PRISL Enterprising Fairs CEO Forum for plastics and rubber industry ends on high note

Daily FT - 04/08/2014

• SRI LANKA PLAST and RUBEXPO launches at CEO Forum

PRISL (The Plastics & Rubber Institute of Sri Lanka) together with Enterprising Fairs India Ltd (EFIPL) organised a CEO Forum on at The Kingsbury Hotel on 1 August, to encourage the plastics and rubber industries to take ‘exports’ as a growth strategy. Experts from the Government, EDB and India addressed this elite forum. The event saw over a 100 business leaders local and international, from the plastics and rubber industries, and they were able to gain valuable insights on industry best practices, through case studies from India and the present and future plans of the export market for Sri Lanka.

The eminent panel of speakers consisted of Export Development Board (EDB) Chairman and Chief Executive Bandula Egodage, Ministry of Finance and Planning Director General – Fiscal Policy Mahinda Siriwardane and Central Institute of Plastics and Engineering Technology (CIPET) Chief Manager S. Illangovan.

Egodage touched on the subject of ‘Building Brand Sri Lanka – Opportunities, Marketing and Support’, whilst Siriwardane elaborated on ‘Exports – the need of the hour’ and Illangovan discussed the topic ‘Standards, Skills, Training and Mentoring – The India Experience’.

As a follow up to the CEO Forum, the PRISL and Enterprising Fairs India will be organsing an International Seminar on Trends and Advancements in the fields of Plastics and Rubber on 5 August at The Kingsbury Colombo. Those who want to register for the seminar are encouraged to register through seminar@prisrilanka.com or by calling 0114545687.
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.”After the success of SRILANKAPLAST – an international exhibition on Plastics, in 2012,  Enterprising Fairs India Limited, a B2B Exhibition company from India, once again has collaborated with The Plastics and Rubber Institute of Sri Lanka (PRISL), to conduct their second edition of SRILANKA PLAST – a Plastics Expo (www.srilankaplast.com) and the first edition of RUBEXPO – a Rubber Expo (www.rubexpo.com) on 14, 15 and 16 August 2014 at BMICH, Colombo. To visit these expos you may pre-register at www.enterprisingfairs.in or send a mail to visitor@efipl.in.

Sri Lanka exports record highest first half earnings this year

Colombo Page - 02/08/2014

Sri Lanka's exports sector has recorded the highest first half earnings witnessed in five years for the January - June half of 2014.

Sri Lanka's January - June 2014 provisional exports has recorded the highest 1H earnings since 2010, registering US$ 5.41 billion. This is an increase of 45% from the 1H earnings of 2010 which stood at US$ 3.74 billion.

Exports earnings in in the first six months 2014 compared to the same period in 2010, within the five-year span manufacturing exports had surged almost 100%, followed by agro exports by 70%, industrial exports by 69%, fisheries exports by 65%, apparels by 57% and tea exports by 56%.

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.

Minister of Industry and Commerce Rishad Bathiyutheen has commended the country's apex export body, the Export Development Board (EDB) for the export earnings figures.

"Latest reports are good news for our US$20 billion goal, therefore we should commend our committed exporters for this achievement," Minister Bathiyutheen said when the EDB chairman Bandula Egodage briefed the Minister of the latest provisional export revenues.

The EDB is working towards achieving US$ 20 billion in exports earnings by 2020.

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.