ICA to host 16th Congress in Sri Lanka

The International Colored Gem Stones Congress (ICA), the sole global think-tank which serves to benefit the colored gemstone industries have chosen Sri Lanka as its host country for its 16th congress to be held in May 16th – 19th, 2015 in Colombo at the Cinnamon Grand Hotel.

This is the second time that Sri Lanka will be hosting the prestigious ICA event which prides itself for uniting various segments of the colored gem trade. The theme for the event is “Sapphire & MORE”. A ‘Facets Congress Gem Show’ will also be held from May 15th to 18th at same venue.

Spice exports up 40% in 2013

Sunday Observer - 07/09/2014

Sri Lanka's spice exports rose 40 percent to $329 million in 2013 from $ 236 million in 2012. Spice export revenue was US$ 115 million in 2009, Export Development Board EDB statistics revealed.

As Sri Lanka's spice exports leaped by 40%, a new program was launched by the EDB last week to boost exports of the perennial crop. Meanwhile, a leading packaging consultant said that the Sri Lankan export packaging sector is now maturing with more ‘high barrier package’ visibility.

“The key factor is how to market our spices. Our spices are traditionally exported in bulk form. Sri Lanka now encourages value added exports and discourages raw exports.

We need an open dialogue among exporters, industry and the EDB to boost exports,” EDB Chairman Bandula Egodage told the first national packaging awareness seminar organised by EDB for spice and allied product exporters.

“The key factor is how to market our spices. The first impression from packaging tells a lot to the consumer. Production of raw material is encouraged but not exporting it, since value addition should be done here for much needed foreign currency,” he said.

“The primary objective of today's event is to create awareness on packaging quality. Second, to identify global trends - easy identification and novel appearance in packaging enhances brand value and creates additional sales. Third, we need an open dialogue among exporters, industry and EDB so that exports are boosted,” Egodage said.

“The global packaging awareness session is another initiative by the government to move spice exports, specially cinnamon, away from being exported in bale form to consumer-friendly packaging material,” said DG, EDB, Sujatha Weerakoone.

“This change in packaging not only assures quality but even build's Sri Lanka's image while increasing exports. Packaging should reach the consumer in its original condition,” she said.

“We invite the Lankan packaging sector to take part in various international trade fairs facilitated by the EDB but with your own financial arrangements. The internationally accredited ‘Pure Ceylon Cinnamon Global Certification’ lion logo was not given by the government to any particular company but only to a particular product design of the given company,” Weerakoone said.

“The ownership of Pure Ceylon Cinnamon Global Certification is vested with the EDB. This certification would give maximum value to our own true cinnamon, which faces competition from cheap cinnamon known as Cassia,” she said.

Lankan cinnamon exporter firms which were successful in fulfilling the criteria to win the official sanction for the use of the internationally accredited ‘Pure Ceylon Cinnamon Global Certification’ were awarded certification recently at the EDB.

“The design of the packaging sells the product. The 'packaging barrier’ determines the performance of the product, which in turn, determines whether the consumer will re-purchase it or not and therefore, it's a key ingredient,” said Packaging Consultant and a former top executive of an FMCG multinational, Abhaya Seneviratne.

“The ‘packaging barrier’ means to what extent the packaging material can keep the product inside without becoming spoilt by the environment,” he said.

“For instance, a high barrier plastic film packaging can seal spices well from seeping moisture and water, while the same spices packaged in a gunny sack could be contaminated due to the weak nature (low barrier) of the sack,” Seneviratne said.

Lanka-China FTA electrifies $8B global apparel giant to action

Asian Tribune - 06/09/2014

Mark Green (Executive Vice President of Global Supply Chain of New York’s PVH Corporation-left) meets Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka-right) in Colombo on 14 August.

The forthcoming Lanka-China FTA has electrified no less than a $8B global apparel giant who is also the world’s largest shirt maker. “We are very excited about the forthcoming Lanka-China FTA; having duty free market access to China is very important for us as an apparel sourcing firm and the benefits are great.

