show strong sustained growth over the coming decade. However all that glitters is not gold- the MINT nations have also been plagued with problems from political instability to corruption, as well as feeling the aftershocks of the recent global financial crisis.

Sri Lanka enjoys a healthy trade relationship with IRC, with India, Russia and China being major export destinations for Sri Lankan products. Furthermore politically the country has, in particular, over the years, seen the strengthening of ties with Russia and China. Sri Lanka’s relations – both economic and political – with MINT, remain surface. There is huge potential however to be explored given the young demographic which makes for a large labor pool and consumer market; pro-business legal systems in place and governments that have made economic growth their top priority, particularly in countries such as Mexico; and the strategic positioning of these four countries. Thus, in a day and age where the Sri Lankan export sector, one of the main drivers of economic growth and development in the country, is characterized by product concentration and heavy dependence on a few markets, the emergence of MINT provides a opportunity for Sri Lanka to expand its horizons.

Currently the Mexican, Turkish and Indonesian markets respectively make up 1.5% 1%, 0.5% of our exports (2013) (there are currently no Sri Lankan exports entering the Nigerian market). The rise of MINT presents an opportunity to increase our share in these markets, in line with the objectives of the Mahinda Chintanaya and the Export Development Board of Sri Lanka, which aims to increase exports to markets other than the EU and USA. Looking at the current imports of MINT there is significant potential in the export of rubber and related products, apparel, precious stones, and fish to these four countries, all of which are Sri Lanka’s key export sectors. What the country must do is view the rise of MINT as an opportunity to reduce its dependency on the traditional markets of Europe and North America and strengthen relations with these new and emerging markets.

“Sri Lanka will be in the next five emerging countries”: French Ambassador

Daily FT- 23-07-2014

A session on ‘Bilateral Trade between Sri Lanka and France’ organised by the National Chamber of Commerce was held with the participation of  Ambassador of France Jean Paul Monchau, as a Special Guest Speaker and assisted by Commercial  Counsellor of the Trade Section of the Embassy Jean Louis POLI, at the Chamber, last week. Additionally Government senior officials- Director General Commerce, Director General, Export Development Board and Board of Investment graced the occasion.

The Ambassador gave a very impressive presentation on bilateral trade between the two countries and the potential products and services in demand in France. He said that France is open to FDIs; two foreign countries each day invest in France. Sri Lanka should take the opportunity and invest in France. He said that the main exports to France from Sri Lanka are mainly apparel and garment products, other items are rubber based products, coco peat and fibre. Potential exportable items are gems and jewellery, spices and cashew nuts and also huge potential for tourism and investment.

The Ambassador said that he is amazed at the vast strides made in Sri Lanka and surprised to see the rapid development taking place after the war in Sri Lanka. We quote from his speech “A few years back news we receive from Sri Lanka were mainly on the war situation but this has changed drastically in the recent past. I am very confident and positive of the economy of Sri Lanka and I want to communicate this situation to my Government and the French businessmen at the transformation of Sri Lanka.
“I just would like to comment on Sri Lanka handling the CHOGM, it was very well organised with the required infrastructure. I appreciate the spirit of the people in Sri Lanka, they are very positive thinking, Sri Lanka would be included in the next 5 emerging countries in the world! According to COFACE, the French Trade Insurance Company, growth figures of Sri Lanka looks very impressive, recently Time Magazine listed out countries for investment, and Sri Lanka was one of them. Recent visitors from France were surprised at the infrastructure development.”
He further said, “Business people investing in India will now look at Sri Lanka as an investment destination. There are around 300 French companies present in India. I attended a Business Forum in India in September last year, as I had just taken up post in Sri Lanka, I will invite them to come here, economy is growing and the purchasing power of people are also growing. I feel that Sri Lanka would be an attractive destination for investment.
“I recently visited Hambantota Sea Port, which has been a controversial subject in your country, but I am confident in 15 years time no one would say that it was a wrong decision. Already Colombo Port is congested, there are nearly 200 vessels passing Sri Lanka every day in the Indian Ocean, if you attract 4 or 5 vessels a day, it will be a very good start for Hambantota,” he said.
Speaking at the session, Director General of Commerce, R.D.S. Kumararatne said businessmen who are interested in business in Europe may contact the Dept of Commerce and said that he has officers stationed in many countries including France for business development activities. He said that Sri Lankan businessmen could contact the Dept of Commerce directly so that appropriate support could be extended. Addressing the gathering Director General, Sri Lanka Export Development Board, Sujatha Weerakoon said exporters who are interested in exporting to France and other European countries could directly contact EDB and they could assist them accordingly.  Board of Investment, Director Promotions, Dilip Samarasinghe emphasised on the facts and figures of investment environment in Sri Lanka.
In conclusion, the President of the National Chamber, Sunil Wijesinha, thanked the Ambassador for the positive thinking on Sri Lanka which is a much needed perception to be spread to the world.
Many chamber member company representatives were present at the interactive session, and the Ambassador and the Commercial Counselor answered the queries put forward by the participants. It was a well attended event.

Sri Lanka Plast and Rubexpo launch in August

Daily FT - 21/07/2014

Enterprising Fairs India Limited, a B2B exhibition company from India, has collaborated with the Plastics and Rubber Institute of Sri Lanka (PRISL), to conduct their second edition of Sri Lanka Plast – a Plastics Expo and the first edition of Rubexpo – a Rubber Expo on 14, 15 and 16 August 2014 at BMICH, Colombo. The Ministry of Industry and Commerce (MOIC), Export Development Board (EDB), Industrial Development Board (IDB), Rubber Research Institute of Sri Lanka (RRISL) and Central Institute of Plastics and Engineering Technology, a government body of India (CIPET) have also extended their support to these B2B exhibitions.

The plastics and rubber expos are B2B exhibitions bringing over 150 exhibitors from 10 different countries, including Sri Lanka, India, China, Taiwan, Japan, Italy, Philippines etc. showcasing their, machinery and technology available.
There will also be a guidance booth for young and aspiring entrepreneurs who can get direction on how to start a business in the plastics and rubber industry. This expo is set to attract over 20,000 visitors over the three days according to the organisers.

On behalf of the organisers Enterprising Fairs India Ltd. Managing Director B. Swaminathan said, “As a catalyst that encourages trade, we are happy to launch two significant expos focussing on plastics and rubber, which play an integral part on local export earnings. As a developing nation Sri Lanka is opening up with its economy and infrastructural advantages, there is no better time than this to open up the country and inviting international businesses to experience its riches.”

As a prelude to these exhibitions, PRISL together with Enterprising Fairs has planned an International Seminar on Trends and Advancements in the fields of plastics and rubber on 5 August and an exclusive CEO Forum on 1 August at The Kingsbury Hotel, Colombo to encourage the plastics and rubber industries to take ‘exports’ as growth strategy. Experts from the Government, EDB and few from India are expected to address this elite forum, powered by Sri Lanka Plast and Rubexpo. People who want to visit these expos are encouraged to pre-register to the seminars through www.enterprisingfairs.in or call 0114545687 for more information.