Govt. keen to triple rubber industry to $ 3 b

Lanka News Papers - 31/08/2014

Sri Lanka is on its way to making the rubber industry a $ 3 billion sector, Minister of Industry and Commerce Rishad Bathiudeen stated following the announcement that the 4th Global Rubber Conference (GRC) and Exhibition will be held in Colombo from 27 to 30 October.

The GRC, formerly held as the Asean Rubber Conference until 2010, has been held in Cambodia (2011), Vietnam (2012) and Indonesia (2013) so far, while Sri Lanka will be hosting it for the first time with over 700 trade visitors and 28 countries set to participate.

The event, co-organised by the Sri Lanka Export Development Board and Confexhub, will be themed Sowing the Seeds of Sustainable Future . The Ministry of Plantation Industries and the Ministry of Industry and Commerce have extended their support for the event as well.

We are now aiming at an ambitious $3B rubber industry in the coming decade. To arrive at this $3B in a viable manner, it is essential for us to support the rubber industry including growers. I believe it is time for a long term development plan for this sector, said Minister Bathiudeen, speaking at the launch of GRC in Colombo on Thursday.
There are several important socio-economic reasons to strengthen this industry. It is time for a long-term development plan for the rubber sector, he stated.

In that context he said that hosting the GRC will be a great opportunity for Sri Lanka to take the sector to the next level, providing local stakeholders a chance to network with their international counterparts.
In 2013, Sri Lanka earned $ 72 million in rubber exports as well as $ 887 in rubber finished products. The total earnings of $ 960 million was a 100% increase in earnings from 2009, the Minister added.

Sri Lanka is currently the sixth largest exporter and the eighth largest natural rubber producing country in the world while the Government has set in place a 10-year plan to develop the sector.

Meanwhile, the Ministry of Industry and Commerce also announced the implementation of two projects including the first ever rubber industry database as well as a national rubber research consensus at a cost of more than $ 46,000.

Commenting on the current situation regarding the rubber sector in Sri Lanka, Export Development Board (EDB) Chairman and Chief Executive Bandula Egodage explained that the rubber industry was separated into the plantation services, pertaining to raw rubber production, and the rubber product manufacturing services.

He stated that the EDB has initiated several projects to improve the industry while it encouraged value addition as opposed to raw exports.

We do not intend to curtail raw rubber production in Sri Lanka, but as part of our export vision, we are looking to add value to our exports. That is our mandate and direction, he said.

Egodage highlighted the importance of networking, awareness, investment and global recognition which is where hosting the GRC in Sri Lanka would benefit local stakeholders.

The GRC will bring together stakeholders from the US, Europe, East Asia, North Asia and ASEAN countries to discuss issues concerning the global NR situation, strategies and challenges for sustainability, enhancing quality and several other issues.

The International Rubber Research and Development Board Secretary General Dr. Abdul Aziz urged all rubber players, policy makers, industry experts, producers and manufacturers to make use of this opportunity to discuss strategies aimed at expanding the rubber industry for global sustainable growth.
He explained that current global rubber prices are not conducive but predicted that they would recover. The GRC will help participants discuss the challenges that lie ahead as well as new material and strategies to improve value addition.

According to Dr. Aziz, over 50,000 products are made from rubber and around 70% of rubber production goes into the tyre industry.

He shared his optimism regarding the future of the global sector, revealing current initiatives that focus on working with different species of rubber trees.

We are currently only working with one species (Hevea brasiliensis) but there are nine recorded species of trees. Projects are under way to head into the Amazon jungle in Peru to collect these other species, he said.
Confexhub CEO and Director of the Organising Committee of the GRC, Paul Yeo briefed the gathering on the itinerary for the four-day event, underlining its key speakers and segments.

The conference will feature speakers from 12 countries, 20 paper presentations by the cream of the rubber industry covering topics under six special-focused areas and a forum discussing venturing into new planting areas in non-NR producing countries, he said.