This is even more important for us since we have considerable income from Asia-30% of our turnover from Calvin Klein brand alone originates from Asia!” said Mark Green, the Executive Vice President of Global Supply Chain of New York’s PVH Corporation on 14 August in Colombo.


Executive VP Green was addressing Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on 14 August during his meeting with Minister Bathiudeen at the Ministry of Industry and Commerce, Colombo 3.

“Things are going very well with PVH. Recently we opened an office in WTC and reached $80 M business with Sri Lanka” said Executive VP Green, and added: “Since we acquired the global brand Calvin Klein the intimate apparel product line has become very important in our turnover. We are looking at working with Lankan apparel makers MAS, Brandix, Jinadasa, and Hirdramani Group–they are our big suppliers. We want to grow our business here further. Sri Lanka has been best in apparels, particularly intimate apparels in my experience. We source from around the world and one of the things I see is that Sri Lankan apparels is a role model for other countries to study and follow-because when you look at what you have done here in intimate apparels, its remarkable-lean manufacturing model which MAS started is probably a best in the world. Sri Lanka is also considered to be a world expert in apparels manufacturing-in compliance record, CSR and sustainability such as work on carbon neutral factory. When you compare with other apparel producers in the regions, Sri Lanka is way ahead and should be credited for that. PVH is seen as an American corporate but we are in fact Glocal in nature. We are very excited about the forthcoming Lanka-China FTA-having duty free market access to China is very important for us as an apparel sourcing firm and the benefits are great. This is even more important for us since we have considerable income from Asia-30% of our turnover from Calvin Klein brand alone originates from Asia! Having a production centre in Sri Lanka with duty free access to China market is very exciting for us. This is really exciting!”

The New York Stock Exchange (NYSE) listed PVH Corp (or Phillips-Van Heusen) is one of the largest lifestyle apparel companies in the world (and also reportedly the world’s largest shirts provider). Most of its brands are virtually household brands-Calvin Klein, Tommy Hilfiger, Van Heusen, IZOD, Bass, ARROW and Eagle. PVH reported $8.2 Bn in revenues in 2013, exceeding previous projections for 2013. PVC has 2035 stores across the world, 1025 of which are in Europe. PVH’s 2013 revenue projection stands at $8 billion.

Responding to Executive VP Green, Minister Bathiudeen said: “We are aiming for new levels of bilateral trade cooperation with China and under the leadership of HE the President Mahinda Rajapaksa. Sri Lanka-China FTA would create great opportunities for both countries. We have concluded joint feasibility studies on this FTA. Now we have started second round of negotiations. I am pleased to inform you that one of the items we look forward to make duty free in this historic FTA could be apparels! Under the guidance of HE the President Mahinda Rajapaksa, we are aiming to conclude the free trade pact during the forthcoming first ever visit of Chinese Premier to Sri Lanka. There is no doubt that this historic agreement would be a great opportunity not only for PVH but many such global multinationals who want to leverage our strategic hub positioning.”

According to the Department of Commerce of Sri Lanka, bilateral trade between Sri Lanka and China has grown by 15.2% in 2013 to $3.08 Bn from 2012’s $ 2.67 Bn. Sri Lanka’s exports to China in 2013 rose by 12.49% to $122 Mn from 2012’s $108.12 Mn. China has come within the first 20 export destinations for Sri Lankan products.

Also present at the 14 August session were Bandula Egodage (Chairman and CEO-EDB), RDS Kumararatne (DG-Department of Commerce) and M Raghuraman (CEO, Brandix Market Watch, Brandix Lanka Ltd).

Lanka export acceleration push begins

Asian Tribune - 08/09/2004

Rishad Bathiudeen (Minister of Industry and Commerce-second from left) briefs Anton Said (Chief of Export Strategy, ITC-second from right) about Sri Lanka’s export landscape on 13 August in Colombo as Anura Siriwardene (Secretary-Ministry of Industry and Commerce-far left) Bandula Egodage (Chairman & CEO, EDB-third from left) and Pablo Lo Moro (Senior Advisor-Export Strategy, ITC-seated far right) look on.

