EDB tackles value addition and packaging for spices

Daily FT - 03/09/2014

Spice exports have recorded a 40% increase, with the key challenge being how to market Sri Lanka’s products to gain better returns, an official said yesterday.
Sri Lanka’s total spice exports in 2013 stood at $ 329 million, rising by 40% from 2012’s $ 236 million. Last year’s spice exports revenue were also a leap of more than 100% from 2009’s $ 115 million, Export Development Board Chairman Bandula Egodage told companies at the first national packaging awareness seminar.

“The key factor is how to market our spices. The first impression from packaging tells a lot to the consumer. Our spices are traditionally exported in bulk form. Sri Lanka now encourages value-added exports and discourages raw exports,” he was quoted as saying in a statement by the Industry and Commerce Ministry.
“Production of raw material is encouraged but not exporting of them since they need to be value added here for much-needed foreign currency.”

He insisted the primary objective is to create awareness for exporters on packaging quality of spice exports. Secondly, to identify global market trends, easy identification and novel appearance in packaging which enhances brand value and creates additional sales. Thirdly, Sri Lanka needs an open dialogue among exporters, industry and EDB so that exports are boosted.

The EDB has invited the Sri Lankan packaging sector to take part in various international trade fairs facilitated by EDB but with their own financial arrangements. They had pointed out the internationally-accredited ‘Pure Ceylon Cinnamon Global Certification’ Lion logos as a step by the EDB to promote marketing of spices for better revenue.

The ownership of Pure Ceylon Cinnamon Global Certification is vested with the EDB. The international permission of this is obtained under the Geographical Indicator framework. This certification would give maximum value to true cinnamon, which has competition from cheap cinnamon called cassia.
Last month, 13 selected Lankan cinnamon exporter firms which were successful in fulfilling the required criteria to win the official sanction for the usage of the internationally-accredited ‘Pure Ceylon Cinnamon Global Certification’ were awarded their certifications.

Record number of SMEs to participate in FACETS Sri Lanka 2014

Daily FT - 01/09/2014

Over 50 small and medium enterprises will take part in FACETS Sri Lanka 2014, the international gem and jewellery exhibition, according to the organising committee. Organised by the Sri Lanka Gem and Jewellery Association (SLGJA), this year’s event held for its 24th year, will be held from 4-7 September at the Sirimavo Bandaranaike Memorial Exhibition Centre.

FACETS Sri Lanka 2014 this year specially highlights the individual exhibitor pavilions from, the National Gem and Jewellery Authority (NGJA) and an SME pavilion from the Sri Lanka Export Development Board (EDB). These moves come as an encouraging and positive sign with the entire industry with targets to achieve $ 1 billion export revenue by 2016. The National Gem and Jewellery Authority will also be providing gem testing and assaying facilities at the event.

Upbeat about the participation an SME stall holder sharing his views said: “FACETS 2014 not only provides ample opportunity for local businesses to showcase their capabilities to participating delegation from around the world, but also creates strong networking, knowledge sharing and skill enhancing opportunities for the SME sector enterprises. Local manufacturers will be able to acquire knowledge on technology, process, best practices and the importance of maintaining industry quality standards right throughout the event.”
Further encouraging the local industry a gem cutting competition will also be held this year. The objectives of the competitions were to identify and recognise the capabilities of local talent and help promote the gem cutting and lapidary industry to be in par with the required export quality.

FACETS 2014 Juzar Adamaly Chairman said: “The SME sector plays a vital role within the entire gem and jewellery industry. The Government has also introduced a loan scheme to the SME sector further understanding the importance of nurturing quality businesses and products. We would like to take this opportunity to acknowledge the continuous support by the National Gem and Jewellery Association and the Export Development Board throughout all our initiatives locally and internationally”.

The organisers have planned to display precious and semiprecious gems as well as jewellery, lapidary and machinery items. Knowledge sharing sessions include a series of seminars conducted by international and local panellists this year.

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.”