The conference will also include a pre-conference study tour of the Sri Lanka Rubber Research Institute as well as a post-conference half-day tour to the only rubber auction in the world, which is administered and managed by the Colombo Rubber Trader Association.

Sri Lanka-China FTA deal during Chinese President’s visit next month

Sunday Times - 31-08-2014

Sri Lanka will be launching its Free Trade Agreement (FTA) with China making the biggest leap forward in relations between the two countries in more than 60 years, during Chinese President Xi Jinping’s state visit to the island next month, official sources revealed.

Mr. Xi will be accompanied by a 150-member top level delegation including senior officials, billionaire businessmen industrialists and investors.

The Chinese leader will become the first President to visit Sri Lanka since former leader Li Xiannian in 1986. His visit assumes significance in strengthening ties between the two countries, with China investing heavily in the island nation, the sources said. The joint feasibility study on the FTA has been finalised and negotiations on formulating the agreement including the negative list are underway between officials of the departments of commerce between the two countries, a senior government official told Business Times.

The agreement will cover wide areas relating to trade, services, tariffs, market access in China, diversifying Sri Lanka’s exports and overall enhancement of the country’s export potential to China. Sri Lanka is currently negotiating 100 per cent tax concessions for Sri Lankan exports including apparels, coconut, rubber, tea based products, precious stones and jewellery, etc, a senior Treasury official said adding that Sri Lanka’s professional services would not be opened to China under this agreement. China is to get tax concessions on exports of large machinery and equipment used in the construction sector but not manufactured locally.

However he said that these areas are still under negotiations and all these aspects would be taken into consideration before finalizing the agreement, he revealed. China is the 18th largest export market for Sri Lanka with exports of US$ 121 million in 2013, just 1 per cent of total exports of Sri Lanka and the import of US$ 3 billion worth of goods to Sri Lanka equals the value of goods imported from India. This indicates a huge unfavourable trade deficit between the two countries, he disclosed.

Last week, the Business Times quoted Commerce Department Director General R.D.S. Kumararatne as saying that the FTA would most likely be ready for signatures by end 2014 or next year.

Rubber Industry Facing Great Challenges

The Sunday Leader - 31/08/2014
By Roy Silva

 

The rubber industry is facing great challenges from an increasingly competitive global market, said Dr Abdul Aziz, Secretary General of International Rubber Research and Development Board (IRRDB) and also the Chairman of Confexhub Malaysia on Thursday in Colombo.

Announcing the Global Rubber Conference to be held in Sri Lanka in October, he said that in the past few years, many other commodities had surpassed the rubber industry and therefore, it was imperative for the rubber industry to gear up and meet those challenges. The 4th Global Rubber Conference (GRC 2014), one of the world’s leading conferences on rubber sector, is to be held in Colombo from October 27 to 30.

Sri Lanka, the world’s 6th largest exporter and the 8th largest natural rubber producing country, will be hosting the event co-organised by the Sri Lanka Export Development Board and Confexhub with the strong support from both the Ministry of Plantation Industries and the Ministry of Industry and Commerce of Sri Lanka. ‘Sowing the Seeds for Sustainable Future’ is the theme of the event held to provide rubber and rubber products experts and policy makers, captains of industry and serious investors a platform to converge and meet face-to-face to discuss a wide spectrum of commercial, research and development and the 2014-15 price outlook.

Over 700 trade visitors and delegates from 28 countries including the Americas, Europe, East-Asia, North-Asia and ASEAN are expected to participate in the conference to discuss issues on the current global situation, strategies and challenges for sustainability, enhancing quality, tyre and dipped goods industry outlook and development, etc.

World Export Development Forum 2014 to be held in Africa for the first time

The forum is slated to take place in Kigali, Rwanda on 16-17 September, under the theme SMEs: Creating jobs through trade.

The World Export Development Forum (WEDF), a flagship event of the International Trade Centre (ITC), is bringing its 14th edition to Africa, with a dedicated focus on entrepreneurs.