Exports, being the lifeline of Sri Lankan economy, is a national priority. The urgency of exports accelerating strategy is such that it could kick-start even before its full design cycle is over. Meanwhile, Brand Sri Lanka packs hidden potentials that could be leveraged for national export growth.

“At the end of the day the buck lands at somebody’s desk. Who is ultimately responsible? We can start implementing the export acceleration strategy while it is being designed and before it’s totally finalised. We may not need to wait until it is fully endorsed” voiced a determined Anton Said (Chief of Export Strategy, ITC) on 13 August in Colombo.

ITC Chief Anton Said was addressing the launch of EDB’s National Export Strategising initiative on 13 August in Colombo. The Export Development Board (EDB) -the national trade promotion organization specially vested with the responsibility for promotion and development of exports- is embarking on formulating the 2015-2020 National Export Strategy (NES) to achieve the $20 B export target by 2020 as set out in ‘Mahinda Chintana’.

The formulation of the 2015-2020 NES is carried out with technical assistance from International Trade Centre (ITC) Geneva and in consultation with the public and private sector stakeholders. NES formulation is also a statutory requirement under the Export Development Act No 40 of 1979. Geneva’s ITC is a subsidiary of the World Trade Organization (WTO) and the United Nations Conference on Trade and Development (UNCTAD) providing trade-related specialised technical assistance to exports of various economies-specially transition economies. ITC is no stranger to Sri Lanka; in 2010, ITC implemented a business survey in Sri Lanka in collaboration with Lanka Market Research Bureau Limited (LMRB).

Also taking part in the National Export Strategy formulation session of 13 August at EDB were representatives from the export community, various Chambers, EDB officials, and top government officials from many line agencies connected to exports.

Addressing the session Rishad Bathiudeen (Minister of Industry and Commerce) said: “This export strategy effort is carried out with valuable technical assistance from ITC and in consultation with the public and private sector stakeholders. As global markets are increasingly separating to groups of mature markets and emerging markets as well as consumer markets become more demanding we need to change our export strategies as well. In fact I have been given to understand that in International Trade Centre’s global assessment on Trade Promotional Organisations the ITC, recently indicated our EDB to be in par with some of the export agencies of highly developed economies. In that, ITC revealed that EDB is now in a ITC benchmark for the first time. This is encouraging news in our efforts to achieve $20 Bn exports by 2020 under the committed vision of HE the President Mahinda Rajapaksa. Thanks to our committed exporters and the Vision of our HE the President today, we are able to see a five year high in first half exports for 2014 at $ 5.4 Bn. This is a huge increase of 45.9% from year 2010’s first half exports of $ 3.7 Bn. There is no doubt that both ‘country branding’ and ‘export strategy’ always go hand in hand. To this end also there is good news for Sri Lanka exports. It is that Sri Lanka in its first effort entered at 67th rank in the Country Brand Index of “Future Brands”. Out of 118 countries surveyed Sri Lanka emerged at 67. Immediately above us is China at rank 66 while Vietnam ranked below us at 69 and Poland at 75. Despite the export successes of these countries Sri Lanka still has a stronger ranking. What this shows is Sri Lanka’s hidden market potential and it is time we leverage it for our export development. For us to leverage these international developments to our export growth we need to take viable steps. What is also should be stressed is that today’s strategy effort enables our exports sector to draw in private and public sector partnership. This is fundamental in our approach to national export strategy development, implementation and also the achievement of $ 20 Bn by 2020. Today’s National Export Strategy session is an important step in accelerating exports, and not just a mere fulfilment of the requirements stipulated in the Export Development Act No. 40 of 1979.”

Anton Said (Chief of Export Strategy, ITC), addressing the session said: “In 10 years the world has changed. Export acceleration strategy is the process and the realism need to be apparent in the final product. ITC’s mission is to enable developing economies and transition economies’ export success in the global economy. In last 12 years we developed over 50 strategies in 40 countries, and therefore we have lots of experiences in this business. National export document can provide a direction and a blueprint which if followed can lead to success. ITC’s approach to national strategy design and implementation is based on two fundamental objectives-to enhance international competiveness of enterprises and export orientation. Export enterprises do not exist in a vacuum. Export competitiveness is defined as cross cutting issues and constraints affecting multiple sectors-for example quality. The growth momentum needs to be acceptable to all players winning their confidence-including development partners. And all institutions and Ministries that define export success are part of this initiative. Prioritisation is an important challenge. We need to ensure that the established systems, structures, mechanisms of the country are effective-they need to be functional at policy level as well as operational level so that export momentum is sustained and accelerated. This initiative has to work through existing organisations and many Lankan initiatives such as hub strategy and “Unstoppable Sri Lanka” etc. Therefore our point of departure is using existing national strategies and to build on them. The success of exports depends on aggregate institutional network. At the end of the day the buck lands at somebody’s desk. Who is ultimately responsible? We can start implementing the export acceleration strategy while it is being designed and before it’s totally finalised. We may not need to wait until it is fully endorsed since we may know what the targets are, parties are and priorities are. After this we can move on to a detailed design. At that stage the principle sectors identified by the strategy will have their own detailed sub strategies in relevant areas such as trade financing, branding, quality management, trade promotion, packaging etc. The Consolidated National Export Strategy document will have an implementation management framework with measurements to track progress. ITC will be partner in this acceleration effort, help you to make the transition, and we are as available as much you need us. This is both a top down and bottom up approach. We want you to be passionate about your export strategy. Having a strategy is a huge milestone but not the end.”

Bandula Egodage (Chairman & CEO of EDB) addressing the event said: “Our exports are growing rapidly thanks to you, our exporters. Export revenues are at 20% of our GDP and we are confident that we can achieve the $20 Bn goal by 2020. This is due to the clear framework of Mahinda Chinthana, the visionary leadership of HE the President Mahinda Rajapaksa, the strategic economic controls of P.B.Jayasundara, the well supported economic development of Economic Development Minister Basil Rajapaksa and the committed leadership and guidance of Minister of Industry and Commerce Rishad Bathiudeen, Deputy Minister of Industry and Commerce Lakshman Wasantha Perera and Anura Siriwardene our Ministry Secretary. The reason we need an export strategy is that with limited resources, we may have to prioritise to further develop and accelerate it. Also it’s a statutory requirement and we need to have a microscopic view. We are fortunate to have ITC supporting us.”

Lanka vying for $3B rubber sector

Asian Tribune - 07-09-2014

Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka–second from right) and HE Azmi Zainuddin (Malaysian High Commissioner to Colombo-second from left) join to inaugurate Global Rubber Conference 2014 (to be held in October in Colombo) on 28 August in Colombo as Dr Abdul Aziz (Secretary General of International Rubber Research & Development Board-far left) and Bandula Egodage (Chairman & CEO-EDB-far right) look on.

As the first ever Global Rubber Confab to be held in Sri Lanka is announced on 28 August, the country positioned its historic rubber industry to be a $ 3B sector. And a top global rubber body voiced that rubber prices would recover ‘before very long’.

“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 our rubber farmers. I believe it is time for a long term development plan for this sector. The 2013 rubber exports of $960 Mn is a 100% increase compared to rubber exports five years ago” said a keen Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on 29 August in Colombo.

Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka–left) greets Dr Abdul Aziz (Secretary General of International Rubber Research & Development Board-right) as HE Azmi Zainuddin (Malaysian High Commissioner to Colombo-centre) looks on at the inauguration event of Global Rubber Conference 2014 (to be held in October in Colombo) on 28 August in Colombo.