Dedicated to supporting trade-led inclusive and sustainable development, the forum will be held in Africa for the first time, and is slated to take place in Kigali, Rwanda on 16-17 September, under the theme SMEs: Creating jobs through trade.

Besides, participants at the 14th World Export Development Forum (WEDF) will have the opportunity to hear expert views from entrepreneurs, policymakers and representatives of trade support institutions on how both new technology and traditional sectors can help promote growth.

Speakers include the Director-General of the World Trade Organization (WTO), the Secretary-General of the United Nations Conference on Trade and Development (UNCTAD) and the World Trade Editor of the Financial Times.

SMEs are the backbone of the global economy, especially in developing countries, where they contribute two-thirds of employment.

Their role is even more important in least developed countries, where they account for 80% of jobs and are key to inclusive growth. Increased participation of SMEs in regional and global trade leads to improved livelihoods for a large segment of the population, including for women and youth.

SMEs’ contribution to job creation in developing countries is thus essential. They will be a key source of employment as 500 million men and women enter the global labour market by 2030.

Among the confirmed speakers at the event with focus on entrepreneurial experiences is Ashish J Thakkar, Founder of Mara Group, which has activities ranging from real estate and tourism to financial services, information and communications technology, renewable energy and manufacturing.

The company operates in 18 African countries and has a foundation to support emerging African entrepreneurs.

Experts working in emerging sectors, such as electronic commerce and mobile technology, will comment on the potential for economic growth in these areas.

Speakers at WEDF will also come from international organizations, including Roberto Azevêdo, Director-General of the World Trade Organization; Anabel González, Senior Trade and Competitiveness Director at the World Bank; Márcio Favilla Lucca de Paula, Executive Director for Operational Programmes and Institutional Relations at the World Tourism Organization; and Aeneas C. Chuma, Regional Director for Africa at the International Labour Organization.

Among the many high-ranking ministry officials speaking at the event are François Kanimba, the Rwandan Minister of Trade and Industry; Phyllis Kandie, the Cabinet Secretary of the Ministry of East African Affairs, Commerce and Tourism of Kenya; and Humberto Santos de Brito, the Minister of Tourism, Industry and Energy of Cape Verde.

Representatives of trade support institutions who will speak at WEDF include Mulu Solomon, the Honorary President of the Ethiopian Chamber of Commerce and Sectoral Associations; Richard Sezibera, Secretary-General of the East African Community; and Bandula Egodage, Chairman and Chief Executive of the Sri Lanka Export Development Board.

WEDF is a unique global forum dedicated to discussing innovations in export development and export competitiveness, and to identifying and analyzing the challenges faced by developing countries and economies in transition.

WEDF will bring together over 500 senior national and international policymakers, heads of trade support organizations, business leaders and representatives of international agencies. Through a varied programme, participants will increase their practical knowledge in the latest innovations, processes and policies, and establish new partnerships and contacts through networking.

Lankan biz throng first Seychelles forum in Colombo

Asian Tribune - 27/08/2014

Pierre Laporte (Minister for Finance, Trade and Investment of Seychelles-second from right) gifts a ‘Coco de mer’ sea coconut prevalent only in Seychelles to Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka-second from left) on 27 August in Colombo as Bandula Egodage (Chairman & CEO-EDB-far left) and Waven William (Seychelles Ambassador to Sri Lanka-far right) look on.

No less than 130 reps from 125 Lankan firms thronged the first bilateral B2B call between Sri Lanka and Seychelles biz ever to be held in Colombo on 27 August. “Today’s event can be a stepping stone for more bilateral trade between both countries, which is an urgent need at this moment. The total bilateral trade has been low at only $3.7 Mn. Today’s initiative therefore is a major step in this direction” said Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on 27 August in Colombo.