Minister Bathiudeen was addressing the launch event of Global Rubber Conference 2014 to be held in October in Colombo. The first Global Rubber Conference (GRC) ever to be held in Sri Lanka, it is co-organised by the Export Development Board under Minister Bathiudeen as well as Confexhub, Malaysia. GRC, a leading global conference on rubber sector, is held in collaboration with Sri Lanka’s Ministry of Industry and Commerce and Ministry of Plantation Industries, is 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, R&D developments and 2014-’15 price outlook.

Also taking part at the 28 August session were members of Sri Lankan media landscape, top reps from rubber manufacturing and exporting firms, officials from the collaborating Ministries, Sujatha Weerakoone (DG-EDB) and Dr Yousuf Maraikkar (ED-EDB).

Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka–right) addresses the inauguration event of Global Rubber Conference 2014 (to be held in October in Colombo) on 28 August in Colombo as Dr Abdul Aziz (Secretary General of International Rubber Research & Development Board-centre) and HE Azmi Zainuddin (Malaysian High Commissioner to Colombo-right) looks on.

“We know that natural rubber constitutes almost one third of world’s total rubber supply. It is also of great importance to a country like Sri Lanka not only because of its exports but also the employment rates on this sector which is considerable” said Minister Bathiudeen, and added: “As a result, our government, under the vision of HE the President Mahinda Rajapaksa, is 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 our rubber farmers. 65 percent of the total planted rubber in Sri Lanka are owned by such small farmers. Therefore for Sri Lanka, apart from country’s historic reputation for natural rubber, there is an important “socio-economic” reason to enhance this sector. In order to retain Sri Lanka’s historic reputation as a key player in rubber supply chain and also to overcome rubber industry issues, I believe it is time for a long term development plan for this sector. It would also be useful for us to introduce re-planting assistance. This could be funded by a temporary rubber cess, during times of high earnings from rubber exports. As for exports, I am pleased to say that in 2013, Sri Lanka exported $ 72 Million of natural rubber and another $887 million of rubber finished products. This 2013 total of $ 960 million is a 100% increase compared to rubber exports five years ago in 2009. I am also pleased to inform you that My Ministry has commenced two important initiatives for this sector at a cost of more than $ 46000. The two initiatives are creating the first ever Rubber Industry database and launching the national rubber research census by my Ministry. Our findings from the first national rubber census are interesting. So far we have completed it in Sabaragamuwa and Western provinces. Our development officers have found 203 rubber industries in both provinces. More than 10,000 rubber industry jobs are active in Western province with 815 new jobs being created in 2013. It was also found there is a lack of skilled people in support services such as die and mould design and manufacturing. We found that training is needed to be provided for all job categories in both latex rubber sector and rubber product manufacturing sector. In such a background, I believe that the forthcoming Global Rubber Conference in Colombo will be a great opportunity for our rubber industry to find solutions to these issues and move to the next level. I have no doubts that our industry stakeholders will make the most of this rare opportunity.”

“The rubber research institute of Sri Lanka was the first such in the world established in 1909. I was here when we commemorated first centenary in 2009” said Dr Abdul Aziz (Secretary General of International Rubber Research & Development Board), addressing the event. “So many research is done on this rubber tree. 70% of global rubber production goes to the tyre industry. Rubber is given centre-stage for its contribution to health. What is important is there are nine other species of rubber –we are only working with just one species here. Rubber research institutes are working on this-We are now working to go into Amazon jungle region with permission of Peruvian government to collect the other eight species-sometime next year. So you can imagine the benefits from these new species advantages of disease resistance, planting in marginal areas and new timber. The forthcoming GRC is an opportunity to be aware of latest R&D on this crop. At this moment rubber prices are not so conducive but you know that rubber always bounces back! We hope before very long rubber prices would recover” Dr Aziz said.