Minister Bathiudeen was addressing the inauguration of “Seychelles Trade and Investment Forum-Sri Lanka:

Fostering Economic Partnership” event organised by the EDB and held on 27 August in Colombo. More than 130 Lankan private sector representatives from 125 companies packed the three hour long in-depth session of presentations of 27 August. Seychelles’ 20 member delegation is led by Pierre Laporte (Minister for Finance, Trade and Investment of Seychelles), and joined by Rupert Simeon (CEO of Seychelles Investment Board), Mrs Anne Lafortune (Principal Secretary – Department of Tourism), Glenny Savvy (CEO-Island Development Company) as well as such Seychelles firms as Le Grand Trianon Marie-Antoinette Restaurant, SAP Construction, INOVATECH Trading, Doubleclick Exchange, Fashion and Sportsworld, Silver Crystal Home Décor, Seychelles Trading Company, and Clifford International Business Services joining the visiting Sri Lankan delegation.

Sri Lankan firms operating in Seychelles such as Bank of Ceylon, Sanken Overseas and Seychelles government institutions such as Seychelles Investment Board, Seychelles Fishing Authority, and Seychelles Tourism Department were also taking part in the delegation.

Addressing the event, Minister Bathiudeen said: “Being Indian Ocean Islands, both countries share many long standing issues, trends, as well as benefits that are similar in nature with historic friendship. Relations between Seychelles and Sri Lanka became stronger after the visits of Heads of States from both countries to each other’s starting in 2010. The visit of His Excellency President of Seychelles Mr James Michel to Sri Lanka four years ago around this time in 2010, followed by our President His Excellency Mahinda Rajapasa’s visit to Seychelles in 2013 and this June, as well as the opening of Sri Lanka High Commission in Seychelles this year have brought bilateral cooperation and understanding to new levels. It is important for us to discover in what context this bilateral trade and business cooperation would be placed–in that how a Forum of this nature, could be leveraged.”

Minister said, “I believe that there are many avenues and possibilities but an important answer is in the gateway synergies of both countries. In that, just as Seychelles is the gateway of investment and trade to African continent, Sri Lanka too is the hub and the gateway to the more than 1.2 billion South Asian market. It is time that investors and businesses at both sides, make use of these potentials. Today’s business forum is a way to unlock these bigger opportunities. For example Seychelles investors, entering Sri Lanka can consider manufacturing partnerships here and make use of our FTAs with India and Pakistan, to access the South Asian markets. I am pleased that with today’s event can be a stepping stone for more bilateral trade, which is an urgent need at this moment. The total bilateral trade between Sri Lanka and Seychelles has been low at only $3.7 Million in 2013. Main products exported from Sri Lanka include, tea, fishing vessels, cereals and sausages, and the main import from, Seychelles are some spices. We believe that our gems and jewellery, furniture, other types of vessels, seafood and plastic products, to have strong potential in Seychelles market. It is time we find ways to increase this, low bilateral trade and today’s initiative, is a major step in this direction.”

Sri Lankan Minister also said, “I think we could both agree that, connectivity too is an important component to enhance cooperation between us. Mihin Airlines commenced flights to Seychelles last November and SriLankan Airlines too has code share arrangements, between Sri Lanka and Seychelles. Equally important is maritime cooperation. Hon Mr Jean Paul Adam, the Foreign Minister of Seychelles who paid a courtesy call on me in 2012 April, informed me that Sri Lanka has become, Seychelles’ ship building hub, which is good news for us. We have almost 25 active boat yards delivering high standard vessels. Of this 25, six are directly exporting their boats. This is yet another promising investment opening for Seychelles investors. I am pleased to say our annual boat exports around the world have increased by 45% to $ 82Mn in 2013. Despite several leading Lankan business enterprises, such as Bank of Ceylon, Nawaloka, and Sri Lanka Insurance, have actively investing in Seychelles, we observe that Seychelles investors are yet to partner here. Therefore we invite Seychelles investors to partner with us and begin investing here. We allow 100% ownership for foreign investors, profit repatriation, as well as constitutional guarantee of safety for global investors. Specifically, Seychelles investors can, leverage such synergies as travel and tourism, fisheries, boats as well as maritime cooperation with Sri Lanka. Seychelles’ previous experience in creating joint Seychelles-Africa tour packages can help formulate Seychelles-South Asia travel packages via Sri Lanka. I also invite “Seychelles Tourism” to tap the surging Sri Lankan tourist market.”

According to the Department of Commerce, the total bilateral trade between Sri Lanka and Seychelles was reported at $3.7 Mn in 2013. Main products exported from Sri Lanka included tea, fishing vessels, cereals and sausages, while the main import from Seychelles was some spices. Sri Lanka believes that gems and jewellery, furniture, other types of ocean vessels, seafood and plastic products, to have strong market potential in Seychelles. As for COMESA, it began in 1994 and currently has 21 member states (Angola, Burundi, Comoros, Democratic Republic of Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, Swaziland, Uganda, Zambia, and Zimbabwe) opening an African market of 390 million.

Addressing the event, Minister Laporte said: “I have been following Sri Lanka closely. We are impressed by Sri Lanka’s development. Seychelles and Sri Lanka share similarities and has a special friendship. The bilateral cooperation has seen renewed momentum in exchange of expertise in various fields such as education health maritime nautical services legal aviation and defence. Our government is committed to further strengthen the affinity of people of Seychelles and Sri Lanka. We continue to overcome the constraints shared by us as Island nations. Given our strategic location at East of Africa, and South of Asia and the Middle East, Seychelles in very accessible and open for business. We continue to attract investors from all parts of the globe. We hope today’s forum can create opportunities for both countries. We see ample opportunities in key sectors such as tourism, industries, fisheries, renewable energy, financial services, agriculture etc. With the recent provision of offshore financial services, our financial services have grown. Our close collaboration with OECD countries will ensure that our country will follow highest standards once we accede to WTO. We have seen an improvement in the quality of our human resources recently. We have a network of membership to Indian Ocean Commission and Indian Ocean Ring. We are vigorously engaged in signing agreements with countries of African continent as the gateway to Africa. This Forum today is also an effort to extend our international cooperation opportunities. This is the first that we organised this year. I hope this forum will entice you to commence business with Seychelles. I convey my gratitude to government of Sri Lanka-specially to the Minister and Ministry of Industry and Commerce of Sri Lanka as well as the External Affairs Ministry of Sri Lanka.”

Bandula Egodage (Chairman & CEO-EDB), addressing the event said: “This is a remarkable milestone. EDB is entrusted with enhancing exports of the country. The three objectives of this Forum by EDB are to create awareness on investment opportunities at both countries for each other, provide information on potential trade opportunities and thirdly, find networking opportunities.”

High level ‘Nam push for Lanka investments

Asian Tribune - 25/08/2014

The Government of Vietnam, while unravelling Lankan investment volumes within its borders, signalled on 22 August of its own investment push towards Sri Lanka-and coming from its high levels. “Already 10 Sri Lankan investment projects are in Vietnam. Vietnam investors and businesses too are eager to go out of the country and invest.

I hope the Government of Sri Lanka would create an enabling environment for Vietnamese business and investors” said a keen Pham Binh Minh (the Vietnamese Deputy Prime Minister who is also the Minister of Foreign Affairs of Vietnam) on 21 August in Hanoi.

Deputy PM Binh Minh was addressing Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on the afternoon of 21 August at Hanoi’s Foreign Ministry offices located at Ba Dinh. Minister Bathiudeen and his official delegation were making a courtesy call on Deputy PM Binh Minh on the afternoon of 21 August. Joining Minister Bathiudeen at the meeting were RDS Kumararatne (DG-Department of Commerce), Bandula Egodage (Chairman & CEO-EDB) and Ivan Amarasinghe (Sri Lanka’s Ambassador to Vietnam).