Bandula Egodage (Chairman and CEO-EDB), addressing the event said: “Sri Lanka is world’s sixth largest rubber exporter and 8th largest natural rubber producing country in the world. All rubber stakeholders are here today. This form of gathering of stakeholders is the need of the hour for rubber exports of Sri Lanka. Our plantation industry makes raw rubber while manufacturers produce rubber based products. The theme of government is to grow rubber aiming to increase raw rubber production in Sri Lanka. We discourage raw rubber exports. We are not curtailing raw rubber production in Sri Lanka but promoting rubber based exports. We need to go for value addition. We require high tech, foreign expertise, networking, awareness, research and development etc. That’s why EDB accepted Confexhub’s invitation to partner for this event.”

Sri Lanka's bilateral trade with Israel surges 178% since trade pact in 2007

The Colombo Page - 08/09/2014

Sri Lanka's bilateral trade with Israel has surged by 178% since a trade pact signed in 2007, signaling even closer B2B links between the two countries, a press release issued by the Ministry of Industry and Commerce said.

"We have a history of bilateral trade and business cooperation with the State of Israel. This time we took about 40 leading businessmen to Israel from Sri Lanka and completed a successful Business Forum", Sarath Wijesinghe, Sri Lanka's Ambassador in Israel said Friday at a business review meeting in Colombo.

He was addressing the progress review meeting of the recent Lankan trade and business delegation to Israel facilitated by Export Development Board (EDB) and supported by the Ministry of External Affairs. Taking part at the session were business representatives, who were in the July 2014 delegation to Israel.

In July, a trade and business delegation from Sri Lanka consisting of 40 business leaders led by Neomal Perera (Deputy Minister of External Affairs) completed a successful Business Forum in Israel, interacting with their Israeli counterparts, including the well- known L.R. Group, and Sri Lanka-Asia Chamber of Commerce.

The businesses in the mission shared interests in such sectors as tourism, hi-tech, water, energy, medical, apparel, employment, agriculture, greenhouse cultivation, dairy, fish, flowers, diamonds, gems, jewelry, rubber, and education. Dr. Lakshman Jayaweera (Chairman-BOI), Dr. Nandalal Weerasinghe (Deputy Governor of the Central Bank), business reps from Chambers of Commerce and various sectors addressed the Seminars.

In April 2007, Sri Lanka and the State of Israel signed a historic Trade and Economic Co-operation Agreement of general nature enhancing bilateral relations to new levels. Since then, bilateral trade has surged by a huge 178%, as of December 2013.

According to the Department of Commerce, in 2013, total bilateral trade between Sri Lanka and Israel stood at US$175.63 million, rising by 11% from 2012. The balance of trade was in favor of Sri Lanka. Diamonds, brought down from Israel to Sri Lanka are value added here and re-shipped to Israel. Annually such diamond imports and exports exceed US$ 50 million mark and in 2013, diamond exports to Israel rose to US$ 79 million, claiming 80% of 2013's Lankan exports. Tea, fish, pneumatic rubber tyres, and special yarns were other Lankan exports to Israel in 2013. In the same year, leading imports from Israel were diamonds, filaments and miscellaneous chemicals.

Herzliya based LR Group, the Israeli project development firm operates globally in financing, constructing, and managing medium and large scale projects in developing economies. It also reportedly has a track record of creating and managing over US$1 billion agriculture projects around the globe in Africa (Angola), Asia & Pacific, Russia and Central Asia, South America, and Europe.

‘Our trade future looks good!’: Seychelles

Daily FT - 03/09/2014

• New air-connectivity boosts exports, transit travel: Seychelles
• 'Proposing first Lanka-Seychelles Jt. Committee!’: Rishad
• 'Accepted! You also get COMESA market!’: Minister Laporte

Enhanced trade cooperation cemented by a new Joint Trade Committee will open Sri Lanka’s anticipated trade volumes with Africa said Seychelles on 27 August. Lankan exports to Africa’s top blue economy as well as transit passenger volumes to Colombo is now on the increase as a result of recent air connectivity.

“The prospective Joint Trade Committee between Sri Lanka and Seychelles will be Sri Lanka’s platform for accessing the huge African market. Almost all the issues regarding quarantine of certain exports have now been resolved and all requirements met! As a result we are now receiving loads of more Lankan fresh fruits and vegetables than before,” said an upbeat Minister for Finance, Trade and Investment of Seychelles Pierre Laporte in Colombo.

Visiting Minister Laporte was addressing Minister of Industry and Commerce of Sri Lanka Rishad Bathiudeen during his official courtesy call on Bathiudeen on 27 August at EDB, Colombo. Minister Laporte is currently leading a 20 member Seychelles business and investment delegation to Sri Lanka. Just prior to the courtesy call on Bathiudeen, Laporte joined for the opening of first Lanka-Seychelles Business Forum organised by the EDB. Also present at the courtesy call were Seychelles’ High Commissioner to Sri Lanka Waven William, EDB Chairman and CEO Bandula Egodage and Department of Commerce of Sri Lanka DG R.D.S. Kumararatne.  According to the Department of Commerce, the total bilateral trade between Sri Lanka and Seychelles was reported at $ 3.7 million in 2013. Main products exported from Sri Lanka included tea, fishing vessels, cereals and sausages, while the main imports from Seychelles were some spices. Sri Lanka believes that gems and jewellery, furniture, other types of ocean vessels, seafood and plastic products, 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 Minister Laporte, Minister Bathiudeen said: “We welcome you in your first visit to Sri Lanka at a time we expect positive GDP growth here exceeding 7%, thanks to the committed vision of HE the President Mahinda Rajapaksa. Our Free Trade Agreements with India and Pakistan opens more than 8,000 product lines to be exported from Sri Lanka – tariff free. This South Asian market is an almost 1.3 billion strong that Seychelles businesses can aim at, through Sri Lanka. Today I propose that both Seychelles and Sri Lanka form a Joint Trade Committee to strengthen trade and business cooperation. I also propose a top Lankan business and trade delegation to Seychelles, possibly this October or November.”

“We will be very happy to receive a Lankan trade and business delegation to Seychelles to explore opportunities. Yes, this is something we can make it happen. This Joint Trade Committee is a good suggestion and could be set up during your delegation’s forthcoming proposed business visit to Seychelles possibly in October or November this year. I stress that your entry to Seychelles opens Africa’s COMESA market for you,” said Laporte responding to Minister.

“There are a whole lot of new opportunities -in that since we in Seychelles have free market access to all the 19 COMESA (Common Market for Eastern and Southern Africa) countries and the 26 country bloc of Southern African Development Community (SADC). There are immense benefits to be gained. The prospective Joint Trade Committee between Sri Lanka and Seychelles will be Sri Lanka’s platform for accessing the huge African market. We are also interested in education services in Sri Lanka – already we have an arrangement with the accredited Maritime School in Sri Lanka, and already our students are here.
“Almost all the issues regarding quarantine of certain exports that arose when we commenced air services between both countries have now been resolved and all requirements met! As a result we are now receiving loads of more Lankan fresh fruits and vegetables than before. Also important is that now more international travellers are directly coming to Sri Lanka from Seychelles, to transit to Asia from Colombo, abandoning their usual transits to Asia through the Middle Eastern airports.

“We have cinnamon everywhere even in jungles and home backyards. But we cannot process or produce it competitively due to higher labour cost and the current labour is diverted to our tourism and fisheries. Therefore our freely available Cinnamon sector is also a good investment opportunity for Lankan investors. We will be very happy to assist investors willing to invest in our cinnamon sector. The Sri Lanka – Seychelles trade and business future looks good!”

Responding to Laporte, Bathiudeen said: “We are happy to see that now there are two flights a week between both countries, helping to increase business. Tourism, fisheries and education are promising sectors for immediate cooperation. Since the Indian Ocean Tuna Commission (IOTC) head offices are also located in Seychelles, fisheries cooperation with Seychelles could be further expanded.”