“Congratulations on your delegation’s successful visit to Vietnam. I have been informed that the Joint Trade Sub Committee between the two countries is now a reality” said an upbeat Deputy PM Binh Minh, and added:

“Formal relations between our two countries go a long way back to July 1970. Since then we have been able to maintain regular bilateral diplomatic contacts at higher levels. Our modest bilateral trade is now expected to increase to $1B by 2015/’16. It is clear the our current trade levels are far below its real potentials. The responsibility to meet this target now lies with you-Minister Bathiudeen, and on our side, our own Minister of Industry and Trade of Vietnam. In this background I am glad the Sub Committee has been set up. I really hope and keen that we can buy more products from Sri Lanka. I believe that to increase trade and investment, it is time that both countries make bigger progress on the existing double taxation avoidance and bilateral investment treaties. More importantly, I am pleased to say that there are already 10 Sri Lankan investment projects in Vietnam at a cumulative investment level of $ 14 Mn. Vietnam investors and businesses on the other hand, are eager to go out of the country and invest. I am positive that the Government of Sri Lanka would create an enabling environment for Vietnamese business and investors! We look forward to B2B level exchanges. We also look for cooperation on agro sector, a key sector for our economy as well as society, as well as tea sector of Sri Lanka since Sri Lanka being a major tea producer and exporter.”

At present Vietnam ranks as the 40th export destination and the 23rd supplier, accounting for 0.43% of our total exports and 1.06% of our total imports respectively. The total trade between both countries which stood at US dollars 119.5 Million in 2012 increased to US dollars 224.4 Million in 2013 registering a remarkable growth of 88%. Since 2011, Petrovietnam Oil Corporation (PVOil) has supplied to its Sri Lankan partner with petroleum products. In the field of industry, the two countries have concluded a number of important documents, creating a legal framework for further enhanced cooperation activities.

Responding to Deputy PM Binh Minh, Minister Bathiudeen said: “I thank Your Excellency’s interest to enhance trade and investment cooperation with Sri Lanka. In fact, we extend a warm welcome to Vietnamese investors to enter Sri Lanka and yes, our government is ready and extend its fullest support to Vietnamese investors entering to Sri Lanka. Sri Lanka allows 100% ownership to foreign investors’ capital, total profit repatriation and constitutional guarantee for their capital. Sri Lanka’s rubber, light electronics and tourism are sectors of investments that could serve the Vietnamese investors profitably. Our FTAs with India and Pakistan gives access to prospective Vietnamese investors more than 1.2 Bn ready market. We also seek tech know how for agro sector and your investments and technology could be leveraged by our agro sector as well. I totally agree that the time has come for business to business level cooperation between the two countries. We are the globally reputed Pure Ceylon Tea brand and I am happy we got Vietnam market’s attention as well. We also welcome your support our fishery and aquaculture.”

Deputy PM Binh Minh said: “I stress that Vietnam has good expertise in Fisheries and aquaculture, and we are happy to extend our support to enhance your fisheries as well. I shall speak to Vietnamese Minister of Fisheries and Aquaculture about supporting your fisheries.”

Responding, Minister Bathiudeen said: “We thank you for taking the initiative to contact your colleague Minister of Fishery and Aquaculture on our behalf. These new avenues of cooperation further strengthens our historic friendship.”

Both Minister Bathiudeen and Deputy PM Binh Minh stressed of the need for continued dialogues between Sri Lanka and Vietnam.

Toxic toys

It goes without saying that toys are bought with the hope that it may cheer up a child. But what if we’ve been taking this nothing for granted all along. What if you were told that the toy you recently bought is replete with a highly toxic chemical that puts children at great risks?
A laboratory study by the Centre for Science and Environment in India showed that the presence of phthalates, a highly toxic chemical, was present in toys sold in the Indian market.
These toxic chemicals which are not regulated or monitored by the government, puts children inadvertently at risk. Scientific evidence has shown that exposure to phthalates can cause a variety of health problems ranging from asthma to pre-term birth.